SATHI FOUNDATION, MUMBAI V. D.I.T. (EXEMPTION), MUMBAI

ITA 7769/MUM/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0841 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 03-07-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 28-12-2012
• Court: TRIBUNAL
• Department Lawyers: MANJUNATHA R SWAMY
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI SANJAY GARG , J M ./ ITA NO . 7769 / MUM/20 1 2 ( / ASSESSMENT YEAR : 20 13 - 14 ) M/S SATHI FOUNDATION, 129, ECSTASY BUSINESS PARK, CITI OF JOY, MULUND (W). VS. DIT(EXEMPTION), MUMBAI ./ ./ PAN/GIR NO. : A A K TS 4701 Q ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI NITESH JOSHI /REVENUE BY : MS.MANJUNATHA R.SWAMY / DATE OF HEARING : 03 /0 7 /2015 / DATE OF PRONOUNCEMENT 31/07 /2015 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF DIT(E) DATED 31 - 10 - 2012 , FOR THE A.Y.20 13 - 14 IN THE MATTER OF ORDER PASSED U/S. 12AA(1)(B)(II) R.W.S.12A OF THE I.T.ACT . 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FO R DECLINE OF REGISTRATION U.S.12A OF THE ACT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A TRUST REGISTERED WITH CHAR ITY COMMISSIONER , APPLIED FOR REGISTRATION U/S. 12A A OF THE ACT IN PRESCRIBED FORM NO. 10A ON 11 - 4 - 2012. THE TRUST HAS BEEN CONSTITUTED VIDE TRUST ITA NO. 7769 / 12 2 DEED DATED 3 - 12 - 2010 AND REGISTERED WITH CHARITY COMMISSIONER, MUMBAI ON 31 - 3 - 2012 . THE TRUST HAS OBJECT WHICH INCLUDE MEDICAL RELIEF AND PROVIDING EDUCATION FOR PREVENTION, TREATMENT AND MANAGEME NT OF DISEASES. THE DIT(E) DECLINED THE REGISTRATION ON THE PLEA THAT THE ASSESSEES OBJECTS ENABLING CONDUCT OF MARKET RESEARCH AND DEVELOPMENT FOR PHILANTHROPIC PURPOSES IN ASSOCIATION WITH OTHER CHARITABLE INSTITUTIONS AND ASSOCIATION INCLUDING INTER - N ATIONAL BODIES IS NON - CHARITABLE. THE DIT(E) ALSO OBSERVED THAT THE MARKET RESEARCH COULD BE CONDUCTED BY THE ASSESSEE IN ASSOCIATION WITH AN INTERNATIONAL BODY, ACCORDINGLY, THERE IS A POSSIBILITY OF APPLICATION OF INCOME OUTSIDE INDIA. 4. AGAINST THE AB OVE DECLINE OF REGISTRATION, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. WE HAVE CONSIDERED RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT THE ASSESSEE IS A CHARITABLE TRUST ENGAGED IN MARKE T RESEARCH AND DEVELOPMENT FOR PHILANTHROPIC PURPOSES IN ASSOCIATION WITH OTHER CHARITABLE INSTITUTIONS AND ASSOCIATION INCLUDING INTERNATIONAL BODIES. IT WAS FORMED BY THE TRUST DEED DATED 3 - 2 - 2010. ITS MAIN OBJECTS INCLUDE MEDICAL RELIEF AND PROVIDING E DUCATION FOR PREVENTION, TREATMENT AND MANAGEMENT OF DISEASES AND FOR ACCOMPLISHMENT OF WHICH IT HAS CONDUCTED CAMPS ON AILMENTS LIKE DIABETES, ASTHMA, BLOOD PRESSURE AND THYROID DISORDERS CREATING AWARENESS, DIAGNOSING AND PRESCRIBING TREATMENT. FOR THE P URPOSE OF ACHIEVEMENT OF THIS OBJECT ASSESSEE CONDUCTED MARKET RESEARCH OF THE LOCATION WHERE SUCH CAMPS ARE TO BE ITA NO. 7769 / 12 3 HELD TO UNDERSTAND THE MEDICAL DIFFICULTIES BEING FACED BY THE PEOPLE OF THAT LOCATION. THIS OBJECT WAS DIRECTLY CONNECTED WITH THE OBJECT OF PROVIDING MEDICAL RELIEF AND EDUCATING THOSE CONNECT ED WITH MEDICAL PROFESSION AND GENERAL PUBLIC FOR PREVENTION, TREATMENT AND MANAGEMENT OF DISEASES. ACCORDINGLY, IT CANNOT BE SAID THAT OBJECT OF CONDUCTING MARKET RESEARCH COULD BE REGARDED AS NON - CHARI TABLE OR COMMERCIAL IN NATURE. THE DOUBT OF DIT(E) TO THE EFFECT THAT ASSESSEE MAY APPLY ITS INCOME FOR PURPOSES OUTSIDE INDIA BECAUSE AS PER PARAGRAPH 6(VI) OF ITS AIMS AND OBJECTS IT WOULD CONDUCT MARKET RESEARCH IN ASSOCIATION WITH INTERNATIONAL BODIES, IS WITHOUT ANY BASIS . WE FOUND THAT THE ASSESSEE MAY ASSOCIATE ITSELF WITH INTERNATIONAL BODIES FOR CONDUCTING OF MARKET RESEARCH BUT THE ASSOCIATION WOULD BE FOR CONDUCTING SUCH RESEARCH IN INDIA. CONDUCTING ANY RESEARCH OUTSIDE INDIA IS NOT CONTEMPLATED BY THE AIMS AND OBJECTS OF THE ASSESSEE IN ITS TRUST DEED. EVEN THE LETTER DATED 14 - 6 - 2012 PRODUCED BY THE ASSESSEE BEFORE THE DIT(E) , ADDRESSED BY IT TO SOVAY PHARMA INDIA LTD. IT WAS A REQUEST TO PROVIDE SUPPORT TO IT IN MAKING PATIENT CARE IN INDIA THR OUGH TRAINING OF HEALTH CARE PROVIDERS. IT WAS ALSO CLARIFIED BY THE ASSESSEE THAT ITS BROAD OBJECTIVE TO PROVIDE PATIENT CARE, AWARENESS AND TRAINING AT ALL LEVELS OF PUBLIC HEALTH. THROUGH THIS LETTER IT WAS ALSO CONVEYED THAT ASSESSEE CONSTANTLY WORKING AMONG SLUMS, ORPHANAGES, OLDAGE HOMES, PUBLIC HOSPITALS AND GOVERNMENT INSTITUTIONS IN ORDER TO IMPROVE HEALTH CARE AWARENESS AND BE A FRIEND, PHILOSOPHER AND A GUIDE TO BOTH PATIENTS AND CARE GIVERS. ITA NO. 7769 / 12 4 6. IN VIEW OF THE ABOVE DISCUSSION, WE DO NOT FIND AN Y MERIT IN THE ACTION OF THE DIT(E) OF REGISTRATION U/S.12AA OF THE I.T.ACT. ACCORDINGLY, THE DIT(E) IS DIRECTED TO ALLOW THE REGISTRATION TO THE ASSESSEE U/S. 12AA OF THE I.T.ACT. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 31/07 / 201 5 . SD/ - SD/ - ( ) ( SANJAY GARG ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 31/07 / 201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASS TT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//