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2012 (6) TMI 327 - AT - Income TaxRegistration u/s 12A and 80-G - denial on ground that there was extravagance of expenses by holding conference of Doctors at five star hotel and there is no benefit to the common public, also, donors are pharmaceutical companies and some of them have deducted TDS - assessee, registered charitable trust, created by eminent cardiologists with object of research in the field of medicines in general and cardiac medicines - Held that:- If the objects of the trust are duly incorporated and charitable in nature and conform to the various rules and regulations; the assessee trust maintains its books of account and the genuineness of the account is established by the society, in normal circumstances the registration should be granted to the Trust u/s 12AA and 80-G. In the given facts and circumstances the conference organized by the assessee is authorized by the objects of the Trust; there is no ban or embargo whether conference can be held in five star hotel or not. Therefore, the adverse inference drawn by the DIT(E) is not proper inasmuch as the trustees will have a discretion to organize the conference at a place and in the manner which is befitting into the participants and objects. Donations presumed as Commercial receipt - Held that:- Only because donors are pharmaceutical companies and they deducted TDS, will not convert a donation into a commercial receipt on the basis of presumptive inferences. As long as the assessee has credited the amount as donations and issued donation receipts, in our view, the same cannot be held to be commercial receipt. We hold that the assessee is eligible for registration u/s 12AA and 80-G, which is granted - Decided in favor of assessee.
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