CIT-Exemption Vs Anesthesia Society (Rajasthan High Court)
The Rajasthan High Court considered an appeal under Section 260A of the Income Tax Act, 1961, challenging the Income Tax Appellate Tribunal’s order directing the Commissioner of Income Tax (Exemption) to grant registration to the respondent society under Section 12A of the Act. The Commissioner (Exemption) had rejected the society’s application for registration on the ground that it was constituted for the benefit of only one branch of medicine, namely Anaesthesia, rather than the entire medical fraternity.
The Revenue contended that the society’s activities were confined to Anaesthetists and, therefore, it was not entitled to registration under Section 12A. The ITAT, however, held that although the society catered to a particular branch of doctors, the benefit of its activities was not restricted to specified individuals. Instead, all doctors practising Anaesthesia in the districts of Sriganganagar and Hanumangarh could benefit from its activities. Relying upon the decisions in Ahmedabad Rana Caste Association vs. CIT and CIT vs. Jodhpur Chartered Accountants Society, the Tribunal directed grant of registration under Section 12A.
The High Court examined the principles laid down by the Supreme Court in Ahmedabad Rana Caste Association vs. CIT, wherein it was held that an object beneficial to a section of the public constitutes an object of general public utility. The Supreme Court had observed that a charitable purpose does not require benefiting the whole of mankind or every person in a country or State; it is sufficient if the intention is to benefit a section of the public distinguished from specified individuals, provided that the beneficiaries form an identifiable class united by an impersonal common quality.
