STEMI India Charitable Trust, CHENNAI V. CIT, Coimbatore

ITA 1687/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57779 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 13-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR I V IJAYAKUMAR IRS
• Assessee Lawyers: T N SEETHARAMAN
• Keywords: Charitable institution
• Section: 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE DR. O. K. NARAYANAN, VICE PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 1687/MDS/2011 ASSESSMENT YEAR : -- M/S. STEMI INDIA CHARITABLE TRUST, SITE NO. 204-205, AVANASHI ROAD, GOLDWINS, POONGOTHAI NAGAR, KALPATTI VILLAGE, CIVIL AERODROME POST, COIMBATORE -641 014. V. THE COMMISSIONER OF INCOME-TAX-I, COIMBATORE. [PAN: AAKTS2437D] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N. SEETHARAMAN, ADVOCATE RESPONDENT BY : DR. I. VIJAYAKUMAR, IRS (CIT- DR) DATE OF HEARING : 02-01-2012 DATE OF PRONOUNCEMENT : 03/01/2012 O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX-I, COIMBATORE REFUSING T O GRANT REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 VIDE AN OR DER IN C. NO. 127(228)/12A- STEMI/CIT:1-CBE/11-12 DATED 30-8-2011. I.T.A. NO. 1687/MDS/2011 2 2. SHRI T.N. SEETHARAMAN, ADVOCATE REPRESENTED ON B EHALF OF THE ASSESSEE AND DR. I. VIJAYAKUMAR, LEARNED CIT-DR REPRESENTED ON B EHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE APPELLANT, M/S. STEMI INDIA CHARITABLE TRUST WAS A TRUST CREATE D BY A TRUST DEED DATED 15-02- 2011 BY TWO DOCTORS WHO ARE RENOWNED CARDIOLOGISTS AT COIMBATORE. IT WAS THE SUBMISSION THAT THE TRUST WAS CREATED FOR THE PURPO SE OF DEVELOPMENT OF THE STEMI PROGRAMME AS ALSO TO EDUCATE THE PUBLIC IN THE MEDI CAL FIELD IN REGARD TO THE STEMI MANAGEMENT AND STEMI CARE IN INDIA AS ALSO TO PROVI DE CHARITABLE DISPENSARIES, HOSPITALS, CLINICS, MEDICAL CAMP AND CENTERS TO GIV E MEDICAL RELIEF TO POOR AND MOST BACKWARD PEOPLE. IT WAS THE SUBMISSION THAT THE AP PLICANT TRUST HAD APPLIED FOR REGISTRATION AS A CHARITABLE TRUST UNDER SECTION 12 AA ON 04-04-2011. IT WAS THE SUBMISSION THAT THE DETAILS CALLED FOR BY THE LEARN ED CIT WERE SUBMITTED. HOWEVER, THE LEARNED CIT REFUSED TO GRANT THE REGISTRATION U /S 12AA ON THE GROUND THAT THE TWO DOCTORS WHO HAD CREATED THE TRUST WERE VERY BUS Y DOCTORS AND THEY WOULD NOT HAVE THE TIME AT THEIR DISPOSAL TO DO REAL CHARITAB LE ACTIVITIES. IT WAS THE SUBMISSION THAT CONSEQUENTLY THE GENUINENESS OF THE TRUST AND ITS INTENTION TO CARRY OUT CHARITABLE ACTIVITIES WERE DOUBTED. IT WAS THE FURTHER SUBMISSION THAT THE LEARNED CIT WAS ALSO OF THE VIEW THAT THE MEANING O F STEMI WAS ALSO NOT PROVIDED. IT WAS THE SUBMISSION THAT STEMI IS A SERIOUS FORM O F HEART ATTACK AND ITS ABBREVIATION IS ST-ELEVATION MYOCARDIAL INFRACTION . IT IS IDENTIFIED BY AN ELECTROCARDIOGRAM AND IF THE TEST SHOWED ST-ELEVATI ON, IT WAS ON ACCOUNT OF THE I.T.A. NO. 1687/MDS/2011 3 COMPLETE OBSTRUCTION OF A CORONARY ARTERY WHICH REQ UIRED TREATMENT BY EMERGENCY ANGIOPLASTY. IT WAS THE SUBMISSION THAT THE DOCTOR S WHO ARE THE FOUNDERS OF THE TRUST WERE RENOWNED CARDIOLOGISTS, AS HAS BEEN RECO GNISED BY THE LEARNED CIT AND THEY WERE ALSO DOING CHARITABLE ACTIVITIES BY PROVI DING FREE CONSULTATION AND CARE. IT WAS THE SUBMISSION THAT JUST BECAUSE THE FOUNDERS O F THE TRUST WERE RENOWNED CARDIOLOGISTS AND WERE BUSY PROFESSIONALS, IT DID N OT MEAN THAT THEY COULD NOT DO CHARITABLE ACTIVITIES. IT WAS THE FURTHER SUBMISSI ON THAT THE APPLICANT TRUST HAD PURCHASED THE NECESSARY EQUIPMENT AND THE SOFTWARE FOR THE PURPOSE OF DETECTING OF THE STEMI HEART ATTACKS AND THEIR INTENTION TO DO CHARITABLE ACTIVITY DID EXIST AND THE FACT THAT THEY HAD PURCHASED THE EQUIPMENT SHOW ED THAT THEIR INTENTION WAS GENUINE AND IN LINE WITH THE OBJECTS OF THE TRUST. IT WAS THE SUBMISSION THAT THE APPLICANT TRUST MAY BE GRANTED REGISTRATION UNDER S ECTION 12AA OF THE ACT. 4. IN REPLY, THE LEARNED DR SUBMITTED THAT THE TRUS T DEED DID NOT SPECIFY AS TO HOW THE DOCTORS WOULD BE ATTENDING TO THE OBJECTS O F THE TRUST. IT WAS THE FURTHER SUBMISSION THAT STEMI HEART ATTACK REQUIRED HOSPITA LIZATION AND REQUIRED ANGIOPLASTY AS ALSO PROVIDING STENTS WHICH WERE EXP ENSIVE. IT WAS THE SUBMISSION THAT IDENTIFYING THE STEMI HEART ATTACKS WAS NOT A C HARITABLE ACTIVITY. IT IS A TREATMENT OF THE STEMI HEART ATTACK BY PROVIDING FRE E MEDICAL CARE, IF ANY, THAT COULD BE CONSTRUED AS A CHARITABLE ACTIVITY AND THI S HAS NOT BEEN SHOWN. HE VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED CIT. I.T.A. NO. 1687/MDS/2011 4 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE DEFINITION OF THE STEMI, AS PROVIDED BY THE LEARNED AUTHORISED REPRESE NTATIVE AT PAGE 16 OF THE PAPER BOOK, CLEARLY SHOWS THAT STEMI HEART ATTACK IS A SERIOUS HEART ATTACK. THIS FORM OF HEART ATTACK AS MENTIONED IN THE DEFINITION AND TREATMENT FOUND AT PAGE 16 OF THE ASSESSEES PAPER BOOK SHOWS THAT IT REQUIRES IMMEDIATE TREATMENT AND THE HEART ATTACK IS IDENTIFIED BY THE TEST CALLED AN EL ECTROCARDIOGRAM WHICH IS AN INSTRUMENT AND WHICH IS ALSO A MOBILE INSTRUMENT. HOWEVER, IDENTIFICATION BY ITSELF DOES NOT PROVIDE A CURE. IDENTIFICATION IS JUST A DIAGNOSIS. DIAGNOSING THE HEART ATTACK WOULD BE OF NO USE UNLESS A CURE CAN BE PROV IDED TO IT. THUS DIAGNOSING THE HEART ATTACK CANNOT BE CONSIDERED AS A CHARITABLE A CTIVITY AS THE TREATMENT HAS ALSO TO BE DONE THROUGH EMERGENCY ANGIOPLASTY AND STENTI NG. THE EMERGENCY ANGIOPLASTY AND STENTING, ADMITTEDLY, CANNOT BE DON E BY USING MOBILE OPERATION THEATRES. THIS REQUIRES SPECIALIZED EQUIPMENT. A PERUSAL OF THE OBJECTS OF THE TRUST SHOWS THAT THE ASSESSEE DOES HAVE THE OBJECT OF UTI LIZING HOSPITALS UNDER THE INSURANCE AND STATE AND CENTRAL GOVERNMENT INSURANC E SCHEMES AS ALSO TO ESTABLISH, RUN AND DEVELOP HOSPITALS HAVING WELL OR GANIZED AND TRAINED STEMI TEAMS. THE PROVIDING OF THE EMERGENCY TREATMENT BE ING THE ANGIOPLASTY AND STENTING WOULD BE A CHARITABLE ACTIVITY. DIAGNOSIN G OF THE STEMI HEART ATTACK CANNOT BE CONSIDERED AS THE CHARITABLE ACTIVITY. H OWEVER, A PERUSAL OF THE PROVISIONS OF SECTION 12AA OF THE INCOME TAX ACT, 1 961 SHOWS THAT THE CIT ON RECEIPT OF THE REGISTRATION APPLICATION SHALL CALL FOR SUCH DOCUMENTS OR INFORMATION I.T.A. NO. 1687/MDS/2011 5 FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSAR Y IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTI TUTION. IN THE PRESENT CASE, THE LEARNED CIT HAS CALLED FOR THE DOCUMENTS AND INFORM ATION AND HE HIMSELF HAS ADMITTED THAT THE FOUNDER TRUSTEES ARE COMPETENT PE OPLE. IT IS ALSO ADMITTED BY THE LEARNED CIT THAT THE OBJECTS OF THE TRUST DO CONTAI N CHARITABLE INTENT. HOWEVER, THE LEARNED CIT HAS REFUSED TO GRANT THE REGISTRATION O NLY BECAUSE THE REPRESENTATIVE OF THE ASSESSEE COULD NOT EXPAND THE TERM STEMI AS A LSO ON ACCOUNT OF THE FACT THAT THE FOUNDER TRUSTEES ARE COMPETENT AND BUSY CARDIOL OGISTS WHO ARE EXPERTS IN THE FIELD AND ON THE ASSUMPTION THAT THEY WOULD NOT HAV E TIME TO ATTEND TO THE OBJECTS OF THE TRUST. THIS REASON OF THE LEARNED CIT IS A SUBSEQUENT EVENT TO THE GRANTING OF REGISTRATION. AT THE TIME OF REGISTRATION OF TH E TRUST ALL THAT IS REQUIRED TO BE VERIFIED IS REGARDING THE GENUINENESS OF THE ACTIVI TIES OF THE TRUST AS ALSO THE OBJECTS OF THE TRUST. BOTH THE OBJECTS AND GENUINENESS OF THE ACTIVITIES ADMITTED BY THE LEARNED CIT ARE CHARITABLE IN NATURE. IN THE CIRCU MSTANCES, WE ARE OF THE VIEW THAT THE LEARNED CIT ERRED IN NOT GRANTING THE REGISTRAT ION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. WE MAY FURTHER MENTION HERE THAT THE REASONS GIVEN BY THE LEARNED CIT FOR REFUSING TO GRANT REGISTRATION IS O N AN ASSUMPTION WHICH NEEDS TO BE VERIFIED AFTER THE ASSESSEE TRUST GOES INTO OPERATI ON, I.E. WHETHER THEY ARE PROVIDING ANY CHARITABLE ACTIVITY IN THE FORM OF ANGIOPLASTY AND STENTING AFTER DIAGNOSING THE STEMI CASES. OBVIOUSLY, IF THEY ARE NOT PROVIDING T HE EMERGENCY MEDICAL TREATMENT WHICH IS REQUIRED FOR TREATING A STEMI HEA RT ATTACK, THE LIBERTY WOULD BE I.T.A. NO. 1687/MDS/2011 6 AVAILABLE WITH THE LEARNED CIT TO WITHDRAW THE REGI STRATION AFTER ISSUING NOTICE TO THE ASSESSEE. IT CANNOT BE THE REASON FOR NOT GRAN TING THE REGISTRATION. IN THE CIRCUMSTANCES, THE LEARNED COMMISSIONER OF INCOME T AX IS DIRECTED TO GRANT THE ASSESSEE REGISTRATION U/S 12AA OF THE INCOME TAX AC T, 1961. IN THE CIRCUMSTANCES, THE APPEAL OF THE ASSESSEE IS ALLOWED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 03/01/2 012. SD/- SD/- (DR. O. K. NARAYANAN) (GEORGE MATHAN) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 03 RD JANUARY, 2012. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE