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2020 (6) TMI 55 - KARNATAKA HIGH COURTExemption u/s 80G(5)(iii) - renewal of exemption denied as primary object of the Trust among others, primarily was for the benefit of Catholics and others may be admitted without any distinction of caste or creed - whether the respondent is doing charitable work without any discrimination on the basis of caste, creed or religion? - HELD THAT:- Clause 3 of the Memorandum of Association which uses the expression “primarily for the benefit of Catholics”. Others may be admitted without distinction of caste and creed” has been thoroughly examined by the Department several time and only on the satisfaction, the Tribunal granted exemption under Section 80G(5)(iii) of the Act to the Assessee. No explanation is forthcoming on behalf of the appellants – Revenue as to why the exemption was granted to the respondent - Society for the previous years from 1963 till the year 2009. From the perusal of paragraph No.7.3 of the order passed by the Tribunal, it is recorded that, even though the object of formation of Trust was primarily for the benefit of Catholics, the Tribunal has taken into account the statistics in the financial year 2008-09 and has found that the assessee – Trust’s Hospital has treated 8,51,127 patients of non-Christian community out of 9,00,406 total patients received treatment which works out to 94.5%. Similarly, in the financial year 2009-10, the total number of patients received various treatments in the hospital is 9,07,641 and out of which, 8,50,146 patients did not belong to the Christian community. Thus, this fact belies the finding recorded by the Director of Income Tax (Exemptions) that the Assessee - Trust had served only Catholic community and only run for the benefit of the Catholics. Out of total number of 685 students admitted in the medical college, 195 students were from Hindu community, 24 from Muslim and the remaining were from various sects of Christian community. Similarly, the number of staffs employed in its various institutions such as Research Institute, Medical College, Hospital etc., were from other communities also. In paragraph No.7.4 of the order of the Tribunal, it has been held that the assessee – Trust has been serving the people on humanity basis in its noble profession by rendering timely treatment to the needy without discriminating the caste, creed, community etc. The findings recorded by the Tribunal are based on meticulous appreciation of the evidence on record which does not call for our interference. Assessee is held entitled for renewal of exemption under Section 80G(5)(iii) of the Act from the year 2009. - Decided in favour of assessee.
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