2020 (6) TMI 55

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.....No.1226/Bang/2009. 2. The appeal was admitted vide order dated 08.11.2011, for considering the following substantial question of law: "1. Whether the order passed by the Income Tax Appellate Tribunal granting renewal of exemption is contrary to Section 80- G(5)(iii) of the Act is therefore unsustainable?"   3. The facts giving rise to filing of this appeal briefly stated are that, the assessee is a Trust established through a Memorandum of Association and registered with the Registrar of Societies, Mysuru on 07.12.1961. Subsequently, the Registrar of the Societies issued a letter dated 30.12.1964 proposing amendments of some rules and regulations and change of name of the Society as CBCI Society for Medical Education in....

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....ficiary should be from particular caste or religion. The Assessing Officer rejected the application filed by the assessee stating that the clauses in the proposed Memorandum of Association was not in consonance with the provisions of Section 80G(5)(iii) of the Act. Being aggrieved, the Assessee preferred an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal'). The Tribunal vide impugned order dated 23.07.2010 allowed the appeal preferred by the assessee. In the aforesaid factual background, the Revenue has filed this appeal. 4. Learned counsel for Revenue while inviting the attention to Clause 3 of the Memorandum of Association submitted that the object of the Trust was primarily for the benefit of ....

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....further submitted that thereafter, the exemption under Section 80G of the Act was granted and it continued to be renewed from time to time. It is further argued that the clause "primarily for benefit of Catholics; other may be admitted without distinction of caste or creed" has been thoroughly examined by the department several times earlier. Only after satisfying that the import of Proviso (iii) to subsection (5) of section 80G is not attracted, the approval was given and renewed several times consecutively. He also invited the attention of this Court to paragraph No.7 of the order passed by the Tribunal and submitted that the Tribunal has taken into account the material available on record and has rightly concluded that the respondent - a....

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....account the statistics in the financial year 2008-09 and has found that the assessee - Trust's Hospital has treated 8,51,127 patients of non-Christian community out of 9,00,406 total patients received treatment which works out to 94.5%. Similarly, in the financial year 2009-10, the total number of patients received various treatments in the hospital is 9,07,641 and out of which, 8,50,146 patients did not belong to the Christian community. Thus, this fact belies the finding recorded by the Director of Income Tax (Exemptions) that the Assessee - Trust had served only Catholic community and only run for the benefit of the Catholics. It has further been held that out of total number of 685 students admitted in the medical college, 195 students ....