2014 (10) TMI 581 - HC - Income Tax

Entitlement for registration u/s 80G(5) Primary aim of Society charitable or not Society used to train Christian men and women as health professionals Held that - The Tribunal was rightly of the view that the assessee was registered as a charitable institution u/s 12A of the Act and the registration granted thereunder was valid even for the current AY - The primary aim of the assessee society was to train men and women as health professionals in the spirit of Jesus Christ and the facility of training health professionals and medical care was to be provided without consideration of caste, race, creed, language and religion - The assessee society was established and run by a minority Christian community, but as the aim and object of the assessee society is to train professionals in the field of medical and health care and also to provide medical facilities in their hospital to all persons of any caste, creed, race, religion etc., the activities carried out by the assessee society are charitable in nature and consequently, the assessee is entitled to the registration under section 80G(5) of the Act thus, the renewal of registration u/s 80G(5) is to be granted to the assessee society the order of the Tribunal is upheld Decided against revenue.

Summary

Issues: Appeal under Section 260A of the Income Tax Act, 1961 against the order of Income Tax Appellate Tribunal regarding registration under Section 80G(5) of the Act and the charitable nature of the society's activities.

Analysis:

Issue 1: Registration under Section 80G(5) of the Income Tax Act
The appeal was filed by the revenue challenging the order of the Income Tax Appellate Tribunal (ITAT) granting registration under Section 80G(5) of the Income Tax Act, 1961 to the assessee society. The Commissioner of Income Tax had withdrawn the exemption granted to the society under Section 80G of the Act, citing that the aims and objects of the society were of a religious nature. However, the Tribunal observed that the society was registered as a charitable institution under Section 12A of the Act and was engaged in training health professionals and providing medical facilities to all, irrespective of caste, creed, race, religion, etc. The Tribunal found that the activities of the society were indeed charitable in nature, as it operated institutions like the Christian Medical College and provided medical care without discrimination. The Tribunal concluded that the society was entitled to registration under Section 80G(5) of the Act based on the charitable nature of its activities.

Issue 2: Charitable Nature of Society's Activities
The Tribunal noted that the primary aim of the society was to train professionals in the field of medical and health care, without any consideration of caste, creed, race, language, or religion. While the society was established and run by a minority Christian community, it provided medical care and training to individuals of all backgrounds. The Tribunal highlighted that the society maintained institutions like the Christian Dental College and Christian College of Nursing, offering services based on Christian principles but open to professionals of any caste, creed, race, or religion. The Tribunal examined the concessions provided by the society to patients, confirming that concessional medical and health care services were extended to individuals without discrimination. Based on these observations, the Tribunal concluded that the activities of the society were indeed charitable in nature, warranting registration under Section 80G(5) of the Act.

In conclusion, the High Court upheld the Tribunal's decision, stating that the findings were not illegal or perverse, and therefore, no substantial question of law arose. The appeal by the revenue was dismissed, affirming the registration of the society under Section 80G(5) of the Income Tax Act, 1961.