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TMI Blog2013 (6) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... . The said two questions of law are as under : "1. Whether, on facts and in law, the hon'ble Income-tax Appellate Tribunal is right in holding that the sale of blood amounts to medical relief within the purview of section 2(15) of the Income-tax Act, 1961 ? 2. Whether, on facts and in law, the hon'ble Income-tax Appellate Tribunal is right in holding that the Commissioner of Income-tax cannot withdraw recognition under section 80G(5) on the basis of wrong application submitted by the assessee for renewal of recognition when the facts stated in the order itself prove that the assessee is not eligible for recognition under section 80G(5) of the Income-tax Act, 1961 ?" The facts in this case are as under: The respondent is a registered tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Therefore, the Revenue is before this court. We heard arguments on both the sides and perused the entire appeal papers. It is necessary at this stage to extract section 2(15) of the Act and the same reads as under: "'charitable purpose' includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of general public utility : Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. (l) To establish cultural centre, etc. (m) To collect and disseminate knowledge, etc. Further, the respondents have filed audited accounts for the years 2007-08, 2008-09, 2009-10 and the same reads as under: Assessment year Amount received from providing blood Expenses incurred 2007-08 797488 890653 2008-09 752230 1085878 2009-10 1135890 1576246 A combined reading of the memorandum of association and the audited accounts for the above assessment years manifestly makes it clear that the activity carried on by the respondent-trust is a charitable purpose. Further, the second proviso to section 2(15) of the Act specifies that the aggregated value of the receipts from the activities referred to there is Rs. 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that the audited balance-sheets of the respondent-trust for the assessment years 2007-08, 2008-09, 2009-10 specify the receipts and also the expenditure. Firstly, the receipts specified therein for the relevant assessment years are less than the amount specified in the second proviso to section 2(15) of the Act. On the other hand, the expenditure incurred by the respondent during the assessment years was in excess of the receipts. As such no profit was made by the respondent during the relevant assessment years. Therefore, it cannot be said that the activity of the respondent-trust is not charitable purpose and on the other hand it was commercial. The Tribunal by examining these aspects of the matter rightly set aside the finding of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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