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TMI Blog2015 (2) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (hereinafter referred to as 'Act' in short). 3. Facts of the case in brief are that the assessee society filed an application on 29.01.2013 in Form No. 10A for seeking registration u/s 12A of the Act. The ld. DIT(Exemption) after perusing the details filed by the assessee had noted the following points: i) Yakult India Microbiota and Probiotic Science Foundation has been formed on 09.11.2011, primarily for providing a thrust to the field of probiotics in the country. It is stated that the foundation will channelize international knowledge and expertise in the field of probiotics and will promote collaborative research in the development of probiotics as well as foster and maintain research links with scientists of similar interest. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is foreign based and has set up their business in India. These FDRs have been given as security for the time being. iv) A perusal of the details of expenditure further reveals that the applicant has incurred these expenditure mainly to organize the seminars and to pay honorarium, perdiem expenses to the participants and travelling, boarding and lodging expenses to the faculty space/speakers. It is also noted that the founder members and governing council members also have been paid honorarium and travelling expenses for attending the governing body meeting and participating in these seminars. v) It is also noted that Dr. Neeraj Hajela, who is the secretary and treasurer of the society is in fact the employee Head - Science of Yakult Dano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of Section 2(15) of the I.T Act. In response the assessee explained as under: "1. That under the head honorarium paid to members of the Governing Body/Founder Members - the amount reflected in the income and expenditure account is nothing but the reimbursement of the expenses incurred by those members for attending the meeting/symposiums organized by the society. No honorarium has been paid on regular basis as fixed honorarium, therefore, there is no violation of utilization of funds for members of the Governing Body or Founder Members. 2. The clarification of money received from the bank against the guarantee given by Yakult Danone India Pvt. Ltd. is clarified that the society will repay the money taken as loan from the bank from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding the research. The ld. DIT(Exemption), ultimately without going into question whether the assessee foundation is doing any research work at all, concluded that the activity being carried out by the assessee society is in the vested interest of the commercial body/company Yakult Danone India (P) Ltd. She, therefore, rejected the application for registration u/s 12A of the Act. 7. Now the assessee is in appeal. The ld. Counsel for the assessee reiterated the submissions made before the ld. DIT(Exemption) and further submitted that the assessee society is engaged in the research activity for the benefit of public at large and published many research papers like Probiotics in Prevention of Lifestyle Disorders (copy of the same was furnish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ward-2, Sriganganagar Heart Care Management Vs DIT(Exemption), New Delhi Sikkim Manipal University of Health, Medical & Technological Sciences Vs CIT, Siliguri DIT Vs Foundation of Ophthalmic & Optometry Research Education Centre Shree Vile Parle Vardhman Sthanakvasi Jain Foundation Vs DIT(Exemption) ITO, Ward-1, New Delhi Vs Science Olympaid Foundation 8. In his rival submissions the CIT DR strongly supported the order of the ld. DIT(Exemption) and further stated that the documents in the form of book on Probiotics Prevention of Lifestyle Disorders and the newsletters \& literatures etc. which is claimed to have been distributed were not produced before the ld. DIT, therefore, these are the new documents furnished first time before t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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