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2014 (5) TMI 113 - AT - Income TaxWithdrawal of exemption – Scope of section 2(15) of the Act – Opportunity of being heard – Exemption u/s 80G of the Act - The assessee is engaged in making available health services - This is as per the National Family Planning Programme under the policy of the Ministry of Health and Family Welfare, Government of India - The promotion expenses incurred are partially reimbursed by the Ministry of Health and Family Welfare, Government of India, in order to support the National Family Planning Programme activities - The assessee is receiving grants/donations from Marie Stopes International (UK) and these donations comprise the major income of the assessee - the activity of the assessee is aided by the Government of India itself, in the Ministry of Health, in pursuance of its policies and National Family Planning Programme - the activity carried on by the assessee cannot at all be said to be a commercial activity - the activity is squarely covered by the provisions of Section 2 (15) of the IT Act. The conditions of Rule 11AA of the IT Rules, 1962 stand duly complied with - It has not been shown otherwise - the assessee company stands granted registration u/s 12A of the Act and approval u/s 80G (5) of the Act was granted to it - Relying upon N.N. Desai Charitable Trust vs. CIT [1999 (5) TMI 11 - GUJARAT High Court] and Sonepat Hindu Educational Charitable Trust vs. CIT [2005 (5) TMI 52 - PUNJAB AND HARYANA High Court] - while dealing with an application u/s 80G (5) of the Act, the scope of inquiry extends to eligibility to exemption and that registration u/s 12AA of the Act by itself is sufficient proof that the institution is created or established for charitable purposes – thus, the assessee’s application is allowed – Decided in favour of Assessee.
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