2010 (12) TMI 1208

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..... 2. Briefly stated, the facts of the case are that the assesseesociety filed its application for grant of registration u/s 12AA on 26.3.2010. This society was created on 8.7.1983. As per the Memorandum of Association (MoA), the objects of the society are charitable in nature but the ld. CIT has noted that the activities carried out by the assessee-society are not charitable in nature. According to the ld. CIT, perusal of the income and expenditure statement filed for financial years ending 31.3.2007, 31.3.2008 and 31.3.2009, revealed that the society was collecting fees like service charges, lab test fees etc from the patients. According to him, there is no mention about any subsidized treatment to the poor and needy patients. He found ....

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....oceedings and not on surmises. 6. The Commissioner of Income tax erred in making observations without applying his mind to the nature of the activity in the proper viewpoint. Documentary evidence produced at the time of hearing about the activities of the hospital has been ignored. 7. The learned Commissioner was not justified in ignoring the assurance of Finance Minister in the Parliament, which is binding on him as held by the Hon'ble Supreme Court in R & B Falcon (A) Pty. Ltd. v. CIT (2008) 301 ITR 309 (SC) and was also not justified in ignoring the Board Circular No. 11 of 2008 dated 19th December 2008, when both the objects and activities were clearly consistent with the explanation of law in the Board Circular, w....

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.... 10. The Staff Strength is 6 and 1 Doctor is employed, Specialist were called for operations and paid on case wise. The Hospital caters mainly to the poor people from Ismailpuram area, Khanpalayam and Lakshmipuram area." 4. It is noted that the assessee had complied with the directions of the ld. CIT and has also produced the books of account pertaining to financial year 2008-09. The ld. CIT has also perused the cash book, ledger, vouchers etc. which were produced before him. The assessee has also furnished copy of the documents filed before the Registrar of Companies as directed by the ld. CIT. Copy of the auditors reports for the years ending 31.3.2007, 31.3.2008 and 31.3.2009 are also placed before us for our perusal. We have....