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2015 (9) TMI 440 - ITAT HYDERABADGrant of registration u/s 12AA denied - as per DIT(E)objects of assessee do not come under the purview of charitable purpose as defined u/s 2(15) and the entire activity of collecting sperm/egg, arranging facility for surrogacy, etc, which is in the nature of medical services are actually undertaken by M/s Diana Medical Services Pvt. Ltd. and assessee has been created only on paper - Held that:- Unless corroborative evidences are brought on record to establish that the entire activity of bringing donors, collecting sperm/egg, storage etc., has been solely undertaken by hospital, assessee's role cannot be ignored. Therefore, without making any enquiry to find out the exact nature of activity of assessee and the hospital, it cannot be presumed that the entire activity of collection of sperm/egg and utilization in treatment of infertile couples is the activity of hospital. For the aforesaid reasons, we are unable to approve the decision of ld. DIT(E) in refusing to grant registration u/s 12AA of the Act to assessee. As far as the first condition is concerned, there cannot be any doubt that aims and objects of assessee society are of charitable nature. The only other condition which is required to be satisfied is genuineness of its activities. On perusal of income and expenditure statement of assessee as well as other materials, it is not visible how assessee has created awareness amongst general public whether by holding seminars, workshops etc. or through any other mode, for collecting sperm/egg from donors. Assessee has also to explain how it maintains the sperm/egg bank, since, according to its own admission it does not have infrastructure facility for storage gametes. That being the case, assessee has to bring on record the terms and conditions on which it has utilized the facilities of a third party and the consideration paid for such utilization. Similarly, though, ld. AR submitted before us, the amount collected from childless couples, who undergo treatment for infertility are only voluntary contribution but he has not furnished details as to how many patients have received sperm/egg and what is the contribution made by each patient. This is very much essential to prove the fact that assessee is not undertaking any commercial activity of trading in sperm/egg, and it is a no profit organisation. Further, nature and purpose of operational grant received by assessee from hospital also needs to be explained clearly because the MoU between the assessee and the hospital provides for payment of consideration to assessee at mutually agreed rate for utilization of items taken from the bank. All these facts have to be brought on record by the society to dispel the doubts entertained by ld. DIT(E) that entire activity relating to collection and storage of gametes and utilization in treatment of infertility is carried on by the hospital and the activity is of a purely commercial nature. Since all these aspects have not at all been examined by ld. DIT(E) while rejecting assessee's application for grant of registration u/s 12AA matter requires re-examination by ld. DIT(E). - Decided in favour of assessee by way of remand.
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