IN THE ITAT AGRA BENCH
Samarpan Samiti
V/s.
Commissioner of Income tax-II, Agra
IT Appeal Nos. 427 (Agr) of 2011 &
36 (Agr) of 2012
JUNE 22, 2012
ORDER
A.L. Gehlot, Accountant Member
These are two appeals filed by the assessee against two different orders dated 21.09.2011 and 19.12.2011 passed by the ld. CIT-II, Agra under sections 80G and 12AA of the Income Tax Act, 1961 (‘the Act’ hereinafter) respectively.
2. In these appeals, one issue is against refusing to grant exemption under section 80G(5) of the Act and another issue is in respect of withdrawal of the registration granted to the assessee society under section 12AA of the Act.
3. As stated above, the effective ground raised in both the appeals pertain to withdrawal of registration granted to the assessee society under section 12A of the Act and refusing renewal of exemption under section 80G(5) of the Act. Both the grounds of appeal are on identical set of facts and, therefore, these are decided as under :-
4. The brief facts of the case are that the assessee Samiti is a registered Society with Registrar of Society U.P. The assessee Samiti granted registration under section 12A/12AA of the Act since 01.04.1993 vide order dated 05.04.1994. Exemption under section 80G was also granted upto 2011. The CIT noticed that the assessee Samiti carries on business of running a Blood Bank, X-ray Centre, Physiotherapy Centre, Homoeopathic Dispensaries etc. The CIT found that the services provided by the Society/Samiti are of commercial nature. The CIT also gone through the objects of the Samiti and found that the objects of the Samiti are not for medical relief but are for general public utility. The CIT rejected the assessee’s contention observing that section 2(15) are very clear and unambiguous stating that if the Samiti or Society involves to carry out any activities in the nature of trading, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such Society. The CIT also examined the books of account of the society and noticed that every year the Samiti has substantial surpluses which shows that the work carried on by the Samiti has resulted in profits because of the fee charged by the Samiti, irrespective of nature of use of application of the income from such activity. The CIT withdrawn the registration under section 12A/12AA of the Act vide order dated 19.12.2011.
5. The assessee filed application for renewal of exemption under section 80G of the Act on 29.03.2011 as the original exemption granted under section 80G to the assessee was from 01.04.2008 to 31.03.2011. The CIT noted that the assessee has generated surplus income from its activities as under :-
