Swasthya Bikash Samiti, Berhampur V. The CIT, Bhubaneswar

ITA 77/CTK/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90835 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-05-2015
• Assessment Year: misc
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RABIN CHOUDHURY
• Assessee Lawyers: P PARTHASARATHI
• Keywords: Charitable institution

Judgement Text

1 ITA NO.77/CTK/2014 , , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK B ENCH, CUTTACK , . . , BEFORE SHRI SUNIL KUMAR YADAV, JM & SHRI B.P.JAIN, AM ./ ITA NO.77/CTK/2014 SWASTYA BIKASH SAMITHI, MKCG MEDICAL COLLEGE AND HOSPITAL, BERHAMPUR. VS. THE CIT, BHUBANESWAR. ! ./ ' ./ PAN/GIR NO. ( !# / APPELLANT ) .. ( $%!# / RESPONDENT ) ' ) ) ) ) /ASSESSEE BY : SHRI P.PARTHASARATHI ) ) ) ) /REVENUE BY : SHRI RABIN CHOUDHURY * ' / DATE OF HEARING : 26 TH MAY, 2015 ,-. ' / DATE OF PRONOUNCEMENT 26 TH MAY,2015 / / / / / O R D E R PER B.P.JAIN(AM) THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER O F THE LD CIT, BHUBANESWAR DATED 2.1.2011. 2. THE ASSESSEE HAS RAISED AS MANY AS NINE GROUNDS OF APPEAL BUT IN FACT, PRESSED ONE ISSUE, THAT THE LD CIT HAS DENIED REGISTRATION U/S.12AA OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED AN APPLICATION IN FORM NO.10A FOR GRANT OF REGISTRATION U/S.12AA OF THE AC T. THE ASSESSEE SOCIETY IS REGISTERED 2 ITA NO.77/CTK/2014 UNDER THE SOCIETY REGISTRATION, ORISSA AMENDMENT AC T 1969. THE ASSESSEES ADVOCATE ALONGWITH SUPERINTENDENT OF MEDICAL COLLEGE SUBMITT ED THE AIMS AND OBJECTIVES AND MADE THE SUBMISSIONS WHICH WERE CONSIDERED BY THE L D CIT. AFTER CONSIDERING THE SAME, THE LD CIT REJECTED THE APPLICATION OF THE AS SESSEE U/S.12AA OF THE ACT. THE RELEVANT FINDINGS OF THE LD CIT ARE REPRODUCED HERE INBELOW: THOUGH THE WORD MEDICAL RELIEF IS INCLUDED IN THE DEFINITION OF CHARITABLE PURPOSE IN THE INSTANT CASE, IT IS NOTED THAT THOUG H MEDICAL RELIEF IS BEING PROVIDED BY THE SOCIETY THE SAME IS BEING PROVIDED FOR CONSIDERATION OR FEES IN THE FORM OF COLLECTION OF USER FEES FROM THE PATIENT WHO ARE COMING FOR TREATMENT. SUCH ACTION OF THE SOCIETY C AN BY NO STRETCH OF IMAGINATION TERMED AS CHARITABLE PURPOSE. THE ACTI VITIES CARRIED ON BY THE SOCIETY ALSO DOES NOT FALL IN THE CATEGORY OF ANY O THER OBJECT OF GENERAL PUBLIC UTILITY AS IT IS THE RESPONSIBILITY OF GOVER NMENT OF ODISHA TO PROVIDE MEDICAL RELIEF TO THE PATIENT COMING FOR TREATMENT TO THE MKCG MEDICAL COLLEGE, HOSPITAL. MOREOVER, NEITHER COPIES OF THE ANNUAL BUDGET NOR T HE ANNUAL REPORT REGARDING THE ACTIVITIES OF THE SOCIETY WERE PRODUC ED IN COURSE OF HEARING OF THE APPLICATION FILED FOR REGISTRATION U/S.12A A ND APPROVAL OF EXEMPTION U/S.80G (5)(VI) OF THE ACT. IN SHORT, THERE IS NO SYSTEM IN VOGUE FOR UTILIZING USER FEES COLLECTED FROM THE PATIENTS FOR REALIZING THE OBJECTIVES OF THE SOCIETY. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, I AM NOT I NCLINED TO THE VIEW THE SOCIETY AS A CHARITABLE INSTITUTION. THEREFORE, TH E APPLICATIONS FILED FOR REGISTRATION U/S.12A OF THE ACT AS WELL AS APPROVAL OF EXEMPTION US.80G(5)(VI) OF THE ACT ARE HEREBY REJECTED. 4. THE LD COUNSEL FOR THE ASSESSEE ARGUED THAT THE ASSESSEE IS CARRYING OUT THE CHARITABLE ACTIVITIES AND THE EXPLANATION AS REQUIR ED BY THE LD CIT WAS SUBMITTED AND, THEREFORE, PRAYED TO CANCEL THE ORDER OF THE LD CIT AND THE LD CIT BE DIRECTED TO ALLOW THE REGISTRATION U/S.12AA OF THE ACT. 5. THE LD D.R. RELIED ON THE ORDER OF THE LD CIT. 3 ITA NO.77/CTK/2014 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE BASIC OBSERVATION OF THE LD CIT WHILE REJECTING THE APPLICATION FILED IN FORM NO.10A OF THE ACT IS THAT MEDICAL RELIEF IS INCLUDED IN THE D EFINITION OF CHARITABLE PURPOSE U/S.2(15) OF THE ACT AND THE ASSESSEE SOCIETY IS PROVIDING TH E SAME BY COLLECTION OF FEES FROM THE PATIENTS WHO ARE COMING FOR TREATMENT AND BY NO STR ETCH OF IMAGINATION , IT CAN BE TERMED AS A CHARITABLE PURPOSE. IT DOES NOT FALL I N THE CATEGORY OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY AS IT IS THE RESPONSIBILITY OF GOVERNMENT OF ODISHA TO PROVIDE MEDICAL RELIEF TO THE PATIENT COMING FOR TREATMENT TO THE MKCG MEDICAL COLLEGE, HOSPITAL. THE LD CIT FURTHER OBSERVED THAT THE COP IES OF THE ANNUAL BUDGET AND COPIES OF ANNUAL REPORT REGARDING THE ACTIVITIES OF THE SO CIETY WERE NOT PRODUCED IN THE COURSE OF HEARING OF THE APPLICATION FILED FOR REGISTRATIO N U/S.12AAND, THERE IS NO SYSTEM OF VOGUE FOR UTILISING THE FEES COLLECTED FROM THE PAT IENTS FOR REALIZING THE OBJECTIVES OF THE SOCIETY. ON GOING THROUGH THE FACTS AND CIRCUMSTAN CES OF THE PRESENT CASE, WE ARE OF THE VIEW THAT IT IS FOR THE ASSESSEE TO SUBMIT THE EXPLANATION THAT THE ASSESSEE TRUST IS CARRYING OUT THE CHARITABLE ACTIVITIES AND COMES WE LL WITHIN THE DEFINITION OF SECTION 2(15) OF THE ACT AND ALSO WITHIN THE AIMS AND OBJECTIVES FOR WHICH THE SOCIETY HAS BEEN REGISTERED UNDER THE SOCIETY REGISTRATION, ODISHA A MENDMENT 1969. THE ASSESSEE HAS NOT PRODUCED CERTAIN DOCUMENTS AS MENTIONED HEREINA BOVE. THEREFORE, IT WILL BE IN THE INTEREST OF JUSTICE IF THE MATTER IS SET ASIDE TO T HE FILE OF THE LD CIT, WHO WILL REEXAMINE THE ISSUE AND DECIDE THE ISSUE DENOVO BUT BY AFFORD ING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE IN THE PROCEEDINGS BEFORE THE LD CIT AND PRODUCE ALL THE DOCUMENTS AS REQUIRE D BY THE LD CIT. THUS, ALL THE GROUNDS OF APPEAL OF THE ASSESSEE RAISED BEFORE US ARE ALLOWED FOR STATISTICAL PURPOSES. 4 ITA NO.77/CTK/2014 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 / 05/2015. SD/- SD/- ( ) (SUNIL KUMAR YADAV) ( . . ) (B.P.JAIN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK; DATED 26 /05/2015 B.K.PARIDA, SR. PS / / / / $' $' $' $' 2.' 2.' 2.' 2.' / COPY OF THE ORDER FORWARDED TO : / / / / / BY ORDER, SR. PRIVATE SECRETARY, , / ITAT, CUTTACK 1. !# / THE APPELLANT : SWASTYA BIKASH SAMITHI, MKCG MEDICAL COLLEGE AND HOSPITAL, BERHAMPUR. 2. $%!# / THE RESPONDENT.: THE CIT, BHUBANESWAR. 3. 3 ( ) / THE CIT(A), BHUBANESWAR. 4. 4 $' , / DR, ITAT, CUTTACK 5. 6 7* / GUARD FILE. %' $' //TRUE COPY//