DCIT (Exemption), New Delhi V. Indian Medical Association, New Delhi

ITA 4259/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2790 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 03-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHISH GOEL; RANO JAIN MS DEVINA SHARMA
• Keywords: Charitable institution
• Section: 80G; 12AA; 11

Judgement Text

ITA NO. 4259/DEL/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER & SHRI K.N. CHARY, JUDICIAL MEMBER ITA NO.-4259/DEL/2016 ( ASSESSMENT YEAR: 2012-13) DCIT(EXEMPTION) CIRCLE 1(1), E-2 BLOCK, PRATYAKSH KAR BHAWAN, DR. SHYAMA PRASAD MUKHERJEE CIVIC CENTRE, NEW DELHI. VS INDIAN MEDICAL ASSOCIATION IMA HOUSE, IP MARG, NEW DELHI. AAAT10290G ASSESSEE BY MS. RANO JAIN MS DEVINA SHARMA, ADV. & MR. ASHISH GOEL, CA REVENUE BY SH. ARUN KUMAR YADAV, SR. DR ORDER PER K. NARSIMHA CHARY, J.M. AGGRIEVED BY THE ORDER DATED 30.05.2016 IN APPEAL N O. 4/2015-16 REVENUE PREFERRED THIS APPEAL ON THE FOLL OWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT (A) HAS FAILED TO APPRECIATE THE FACT T HAT THE AO DENIED THE CLAIM OF EXEMPTION OF THE ASSESSEE ON THE FACT THAT ASSESSEE HAS NOT DONE ANY KIND OF MEDICAL RELIEF AND NEITHER DO THE OBJECTS OF THE ASSESSEE AUTHORIZE THE ASSESSE E TO EXTEND ANY KIND OF MEDICAL RELIEF BY WAY OF RUNNING OF ANY HOSPITAL, NURSING HOME OR SIMILAR INSTITUTIONS. DATE OF HEARING 19.12.2017 DATE OF PRONOUNCEMENT 22.12.2017 ITA NO. 4259/DEL/2016 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD. CIT (A) HAS FAILED TO APPRECIATE THE FACT T HAT THE CLAIM OF EXEMPTION WAS DENIED TO THE ASSESSEE AS THE ASSESSEE SOCIETY HAS MADE COMMERCIAL AGREEMENTS WITH CORPORATE ENTITI ES AND RECEIVING CONTRIBUTION FOR SPECIFIC ENDORSEMENT WHIC H WOULD RESULT IN THE SALE OF THEIR PRODUCTS. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEN D ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME HEARING. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS AN ASSOCIATION OF MEDICAL DOCTORS AND IS REGISTERED U/S 12AA ON 27.06 .1974 AND U/S 80G OF THE INCOME TAX ACT, 1961 (FOR SHORT CALL ED AS THE ACT) ON 31.08.2009. THE BASIC OBJECTIVE OF THE ASSESSEE WAS SAID TO BE TO PROMOTE MEDICAL SCIENCE AND IMPROVEMENT OF PUBLI C HEALTH AND MEDICAL EDUCATION ETC. THE ASSESSEE HAD FILED THE N IL RETURN AND DURING SCRUTINY, LD. ASSESSING OFFICER HAD DENIED E XEMPTION U/S 11 OF THE ACT MAINLY ON THE GROUND THAT THE ASSESSE E IS INVOLVED IN COMMERCIAL ACTIVITY AS THE ASSESSEE HAD RECEIVED ENDORSEMENT MONEY OF RS. 36,50,000/- BY UNDERSIGNING THE ATTRI BUTES OF PRODUCTS OF DABUR AND ABBOTT INDIA LTD., THAT ASSES SEE HAS ALSO RECEIVED SPONSORSHIP INCOME OF RS. 51,31,000/- AND RENTAL INCOME OF RS. 92,70,185, THAT THE RECEIPT OF SUCH N ATURE SQUARELY SATISFIES THE REQUIREMENT IN PROVISO TO SECTION 2(1 5) OF THE INCOME TAX ACT, 1961, AND THAT IN VIEW THEREOF SINCE THE A SSESSEE HAD RECEIPTS ARISING OUT OF ACTIVITY IN THE NATURE OF B USINESS OR COMMERCE AND ACCORDINGLY THE FIRST PROVISO TO SECTI ON 2(15) OF THE ITA NO. 4259/DEL/2016 3 ACT IS APPLICABLE IN THIS CASE AS THE RECEIPTS ARE MORE THAN RS. 10 LACS. 3. IN APPEAL LD. CIT (A) HELD THAT THE ASSESSEE IS ALSO COVERED BY THE CASE OF ITPO VS. DGIT (E) W.P.C. NO. 1872/20 13 DATED 22/01/2015 AND ASSESSEES OWN CASE OF INDIAN MEDICA L ASSOCIATION VS. ADIT IN ITA NO. 4291/DEL/2012 DATED 20.02.2015 FOR THE AY 2009-10 IN WHICH IT WAS HELD THAT THE AS SESSEE IS NOT INVOLVED IN ANY TRADE, COMMERCE OR BUSINESS AND IS TOTALLY INVOLVED IN CHARITABLE ACTIVITY AND FALLING WITHIN THE DEFINITION OF CHARITABLE PURPOSE U/S 2(15) OF THE ACT UNDER THE H EAD MEDICAL RELIEF. THE ASSESSEE HAD ALSO BEEN GRANTED RELIEF ON IDENTICAL ISSUE FOR THE AY 2011-12 VIDE APPEAL NO. 20/2014-15 /311 DATED 28.08.2015. HENCE, REVENUE IS BEFORE US IN THIS AP PEAL. 4. WE HAVE PERUSED THE MATERIAL PAPERS ON RECORD IN CLUDING THE ORDERS OF THE TRIBUNAL IN ASSESSEES OWN CASE F OR THE ASSESSMENT YEARS 2009-10, 2010-11 & 2011-12 IN ITA NOS. 4291/DEL/2012, 2091/DEL/2014, 6076/DEL/2015 RESPECT IVELY. FOLLOWING THE ORDER OF THIS TRIBUNAL IN ITA NO. 429 6/DEL/2012 FOR THE AY 2009-10, LD. CIT (A) HELD THAT THE ASSESSEE IS NOT INVOLVED IN ANY TRADE, COMMERCE OR BUSINESS AND IS TOTALLY I NVOLVED IN CHARITABLE ACTIVITY FOLLOWING WITHIN THE DEFINITION OF CHARITABLE ITA NO. 4259/DEL/2016 4 PURPOSE U/S 2(15) OF THE ACT UNDER THE HEAD MEDICA L RELIEF AND CONSEQUENTLY GRANTED RELIEF TO THE ASSESSEE. SUBSE QUENTLY FOR THE ASSESSMENT YEARS 2010-11 & 2011-12 THE TRIBUNAL FOL LOWED ITS OWN ORDER RENDERED FOR THE AY 2009-10. ABSOLUTELY THERE IS NO DISPUTE ON THIS FACTUAL MATRIX AND THE REVENUE HAS NOT BROUGHT TO OUR NOTICE ANY FACT TO TAKE A DIFFERENT VIEW. W E, THEREFORE, WHILE RESPECTFULLY FOLLOWING THE DECISIONS OF THE C OORDINATE BENCHES OF THIS TRIBUNAL FOR THE ASSESSMENT YEARS 2 009-10 TO 2011-12, HOLD THAT THE IMPUGNED ORDER DOES NOT SUFF ER ANY ILLEGALITY OR IRREGULARITY AND HAS TO BE UPHELD. W E, THEREFORE, FIND THAT THE APPEAL OF THE REVENUE IS DEVOID OF ANY MERITS AND IS LIABLE TO BE DISMISSED. WE, ACCORDINGLY, DISMISSED THE SAME. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.12.2017 SD/- SD/- (N.K. SAINI) (K. NARSIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMB ER DATED: 22.12.2017 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO. 4259/DEL/2016 5