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2011 (12) TMI 232 - AT - Income TaxCharitable Trust u/s 12A - charitable dispensary and medical/health centre - denial of application moved on 17.02.2011 for renewal of exemption u/s 80G(5)(vi) – Trust last renewal granted for the period 1.04.2008 to 31.3.2011 – DIT(E) contended that since trust is charging fees from patients hence it is engaged in any activity of trade, commerce or business as per sec 2(15) - Held that:- The Proviso to clause (vi) of sec. 80G(5) imposing the limitation of five years has been omitted by the Finance Act, 2009 w.e.f. 1.10.2009 to provide that the approval once granted shall continue to be valid in perpetuity. Circular No. 5 dated 3.06.2010 clarifies that the existing approval expiring on or after 1st October, 2009 will be deemed to have been extended in perpetuity unless specifically withdrawn. Exemption was expiring in the instant case after 1-10-2009, the deeming provision of perpetuity clause stood attracted. That being so, the exemption granted u/s 80G would remain operative unless withdrawn. Further, Proviso to sec. 2(15) is applicable in respect of charitable institutions engaged in the activity of advancement of any other object of general public utility. Relief of the poor, education and medical relief are outside the purview of the aforesaid Proviso. Therefore, applying the provisions of Proviso to sec. 2(15) of the Act to the present case by the DIT(E) is also totally misplaced. Further, nominal fees are charged from patients and charging of fee from the patients in itself cannot be considered to be a commercial activity. - Decided in favor of assessee.
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