ITAT DELHI
Heart Care Management
V/s.
Director of Income-tax (E)
IT Appeal Nos. 5241 and 5242 (Delhi) of 2011
Date of Pronouncement- May 31, 2012
ORDER
R.P. Tolani, Judicial Member – These are two appeals by the assessee assailing refusal of registration u/s 12A and 80-G of the Income-tax Act. Common effective grounds in both the appeals are as under:
“1. The learned DIT has erred on facts and in law in refusing to grant registration u/s. 12AA to the appellant.
2. The learned DIT has erred on facts and in law in failing to appreciate the noble objects of the society to conduct research and training in the specialized area of cardiac rhythm disorders and to create awareness in the public about the same, without which the research itself would be of no use, unless people avail the benefit thereof.
3. The learned DIT has erred on facts and in law in failing to understand that the objects of the society are research for the medical benefit of the humanity at large, which is a charitable activity. The organization cannot function without donations and no body would give donations without the benefit of S. 80-G.
4. The learned DIT has erred on facts and in law in failing to link the papers of his own file and coming to the incorrect conclusion that the appellant has not complied with the requirements, which had already been complied.
5. The learned DIT has erred on facts and in law in failing to understand that for attracting the conference for medical development, there was no fee to be paid by delegates. It was an educational conference without fee. The sponsors donated the funds to the trust which was utilized for meeting the expenses of the conference, which is a common practice recognized by law for such charitable activities.
2. Brief facts are: The assessee is a registered charitable trust, created on 28-11-2011 by eminent cardiologist Dr. Balbir Singh Makkar, Patron Dr. Naresh Trehan along with other renowned cardiologists. The trust was constituted with object of research in the field of medicines in general and cardiac medicines in particular by way of research, experiment, treatment and awareness about the latest trend in medical field. The objects as enshrined in the Trust deed are as under:
(i) To carry out medical research and experiments by engaging in the research and development of all fields of medical sciences, and in all therapies of medical treatment, so as to afford medical relief in a better way.
(ii) To provide research facilities for carrying on research, basic and applied in all system and disciplines of medical and surgical knowledge, keeping in view the socio-medical and socio-economic needs of the afflicted community.
(iii) To found, establish or take over and/or otherwise conduct research institutions in all discipline of medical and surgical knowledge.
(iv) To encourage and develop biological and pharmacological standardization of indigenous medical plants.
(v) To encourage the discovery of new medical and/or surgical management of diseases and afflictions and to investigate and make known the nature and merits of investigations and findings and research in the aid field and to acquire any patent and licenses or other protective devices relating to the results of any discovery, investigations, findings or researches and to acquire any processes upon such terms as to manufacture and distribute for charitable purposes of any product developed, discovered or improved.
(vi) To provide, encourage, initiate or promote facilities for the discovery, improvement or development or new methods of diagnosis, understanding and prevention and treatment of diseases.
(vii) To conduct research and training in specialized areas of cardiac rhythm disorders’ for the diagnosis and treatment of arrhythmias.
(viii) To hold periodic scientific meetings and live demonstration workshops particularly on ‘Treatment of cardiac rhythm disorders.
(ix) To formulate teaching and training programs in centers owned/designated by the Trust to go through various aspects of electro physiology.
(x) To create a national course on ‘Heart Rhythm Disorders’.
(xi) To hold/organize public awareness workshops, lectures, programs, film shows etc. in any part of the world for public education, prevention, diagnosis and treatment of various dreaded diseases including Aids, Heart Disease, Heart Rhythm Disorders, cancer etc.
(xii) To create a link in the world for exchange programs in medical research and education.
(xiii) To invite eminent doctors from abroad for increasing the quality of medical services and training of Indian doctors.
(xiv) To publish a journal/Newsletter for disseminating knowledge and expertise in the field of medical and surgical research and treatment.
(xv) To do all such other things as are cognate to the objectives of the Trust or are incidental to or conducive to the attainment of the above objectives.”
2.1. Apart from these main objects, there are various incidental and ancillary objects. Assessee trust applied for registration u/s 12AA and 80G respectively on 31-3-2011 along with relevant documents, which reflected that the assessee trust had received donation of Rs. 81 lacs from various companies. Substantial part of the donation was utilized by the assessee trust in holding a two day conference on 19/20-2-2011 of the doctors called as “Rhythm to revival 2011”.
2.2. The Director of Income-tax (Exemptions) [“DIT(E)”], asked for the details about the donations and the expenditure, incurred for two days’ annual conference at hotel Leela, Gurgaon, where physicians from Rajasthan, Punjab, Haryana, Utter Pradesh, Uttrakhand and J&K participated. The assessee had incurred expenditure on accommodation and holding of the conference which are summarized as under:
