TaxTMI 
TaxTMI 
2025 (5) TMI 1865
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.... the year 1996 for the purpose of carrying out charitable activities, viz, relief of the poor, education and medical relief and obtained an approval u/s 12A in April 2022 valid until AY 2026-27. The appellant- trust had filed an application in August 2024 in Form 10AB seeking approval u/s 80G. The ld. CIT (Exemption) has, however, rejected the application contending that "any activity of rendering any service, for a fee, irrespective of the nature of use and the aggregate receipts from such activity during the previous year, exceeds twenty per cent of the total receipts, then the activity should not be treated as charity". Hence, the present appeal. 2. The Id. CIT (Exemption) has failed to appreciate that the appellant trust was formed o....
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....2A of the Act in April 2022 which is valid up to A.Y. 2026-27. The assessee trust also filed an application in August, 2024 in Form 10AB seeking an approval u/s. 80G of the Act. The ld.CIT (E) has rejected the application by passing an order dated 28.11.2024 stating that the assessee has carried on a commercial activity by running a hospital by collecting fees from patients for medical services provided apart from having pharmacy sales. Further, the ld.CIT(E) contended that an activity of running any service, for a fee, irrespective of the nature of use having aggregate receipts from such activity during the previous year, exceeds twenty percent of the total receipts, then, the activity should not be treated as charity. Aggrieved by the ord....
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....ction 10(23C) of the Act if they carry on commercial activities. Whether such an entity is carrying on an activity in the nature of trade, commerce or business is a question of fact which will be decided based on the nature, scope, extent and frequency of the activity." 5. Further, the ld.AR drew out attention to the audited financials as on 31.03.2021, 31.03.2022 and 31.03.2023 (Page Nos.93 to 104 of the paper book) wherein the expenditure of the assessee was mainly on medical relief and services provided which includes payments made to the Doctors for running hospital. The ld.AR also filed a comparative chart of service fees collected from the patients for various medical treatments and also for lab charges comparing with the charges co....
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....side the order of ld.CIT(E) and grant approval under Section 80G of the Act. 8. Per contra, the Ld.CIT- DR has relied on the order of the ld.CIT (Exemption) and prayed for confirming the same. 9. We have heard the rival contentions and gone through the materials available on record and orders of the authorities below. It is an undisputed fact that the assessee is existing from 1996 and carrying on the activities of medical relief to the poor at rural areas of Kanyakumari district which had obtained registration under Section 12A of the Act valid up to Assessment Year 2026-27. Meanwhile, the assessee trust had filed an application for approval u/s. 80G(5) of the Act, which was rejected by the ld.CIT (E) stating that the activity of the Tru....