AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (9) TMI 513
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....and had been receiving payments against such services from hospital which are utilized towards providing such services and small surplus which remains is again utilized towards the carrying on other charitable activities as per the aims and objects of assessee society which are clearly charitable in nature as per Sec. 2(15) of the I.T Act. It was submitted that the ld. CIT(E) has failed to consider the aims and objects of the assessee trust and has referred to the receipt and expenditure account which are the subject matter of assessment proceedings and not while deciding the application seeking registration u/s 12AA of the Act. It was accordingly submitted that the assessee society was engaged in charitable activities by way of providing medical relief to the poor and public at large and not by way of providing any general Public Utility as held by the ld. CIT(E) and therefore, the proviso to section 2(15) of the Act which is only applicable in case of any other objects of General Public Utility is not applicable in the instant case and has been wrongly invoked by the ld. CIT(E). In support, reliance was placed on the following decisions: * Institute of Chartered Accountants of ....
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....plicant society is receiving contractual receipts on account of providing ambulance services. 3.1 Further the Principal Medical Officer, Pratapgarh has also provided a copy of letter no. PMO/RMRS/DDC/2015/172 dated 22-08- 2015 addressed to Mahaveer Charitable Society to provide 3 helpers (Manpower) @ Rs. 4600/- per head per month. It also strengthens the fact that applicant is providing Manpower on contract basis and getting receipts in the name of "Salary receipt from Govt." 04. As such, the income from impugned Business of providing Man power and contractual services of Ambulance Van is forming 76.55% for F.Y 2017-18, 86.60% for F.Y 2016-17, 81.72% for F.Y 2015-16 which are more than 20% i.e. in contravention to the provisions laid down in 1st proviso to sec. 2(15). Hence, the applicant fails condition (b) of the proviso. Further, such commercial activities are not the incidental but are pre-dominant activity of the applicant. Hence, the assessee also fails condition (a) of the proviso. Therefore, as per the proviso, such activity in the nature of advancement of an object of GPU shall not qualify as charitable activity. 05. Based on above discussion, it is clear that the ac....
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....ctivities of the petitioner fell within the term "education", it was nonetheless held that the petitioner institute fell under the category of "advancement of any object of general public utility" as the petitioner is a statutory body constituted under the ICAI Act and its fundamental or dominant object was to exercise control and regulate the activities of Chartered Accountants in India. The relevant finding of this court is as under: "The petitioner-institute will fall under the sixth category, i.e., advancement of any other object of general public utility. The petitioner-institute cannot be regarded as an educational institute as the petitioner's main or predominant objective is to regulate the profession of, and the conduct of, Chartered Accountants enrolled with them. The petitioner is a statutory authority under the Chartered Accountants Act, 1949 ("the CA Act") and its fundamental or dominant function is to exercise overall control and regulate the activities of the members/enrolled chartered accountants. This is apparent from the CA Act and the regulations framed under the said Act." This Court while dismissing the appeal (ITA no. 274/2012) preferred by the revenue....
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....unctions of Urban Planning including preparation of Master Development Plan and Zonal Development plans; formulation and sanction of the projects and schemes for the development of Jodhpur Region or any part thereof; execution of the project and schemes directly by itself or through a local authority or other agency; coordinating execution of projects or schemes for the development of Jodhpur Region supervision or otherwise ensuring adequate supervision over the planning and execution of any project or scheme the expenses of which in whole or in part are to be met from Jodhpur Region Development Funds; preparing schemes and advising the concerned authorities, department and agencies in formulating and undertaking schemes for development of agriculture horticulture, forestry, dairy development, transport, communication, schooling, cultural activities, sports, medicine, tourism and similar other activities; to prepare Master Plan for traffic control and management; devise policy and programmes of action for smooth flow of traffic and matters connected therewith; undertaking housing activity in Jodhpur Region etc., are essentially the functions, which promote the welfare of the genera....
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....t ineligible to claim registration under Section 12A read with Section 12AA of the Act of 1961. As a matter of fact, it is not even the case of the Revenue that the object of general public utility sought to be achieved by constitution and establishment of the JDA as such, involve carrying on of any activity for profit and therefore, it is immaterial if some income is earned by ancillary and incidental activities, which as per the mandate of the relevant statute, is used for achieving or implementing such object. The genuineness of the activities of the JDA, which are regulated by the provisions of the JDA Act and the Rules made thereunder, cannot be doubted. Thus, the order passed by the ITAT holding the JDA, Jodhpur entitled for registration under Section 12A read with Section 12AA of the Act of 1961, does not suffer from any infirmity or illegality." 8. In case of Director of Income Tax vs Bharat Diamond Bourse (supra), the Hon'ble Supreme Court held as under: "Though the assessee earned certain income by reason of hiring of locker facilities as incidental to the main custom clearance facilities made available to members as well as non-members, and debited the expenses incurr....
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....to be valid, lets' examine the facts of the present case to determine the dominant objectives and purpose of the assessee society. The assessee society has been formed to carry out the following objects: 10. During the course of proceedings before the ld CIT(E), it was submitted that the main object of the society is as set out in the deed of constitution of the society. The society is perusing the said object since its inception and providing free medical help by arranging free medical camp of expert doctors, free food to poor and needy patients and also providing concessional ambulance facilities to patient to carry them to the nearest hospital. Further the society is also arranging many camps and other activities in the field of medical help. The registered office of the Society is at Pratapgarh where none of the good medical facility is available and in case of emergency, even ambulance is also not available to carry the patients to the nearby metro place for better medical facilities. To cater to the need of ambulance, the society has purchased and operated ambulance on cost recovery basis and it has been categorically submitted that none of the individuals involved in the fu....
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....e or business for a cess, fee or any other consideration. In the instant case, the assessee society is carrying out charitable activities in the field of medical relief to the poor and needy section of the society and not in the field of general public utility and thus, the proviso to section 2(15) is not applicable and thus cannot be invoked. 13. Before parting, we may drawn reference to the decision of the Coordinate Agra Benches in case of Samarpan Samiti (supra) where reference has been drawn to the CBDT Circular no. 11/2008 dated 19.12.2008 and relevant findings read as under: "26. We may also refer a C.B.D.T. Circular No.11/2008 dated 19.12.2008 wherein the applicability of the commercial activities in respect of charitable purpose has been clarified. The said circular is reproduced as below:- "2.2. 'Relief of the poor' encompasses a wide range of objects for the welfare of the economically and socially disadvantaged or needy. It will, therefore, include within its ambit purposes such as relief to destitute, orphans or the handicapped, disadvantaged women or children, small and marginal farmers, indigent artisans or senior citizens in need of aid. Entities who ha....