TaxTMI 
TaxTMI 
TaxTMI 
2021 (12) TMI 448
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....son that the appellant is pursuing only Medical Research. Medical Research is a charitable activity as defined u/s.2(15) of the Income Tax Act and hence the registration ought to have been granted. 3. The learned CIT erred that the object clause of the appellant contains many clauses which are commercial in nature. The object of the appellant is only to undertake charitable activities without any profit motive. 4. The learned CIT erred in rejecting the application for registration u/s.12AA of the Income Tax Act for the reason that the area of operation is in contravention to sec. 11(1)(a) of the Income Tax Act." "ITA NO.8/Del/2021 1. That order under section 80G(5)(vi) dt. 29.09.2017 is passed without any notice of hearing to the assessee which against the principles of natural justice hence liable to be set aside/quashed. 2. That order under section 80G(5)(vi) dt. 29.09.2017 rejecting Form No.10G read with section 80G of Income tax Act, 1961 is bad in law and void ab-initio. 3. That since section 12A and section 80G of the Income tax Act, 1961 operates separately hence section 12A approval rejection can not ipso facto apply to rejection for section 80G approval. 4. T....
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....ded to hold inter alia that firstly, all medical research does not qualify for the label 'education' in the sense of the term explained by the Hon'ble Apex Court in the case of Sole Trustee, Loka Sikshan Sansthan 101 ITR 234; secondly, that the intention to create global infrastructure is in contravention of section 11(1)(a) of the Act and even after 4 years of incorporation, applicant has not carried out any research/outcase; thirdly, that the applicant has failed to bring on record how its activities are meant to percolate down to the public at large; and fourthly, that there is possibility that researches which would be carried out in future within the premises of settler company would in turn further enhance commercial potential of the hospital; and thereby rejected the application u/s 12A of the Act. 8. So far as first ground of rejections of application moved by the applicant/assessee u/s 12A of the Act by the ld. CIT(E) that all medical research does not qualify for the label 'education' in the sense of the term explained by the Hon'ble Apex Court in the case of Sole Trustee, Loka Sikshan Sansthan 101 ITR 234 is concerned, when we examine the aims and objects of the applica....
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....primarily means that the predominant object must be to promote welfare of general public. An ancillary activity, if any, to that general one performed by the institution would not render such institution "non-charitable". 11. Moreover, section 12AA of the Act provides for procedure for registration as to how ld. CIT (E) will provide registration after getting satisfaction with the aims and objects of the society and not to sit on the chair of AO as all these facts ought to be taken care by the AO at the time of assessment. Declining the registration on the ground that medical research to be carried out in the hospital of settler company would convert the charitable activities into commercial activities is mere surmises, hence not sustainable in the eyes of law. 12. Not only this, sub-section (3) of section 12AA empowers the ld. CIT(E) to cancel the registration of the Trust if activities of Trust are not in consonance with its charitable aims and objects enshrined in the constitution. So, at the stage of according registration u/s 12AA of the Act examining the aims and objects like AO is not permissible. 13. So far as second reason of rejections u/s 12A of the Act by the ld. CIT....
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....8 4289393 4005203 4119153 1893417 Net (5618) (5618) (72424) (27078) (289393) (5203) (30847) (93417) *All the donations are from Artemis Medicare Services Limited (PAN AAFCA0130M) 15. Receipt of donations and appropriation of funds show that the applicant Trust is not merely on the paper but keeping its activities alive for further carrying out the charitable activities enshrined in its aims and objects. So, the reason recorded by the ld. CIT (E) is not sustainable to reject the application moved by the applicant. 16. So far as third ground taken by the ld. CIT (E) for rejection of application u/s 12A of the Act that the applicant has failed to bring on record how its activities are meant to percolate down to the public at large is concerned, again it is a matter of common knowledge that medical research carried out in any corner of the world is in the larger interest of the general public one way or the other. But, in the instant case, applicant Trust is not pursuing one activity rather many of charitable aims and objects are there on its Board as enshrined in its constitution. Again, all these facts and queries raised by the ld. CIT(E) are to be taken care of at th....