Commissioner of Income-tax v. Christian Medical College
[Citation -2014-LL-0911-23]

Citation 2014-LL-0911-23
Appellant Name Commissioner of Income-tax
Respondent Name Christian Medical College
Court HIGH COURT OF PUNJAB & HARYANA
Relevant Act Income-tax
Date of Order 11/09/2014
Judgment View Judgment
Keyword Tags substantial question of law • renewal of registration • charitable institution • religious nature
Bot Summary: The assessee filed an application in Form No. 10G for renewal of exemption under section 80G of the Act on December 22, 2010. The Tribunal while allowing the appeal of the assessee observed that the assessee was registered as a charitable institution under section 12A of the Act and the registration granted thereunder was valid even for the current assessment year. The Tribunal further noticed that the assessee-society was established and run by a minority Christian community but as the aim and object of the assessee was to train professionals in the field of medical and health care and also to provide medical facilities in their hospitals to all persons of any caste, creed, race, language, religion, etc. The activities carried out by the assessee were charitable in nature. The assessee had been running and maintaining Christian Medical College, Christian Dental College, Christian College of Nursing and other institutions where medical care and training for the professionals was being provided by the assesseesociety to all irrespective of their caste, creed, race, religion, etc. The findings recorded by the Tribunal read as under of the Act. The grounds of appeal raised by the assessee are, thus, allowed.


JUDGMENT judgment of court was delivered by Ajay Kumar Mittal J.-This appeal has been preferred by Revenue under section 260A of Income-tax Act, 1961 (in short, "the Act"), against order dated August 30, 2013, annexure A. II passed by Income-tax Appellate Tribunal, Chandigarh Bench "A", (in short, "the Tribunal') in I. T. A. No. 620/Chd/2012 (Christian Medical College v. CIT [2013] 27 ITR (Trib) 308 (Chandigarh)) for assessment year 2012-13, claiming following substantial questions of law: "(i) Whether, on facts and in circumstances of case, hon'ble Income-tax Appellate Tribunal was justified in law in holding that assessee is entitled to registration under section 80G(5) of Income-tax Act, 1961? (ii) Whether, on facts and in circumstances of case, hon'ble Income-tax Appellate Tribunal was correct in law in ignoring fact that primary aim of society is to train Christian men and women as health professionals and, thus, society was providing benefit of medical educational primarily to persons of Christian faith?" few facts relevant for decision of controversy involved as narrated in appeal may be noticed. assessee-society was established in financial year 1949-50 and had been granted registration under section 12A of Act. It had also been granted exemption under section 80G of Act and last exemption was granted, vide order dated July 28, 2008, up to assessment year 2011-12. assessee filed application in Form No. 10G for renewal of exemption under section 80G of Act on December 22, 2010. Commissioner of Income-tax, Ludhiana (CIT) on perusal of memorandum of association and bye-laws found that aims and objects of society were in violation of Explanation 3 to section 80G(5)(iii) of Act. It was held by Commissioner of Income-tax that aims and objects of assessee-society were of religious nature and since "charitable purpose" does not include any purpose, whole or substantially whole of which is of religious nature. exemption granted was withdrawn by Commissioner of Income-tax, vide order dated May 25, 2012, annexure A.1. Aggrieved by order, assessee filed appeal before Tribunal. Vide order dated August 30, 2013, annexure A. II, Tribunal allowed appeal. Hence, instant appeal by Revenue. We have heard learned counsel for appellant and perused record. Tribunal while allowing appeal of assessee observed that assessee was registered as charitable institution under section 12A of Act and registration granted thereunder was valid even for current assessment year. Tribunal further noticed that assessee-society was established and run by minority Christian community but as aim and object of assessee was to train professionals in field of medical and health care and also to provide medical facilities in their hospitals to all persons of any caste, creed, race, language, religion, etc., activities carried out by assessee were charitable in nature. assessee had been running and maintaining Christian Medical College, Christian Dental College, Christian College of Nursing and other institutions where medical care and training for professionals was being provided by assesseesociety to all irrespective of their caste, creed, race, religion, etc. findings recorded by Tribunal read as under (page 316 of 27 ITR (Trib)): "In facts of present case, we find that assessee was registered as charitable institution under section 12A of Incometax Act and said registration is being continued to be granted to assessee-society even for year under consideration. primary aim of assessee-society was to train men and women as health professionals in spirit of Jesus Christ and said facility of training health professionals and medical care was to be provided without consideration of caste, race, creed, language and religion. Though in primary paragraphs of objects of assessee-society, it is mentioned that primary aim was to educate and train Christians men and women as health professionals but in actual fact, assessee-society has been running and maintaining Christian Medical College, Christian Dental College, Christian College of Nursing and other institutions, though on ideals and principles in spirit of Christian services but for training professionals of any caste, creed, race, religion, etc. Similarly, medical care is being provided by assessee-society to all irrespective of their caste, creed or religion, etc. learned authorised representative for assessee was directed to furnish information in respect of concessions being allowed to patients by assessee-society and necessary evidence has been filed on record in this regard which clearly establishes case of assessee that said facilities of providing concessional medical and health care is provided to persons of any caste, creed or religion. assessee-society was established and run by minority Christian community but as aim and object of assessee-society is to train professionals in 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., we are of view that activities carried out by assessee-society are charitable in nature and, consequently, assessee is entitled to registration under section 80G(5) of Act. We find no merit in order of Commissioner of Income-tax in this regard and reversing same, we hold that renewal of registration under section 80G(5) is to be granted to assessee-society. grounds of appeal raised by assessee are, thus, allowed." In light of findings recorded by Tribunal, which have not been shown to be illegal or perverse in any manner, no substantial question of law arises. appeal stands dismissed. *** Commissioner of Income-tax v. Christian Medical College
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