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Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE
Before: SHRI CHANDRA POOJARI
PER MADHUMITA ROY, JUDICIAL MEMBER
The instant appeal filed by the assessee is directed against the order dated 15.03.2023 passed by the Ld. Commissioner of Income Tax (Exemptions), Bangalore, (in short ‘CIT(E)’) under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2023-24.
Page 2 of (Indian Academy of Echocaridography Karnataka Chapter vs. CIT(Exemptions)
2. The appeal is barred by limitation for 8 days. An application for condonation of delay has already been filed by the appellant and the explanation made therein causing delay has been perused by us which seems to be genuine. Thus, delay is condoned.
We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record.
4. The short fact involved in this particular case is this that the appellant trust has filed application for registration under Section 12A in Form 10AB on 30th September, 2022. According to the Memorandum of Association, the Aims & objectives of the trust are as under:
To encourage and advance the knowledge, study and practice in echocardiography.
To promote research and stimulate interest in echocardiography by encouraging teaching and training programmers at various centres by seminars, conferences, publication of books, periodicals, pamphlets or magazines or any other literature relating to the science of echocardiography
3. To formulate guidelines for training in echocardiography.
Page 3 of (Indian Academy of Echocaridography Karnataka Chapter vs. CIT(Exemptions)
To lase and cooperate with any other association individual that has, either, objectives similar to or complementary, to those of the IAE, Karnataka Chapter.
5. To raise or borrow money or legacy of moveable property either with or without conditions to promote the objectives of the IAE, Karnataka Chapter as deems fit.
To construct maintain or alter any building, rooms or other structures occupied by the IAE Karnataka Chapter.
7. To engage individuals as may be found necessary or convenient for the conduct and management of the affairs of the IAE, Karnataka Chapter.
To do all such other acts as may be necessary, incidental, conducive to the attainment of the objectives or any of them.
During the hearing of the matter, the assessee was directed to submit certain documents as required for adjudication of the issue whereupon the financials for A.Ys. 2021-22 & 2022-23 were furnished. Upon perusal of the same, it appears that the assessee shown major income from sponsorship receipts. Further that, the major expenses were towards conference expenses. In fact, the sponsorship fees were received from various pharmaceutical companies/Medical equipment suppliers. The assessee received funds from Pharmaceuticals companies in the guise of sponsorship receipts and conducting conferences for the medical professionals which are prohibited by the said
Page 4 of (Indian Academy of Echocaridography Karnataka Chapter vs. CIT(Exemptions) regulations and the CBDT Circular dated 01.08.2012, the Ld. CIT(E) relying upon the Regulation 6.8 of 2002 amended on 10.12.2009 issued by the Medical Council of India rejected the registration under Section 12A of the Act due to non-compliance of the requirements of the said regulation 6.8 of 2002 made by the Medical Council of India.
6. Relevant to mention that the said regulation has been reproduced by the Ld.CIT(E) in the impugned order itself. Upon perusal of the same, it appears that conducting seminars/conferences for the medical professionals have never been prohibited either by the said regulation or by the CBDT Circular dated 01.08.2012 as relied upon by the Ld. CIT(E). It is pertinent to mention that the medical practitioners are forbidden from accepting gifts or freebies, which has not been taken into consideration by the Ld. CIT(E) while rejecting the claim of registration under Section 12A of the Act made by the appellant before us. Nowhere of the order speaks of expenditure on freebies to the medical professionals during conference conducted by the appellant. In that view of the matter, the basic ground relied upon by the Ld. CIT(A) while rejecting the claim of registration of the appellant trust is found to be not in accordance with law erroneous and baseless. In that view of the matter, the order impugned is found to be devoid of any merit and thus quashed. The Ld. CIT(E) is directed to grant
Page 5 of (Indian Academy of Echocaridography Karnataka Chapter vs. CIT(Exemptions) registration in the case of the assessee under Section 12A of the Act forthwith.
In the result, the appeal filed by the assessee is allowed.
[Order pronounced in the open court on 26th October, 2023.]