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TMI Blog2015 (1) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... rding, without discrimination as to sex, nationality, caste, creed, language, or any other cause, medical relief and encouraging medical research and for that purpose. a) To offer medical assistance (drug, investigations, procedures, and infrastructure) to poor patients admitted under Pediatric Pulmonology services of PGI. b) To promote research leading to improvement in the health and care of Pediatric Pulmonology patients. c) Purchase of books, journal-printed or electronic, or other material for training of postgraduates in Pediatric Pulmonology. d) Providing fellowships to physician interested in Pediatric Pulmonology to visits other Indian/foreign centers of excellence an attend workshops/symposia/conference etc related to Pediatric Pulmonology. e) Holding workshops /symposia/conference etc. in Chandigarh in furtherance of the objectives of P3. f) Inviting Pediatric Pulmonology of International repute to train local Pediatric Pulmonology and as faculty in continuing medical education programs, symposia conference etc. organized by P3. g) To receive money from donors, philanthropists other trusts and organizations (including conferences/CME's etc) for f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax on perusal of the reply and documents on record found that the assessee trust came into existence on 6.1.2014 and there are four founder members of the trust, namely Dr.Meenu Singh, Dr.Joseph L. Methew, Dr.Pankaj C. Vaidya and Dr.Mandeep Walia. All the trustees are on regular pay roll of the P.G.I., Chandigarh, which is the Government Institution and none of the trustees made any contribution as settler of the trust. Further the financial statement for the year ending 31.3.2014 revealed that except expenses amounting to Rs. 11,635/- debited under the head 'medicine for poor patients', all other expenses debited in the income and expenditure are relating to conference only. The assessee failed to produce details of medicine distributed among the poor patients. It was, therefore, found the activities of the assessee trust are nothing but adventure in nature of the trade and does not fall in the definition of charity. Therefore, the application for registration under section 12AA of the Act was rejected. 5. We have considered the rival submissions and perused the material available on record. At the stage of grant of registration under section 12AA of the Act, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of Rs. 1520/- has been debited in the Income & Expenditure account. No proof, however, with regard to the claim regarding running of evening classes and expenses debited to the Income & Expenditure account has been furnished. 6. The CIT denied the registration to the assessee under section 12AA of the Act observing as under: "4.1 From the written submission and documents furnished by the counsel of the applicant society, it is seen that the society is only in the preliminary stage of making an application for registration under section 12AA of the Act and is yet to reach the secondary stage of having started charitable activities so as to enable the commissioner to come to the conclusion that the activities carried out by it are genuine and in accordance with its objectives. The Hon'ble Kerala High Court, in its decision in Self Employers Service Society Vs Commissioner of Income tax, 247 ITR 18 has held that "to grant registration under section 12AA, the CIT should insist that the Society has done charitable work during the first year of its operation itself. When the CIT exercises has jurisdiction under section 12AA while considering an application for registration und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to evade tax liability, as Shishu Niktan Model School has been granted registration and availing the benefit of tax. In view of the above, we find that the orders of the Commissioner of Income Tax and that of the Tribunal in declining the registration to the appellant are not sustainable in law. Consequently, while answering the substantial question of law in favour of the appellant, the present appeal is allowed." 8. The issue arising before us is identical to the issue before the Hon'ble Punjab & Haryana High Court and following the ratio laid down by the Hon'ble High Court we hold that the assessee is entitled to the registration under section 12AA of the Act. The grounds of appeal raised by the assessee are thus allowed. 9. In the result, the appeal filed by the assessee is allowed. 6. In this case the learned CIT (Appeals) denied the registration because no activities have yet started. However, the Tribunal followed the decision of the Hon'ble Punjab & Haryana High Court in which the society had not done any charity work and registration has been granted to the assessee. The aims and objects of the assessee trust as reproduced above, clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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