Livesurge Medical & Research Trust Vs CIT (ITAT Chennai)
In Livesurge Medical & Research Trust vs CIT (Exemptions) before the Income Tax Appellate Tribunal, Chennai, the dispute concerned denial of registration under Section 12AB of the Income Tax Act, 1961. The assessee, a charitable trust formed on 15.07.2024, had applied for registration on 26.03.2025. Its stated objects included providing medical care at concessional or free rates, financial assistance for education and healthcare, promoting medical awareness and training, establishing healthcare institutions, supporting disadvantaged groups, and conducting educational and awareness programmes.
The Commissioner of Income Tax (Exemptions) rejected the application, holding that the trust’s activities were limited to a specific group (doctors), lacked public benefit, and reflected the principle of mutuality rather than charity. The CIT(E) relied on the financial statements, noting that income consisted mainly of membership fees and expenditure on conferences, concluding that no charitable activities had been undertaken and that funds were used for members’ benefit. Accordingly, the application was rejected under Section 12AB(1)(b)(ii)(B).
On appeal, the assessee contended that its objects were charitable and aimed at benefiting the public at large. It argued that denial of registration based solely on initial financials and limited activities in the first year was incorrect. The assessee submitted that proposed activities must also be considered for registration and that non-commencement of full-scale operations cannot imply lack of genuineness. Reliance was placed on judicial precedents stating that registration provisions require evaluation of both objects and proposed activities.
