Late Devyani Kamlesh Ruparel Public Charitable Trust, Ahmedabad V. The CIT-III, Baroda

ITA 1982/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5903 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-04-2017
• Assessment Year: misc
• Appeal Filed On: 03-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAGADISH
• Assessee Lawyers: ANIL R SHAH
• Keywords: Charitable institution
• Section: 80G

Judgement Text

, *CH *CH*CH *CH* ** * IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER I.T.A. NO. 1982/AHD/2014 LATE DEVYANI KAMLESH RUPAREL PUBLIC CHARITABLE TRUST, 2 ND FLOOR, SAMIR BUILDING, KOTHI CHAR RASTA, KOTHI, BARODA. VS. COMM. OF INCOME- TAX-III 2 ND FLOOR, AAYAKAR BHAVAN, RACE COURSE CIRCLE, BARODA. ! PAN/GIR NO. : AABTL 0313 N ( ' / APPELLANT ) .. ( #' RESPONDENT ) '$ APPELLANT BY : SHRI ANIL R. SHAH, A.R. #'%$ / RESPONDENT BY : SHRI JAGADISH, CIT D.R. & ' (%) * / DATE OF HEARING 28/04/2017 +,-. %) * / DATE OF PRONOUNCEMENT 15/05/2017 / O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-III, BARODA, DA TED 13/05/2014. 2. ASSESSEE HAS BEEN TAKEN FOLLOWING GROUNDS OF APP EALS: (I). THE CIT-III, BARODA HAS ERRED BOTH IN LAW AND IN FACT AND IN INTERPRETING VARIOUS CLAUSES OF THE TRUST AND THERE BY REFUSING TO GRANT REGISTRATION U/S.80G OF THE ACT DESPITE THE F ACT THAT THE ITA NO.1982/AHD /2014 LATE DEVYANI KAMLESH REPAREL PUBLIC CHARITABLE TRUS T VS. CIT - 2 - APPELLANT TRUST HAD FULFILLED ALL NECESSARY CONDITI ON TO QUALIFY THE SAME. (II). IT IS SUBMITTED THAT THE TRUST IS ALREADY ENG AGED IN CHARITABLE ACTIVITIES AS PER THE TRUST DEED AND THAT THE CIT-I II, BARODA HAS ALSO FAILED TO GIVE A SHOW CAUSE NOTICE BEFORE REFU SING TO GRANT REGISTRATION U/S. 80G OF THE ACT. 3. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- LATE DEVYANI KAMLESH RUPAREL PUBLIC CHARITABLE TRUS T, MADE AN APPLICATION IN FORM NO. 10G FOR APPROVAL UNDER SECT ION 80-G(5)(VI) OF THE INCOME TAX ACT, 1961, WHICH WAS RECEIVED ON 15/ 11/2013. 4. IN ORDER TO PROCESS THE APPLICATION, INFORMATION /DETAILS WERE CALLED FOR VIDE BY THE CIT. AS PER TRUST DEED, OBJECT OF T HE TRUST IS AS UNDER: IN THE MEDICAL FIELD TO ESTABLISH ALL KINDS OF HOS PITAL NURSING HOME TO RUN AND MAINTAINED TO START SUCH ACTIVITIES AND TO MANAGE IT ESPECIALLY TO GIVE TREATMENT TO PATIENT SUFFERING FROM CANCER AND TO PROVIDE MEDICAL FACILITIES AND FOR THIS PURPOSE IF REQUIRED TO PROVIDE THE FACILITIES OF BLOOD BANK OR X-RAY, SONOGRAPHY C.T. SCAN MRI FACILITIES. 5. FROM THE ABOVE, IT CAN BE SEEN THAT OBJECT DOES NOT INCLUDE ANY CHARITABLE ACTIVITY. RUNNING A SPECIALIZED HOSPITAL PER SE CANNOT IN ITSELF BE A CHARITABLE ACTIVITY. THE APPELLANT WAS ACCORDI NGLY ASKED TO INFORM THE ACTIVITIES OF THE TRUST. ITA NO.1982/AHD /2014 LATE DEVYANI KAMLESH REPAREL PUBLIC CHARITABLE TRUS T VS. CIT - 3 - 6. THEN IN REPLY FOR NOTICE, TRUST STATED THAT MEDI CAL FACILITIES: THE OBJECT OF THE TRUST IS TO DEVELOP AND MAINTAIN THE HOSPITAL AND NURSING HOME ESPECIALLY FOR THE CANCER PATIENTS. IN THE YEAR 2012-13, TRUST HAS DONATED MEDICINES WORTH RS.20,403/- TO TH E CANCER PATIENT. 7. LEARNED CIT REJECTED THE APPLICATION STATING THA T SINCE THE ACTIVITY OF TRUST DOES NOT SHOW ANY CHARITABLE PURPOSE AND A LSO DOES NOT RULE OUT THAT HOSPITAL IS PURELY FOR COMMERCIAL PURPOSES, TH E APPLICATION FOR REGISTRATION FOR THE PURPOSE OF 80G CANNOT BE GRANT ED. 8. WE HAVE HEARD BOTH THE PARTIES THAT TRUST IS FOR M IN ORDER TO HELP CANCER PATIENTS. IN THE PAST THEY HAVE ALSO DONATED MEDICINES TO THE CANCER PATIENTS. IT IS SPECIFICALLY MENTIONED IN TH E OBJECT THAT IN HOSPITAL THEY WILL ALSO PROVIDE FACILITY OF BLOOD BANK OR X- RAY, SONOGRAPHY, C.T. SCAN, MRI TO THE PATIENTS. SAME WILL BE DONE ON CHA RITABLE BASIS. 9. LEARNED DR RELY ON THE ORDER OF THE AUTHORITY BE LOW. 10. WE ARE OF THE CONSIDERED OPINION THAT THIS IS A FIT CASE WHERE APPROVAL UNDER SECTION 80-G(5)(VI) HAS TO BE GRANTE D TO THE ASSESSEE. 11. ORDER OF THE LEARNED CIT(A)-III, BARODA IS SET ASIDE. ITA NO.1982/AHD /2014 LATE DEVYANI KAMLESH REPAREL PUBLIC CHARITABLE TRUS T VS. CIT - 4 - 12. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 15/05/2017 SD/- SD/- IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ IZEKSN DQEKJ EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN YKS[KK LN YKS[KK LN YKS[KK LN YKS[KK LNL; L; L; L; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; (PRAMOD KUMAR) ( MAHAVIR PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 15/05/2017 PRITI YADAV, SR. PS ! ' COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 012) & 3) / CONCERNED CIT 4. & 3) 45 / THE CIT(A)-III, BARODA. 5. 67 8)'12 *12. 0 / DR, ITAT, AHMEDABAD 6. 8 9: ( GUARD FILE. # $ / BY ORDER, # 6)) //TRUE COPY// %/$ &' ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD TRUE COPY 1. DATE OF DICTATION ..28/04/2017 (DICTATION-PAD 3 PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28/04/2017 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 12/05/2017 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 12/05/2017 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER