IDHAYANGAL CHARITABLE TRUST,COIMBATORE vs. CIT (EXEMPTIONS), CHENNAI
आयकर अपीलȣय अͬधकरण, ‘सी’ Ûयायपीठ, चेÛनई
IN THE INCOME TAX APPELLATE TRIBUNAL
‘C’ BENCH, CHENNAI
Įी जॉज[ जॉज[ के, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय के सम¢
BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND
SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No.: 2706/CHNY/2024
M/s. Idhayangal Charitable Trust,
Site 10 & 11, Mathuram, Natchara
Classic, Phase-I, Era Mohan Nagar,
Kalapati,
Coimbatore – 641 002. PAN: AABTI 4322G
Vs.
The Commissioner of Income Tax (Exemption),
Chennai.
(अपीलाथᱮ/Appellant)
(ᮧ᭜यथᱮ/Respondent)
अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Y. Sridhar, FCA
ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri R. Clement Ramesh Kumar, CIT
सुनवाई कᳱ तारीख/Date of Hearing : 06.02.2025
घोषणा कᳱ तारीख/Date of Pronouncement : 18.02.2025
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee trust is directed against the Commissioner of Income
Tax
(Exemptions) order dated
29.08.2024, rejecting assessee’s application seeking registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’).
2. The assessee has filed concise grounds on 01.11.2024. The concise grounds raised read as follows:-
1. The CIT (Exemption) has failed to appreciate that, the appellant trust formed only to provide medical relief hence, it falls under 1st six limps of the section 2(15) of IT Act 1961 and falls under "per se category".
The CIT (Exemption) has failed to appreciate that, the very object of the trust & its division named Madhuram Diabetic And Thyroid Centre, is medical relief as provided in the form 10AB.
The CIT (Exemption) simply presumed that certain revenue receipts of its division converted into donation in order to not attract proviso to sec 2(15) without any facts on record.
The CIT (Exemption) simply arrived at ratio of 34% as per provision of section 2(15) based on certain presumptions and surmises.
The CIT (Exemption) has not appreciated the theme and jurisprudence of the judgement of Hon'ble Supreme court of India in case of Ahmedabad Urban Development Authority" where in which health is considered as "per se category" and not clearly in general public utility area.
The CIT (Exemption) failed to appreciate these settled principles as observed in the case of "M/s. Additional Commissioner Of Income- Tax Vs Surat Art Silk Cloth Manufacturers on 19 November, 1979" by the Hon'ble supreme court of India
The CIT (Exemption) failed to appreciate the department circular no. 11 of CBDT dated 19.12.2016 which is categorically observed that in para 3.1 and para 3.2, which clearly says that, the newly inserted proviso Sec 2(15) it applied only to the entity who pursue the advancement of any other public utility and not to that 1st 6 limps of section 2(15).
The CIT (Exemption) also failed to appreciate that the appellant trust does not fall under the General public utility but clearly falls under the 1st 6 limbs of Sec 2(15) hence the ration 20% is not applicable.
The CIT(Exemption) has not appreciated the fact that as per the circular no.21 of 2016. Even if they wrongly treated the Appellant Trust as General Public Utility even in such case The CIT(Exemption) can deny only the exemption but not go for cancellation of 12AB.
Brief facts of the case are as follows:
The assessee is a public charitable trust established by a registered trust deed dated 07.03.2017. The assessee trust was established by Dr.Krishnan Swaminathan, a medical professional (Endocrinologist) who focuses on treatment of diabetic patients, along with his wife, who is also a medical professional as Authors of the Trust. The main object of the assessee trust is to provide medical relief to patients suffering from diabetics especially for poor children with insulin needing Type 1
diabetics. The assessee trust was registered u/s.12A and 80G of the Act vide orders dated 16.10.2017 and 05.03.2018 respectively. During the financial year 2020-21, the trust deed was amended. Consequently, the trust filed Form 10A for renewal of registration u/s.12A & 80G of the Act. The said applications were approved in Form 10AC vide order dated 31.05.2021 for the period of 5 years from AY 2022-23 to 2026-
27. In July, 2021, the founders of the trust decided to establish a unit in the name and style of “Madhuram Diabetic and Thyroid Centre
(MDTC)” vide resolution dated 16.07.2021. Further, the assessee had amended few clauses of the trust deed and the same has been registered with the sub-