SMT. VIMAL CHAWLA CHARITABLE TRUST,FARIDABAD V. CIT EXEMPTION, CHANDIGARH

ITA 196/CHANDI/2025

AI Insights

The case involves Smt. Vimal Chawla Charitable Trust, which appealed against the rejection of their application for approval under section 80G(5)(iii) of the Income Tax Act by the Commissioner of Income Tax (Exemption), Chandigarh. The primary contention was whether the hospital 'NIMS', run by the trust, operated for charitable purposes. The tribunal examined financial records and evidence of charitable activities presented by the trust. However, it was concluded that the hospital was profit-oriented, lacking substantial charitable activities or services.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716709 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 06-02-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUSUM BANSAL LD
• Assessee Lawyers: PANKAJ GUPTA LD
• Keywords: Charitable institution

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHANDIGARH VIRTUAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.196 /CHANDI/2025 Smt. Vimal Chawla Charitable Trust Sector 23-A Faridabad Haryana-121005 बनाम/ Vs. CIT (Exemption) CR Building, Himalaya Marg Sector 17-E, Chandigarh ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AACTS-6248-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Pankaj Gupta (CA) - Ld. AR ŮȑथŎकीओरसे/Respondent by : Smt. Kusum Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 06-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking approval u/s 80G(5)(iii) of the Act vide impugned order dated 13-12-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. Upon perusal of para 3.3 of the impugned order, it could be gathered that the assessee is running a hospital by the name ‘NIMS’ since its inception and providing medical and health care services. Though the assessee was running a hospital, it failed to furnish any Printed from counselvise.com 2 document to show that the hospital was being run for charity or providing servcies at nominal fees. The assessee had large surplus in Income & Expenditure for the year ending 31-03-2022. It was finally conldued by Ld. CIT(E) that the hospital had nothing to do with charity rather it was set up to earn profits. Accordingly, the application was rejected against whcih the assessee is in further appeal before us. 3. The assessee’s financial statements for FYs 2021-22 to 2023-24 has been palced on Page Nos.20 to 31 of the paperbook. The perusal of these financials would show that the assessee is always having large surplus of more than 13% in each of the three years. The donations being receievd by the assessee in FYs 2021-22 & 2022-23 are ‘nil’ wheres it has received nominal donations of Rs.8 Lacs only during FY 2023-24. No expenditure is shown to have been incurred on charity. Upon perusal of these financials, it could very well be concluded that the hospital is being run as a commercial organisation only. No element of charity is shown in the same. The only evidneces relied upon by Ld. AR are printed pamhplets for free mega health checkup camps on various dates which are coupled with few photographs. However, there no data is available for identification of patients, number of patients and charitable treatment offered by the assessee to these patients during these camps. The perusal of these documents hardly inspire any confidence in us to support the assessee’s plea of carrying out of charitable activities. This being so, no intereference is required in the impugned order rejecting the relevant registration application of the assessee. Printed from counselvise.com 3 4. The appeal stand dismissed. Order pronounced on 18-08-2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "