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TMI Blog2018 (6) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... And Shri V. Durga Rao, Judicial Member Assessee by : Shri Narahari Biswal Revenue by : Shri K. J. Rao ORDER Per V. Durga Rao, J. M. This appeal filed by the assessee is directed against the order dated 7th July, 2017 of CIT(A) 9, Hyderabad for AY 2014-15. 2. Briefly the facts of the case are, assessee is a society formed with effect from 5th December, 1990 and it is registered u/s 12A of the Income-tax Act, 1961 (in short the Act ) on 19/12/1990. The memorandum of society is, unless the context otherwise requires, Health systems includes the professional, technological, behavioural, social, economic, cultural and other subsystems whose interrelated action contribute to the health of the people. The objects of the assessee are as under: 3. 1.1 To promote and provide for study of health systems, health policy, health services management, health economics and medical sociology. 3.1. 2 To identify processes that can work to improve the health of the people. 3.1.3 To observe processes that work amongst the functionaries and beneficiaries of the health care delivery system. 3.1.4 To look for Locally viable solutions and innovations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e delivery institutions. 3.1.24 To undertake research, training and provide consultancy services in policy development, application, monitoring or evaluation of antipoverty, child development and nutritional programmes as well as other rural development and social services sector programmes. 3.1.25 To establish and maintain libraries and information services to facilitate the study and application of the principles health services management, health economics, medical sociology and appropriate health policy, rural development, social services programmes etc. 3.1.26 To constitute or cause to be constituted Regional Branches at convenient centres in India to promote the objects of the Society 3.1.27 To cooperate with approved institutions and bodies for the purposes of helping the cause of improved and cost effective health care to people. 3.1.28 To offer prizes and to grants scholarships and stipends in furtherance of the objects of the Society, and 3.1.29 To do all such other lawful things as .or conductive or incidental to the attainment of the above objects. ~ 4. CERTIFICATES: Certified that the association is formed with no profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the people and it is a charitable in nature, hence, assessee is entitled for exemption u/s 11 of the Act. He further submitted that assessee society is a nonprofitable organisation and therefore the receipts received by the assessee from testing of the water cannot be considered as commercial activity. Further, he submitted that assessee society is working for the health of general public, particu8larly, testing of the water and helping the HMWSSB and HMWSSB in turn, supplying good quality of water to the public at large in the city of Hyderabad. He, therefore, submitted that the activity carried out by the assessee is to be considered as a charitable activity. Referring to the page 134 of the paper book, ld. Counsel submitted that the receipts of the assessee are income from projects of ₹ 4,43,138/- and expenses of ₹ 4,36,500/-. He submitted that income from services was ₹ 50,98,1390/- while expenditure was ₹ 50,73,799/- and the net income available to the assessee is only ₹ 50,850/- after deducting the expenditure. Therefore, the services rendered by the assessee to HMWSSB cannot be considered as commercial services as the assessee society render se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge. Therefore, the activity of the assessee cannot be considered as commercial activity. Ld. CIT(A) observed that there is no difference between assessee and other organisations such as diagnostic centres and road contracts and other such businesses. The diagnostic centres and road contacts are mainly based on the profit motive organisations, they concentrate on the profit making and not service oriented. In the case of the assessee, it is only service oriented i.e. taking care of public health, for which joined hands with HMWSSB for better supply of quality water to the public at large. Therefore, the comparison made by the CIT(A) is not proper. We find that the CIT(A) himself accepted that all the activities of the assessee relate to water testing only. From the observation of the CIT(A), it is clear that the activity of the assessee is only water testing, which is carried out in assessee s laboratory, which monitors water quality in the reservoirs and slum areas. The assessee s organisation also recognized by DSIR, SIRO, WHO and State Govts. It is a fact that assessee has participated in various research and consultation projects, education and training programmes etc. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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