Agrasen Medical Relief & Research Society Vs ITO (E) (ITAT Jaipur)
ITAT Jaipur: Exemption u/s 11 Cannot Be Denied Merely for Non-production of 12AA Certificate; Jaipur ITAT Holds 80G Approval Implies Valid 12AA Registration; ITAT Jaipur: Fresh 12A(1)(ac)(i) Registration Confirms Existing 12AA Validity; ITAT: Corpus Donations Treated as Voluntary Still Eligible for Exemption When 85% Applied to Charitable Purposes; Jaipur ITAT: Medical Service Receipts Below 20% Not Commercial, Section 2(15) Proviso Not Attracted; ITAT Clarifies: Denial of Section 11 Exemption Invalid Without Proof That 12AA Registration Was Not in Force; ITAT Jaipur: Benefit of Exemption u/s 11 Allowed Following Consistency with Earlier Year’s Order; 80G Implies 12AA – Exemption Can’t Be Denied for Missing Certificate – ITAT Jaipur Allows Relief to Agrasen Medical Society.
The assessee-society, running Maharaja Agrasen Hospital, was denied exemption u/s 11 by the AO on the ground that it failed to furnish its registration certificate u/s 12A & that the corpus donation of ₹30.19 lakh was manipulated. The AO also treated receipts of ₹16.45 lakh from M/s Sigma Electric Manufacturing Corp. Pvt. Ltd. for medical camps as commercial income, thereby holding that its activities were not charitable u/s 2(15).
Before CIT(A), the assessee argued that approval u/s 80G was granted on the same date as its 12AA registration, & hence, denial of exemption merely for non-production of the certificate was unjustified. It further showed that even if the corpus donation was treated as voluntary, 87.87% of total receipts were applied for charitable purposes. The CIT(A), however, upheld the denial of exemption.
