TMI Blog2013 (3) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, a charitable trust registered with Charity Commissioner, Maharashtra in the year 1974 was managing and operating Saifee Hospital providing medical services to the public. The assessee had been granted registration by the Director of Income Tax (Exemption) w.e.f. 01.04.2000. During the year under consideration, in the assessment framed u/s 143(3), the AO had rejected the exemption claimed by the assessee u/s 11 on the ground that the assessee made amendment in the trust deed. 2.2 On appeal, the Ld.CIT(A) held that the trust is eligible to claim the benefit u/s 11 on the reasoning that the object clauses in the original trust deed and the amended trust deed are identical. Aggrieved by the decision, the revenue is in appeal befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Also the Ld.CIT(A) has correctly observed that while filing form No.10A, it is required that the CIT should be informed regarding the change of the object of the trust, but, there is no time limit laid down in the Act or Rule for such compliance. It is needless to state that the assessee has complied with the requirement as per the Act though the same is in a latter point of time. 2.4.1 As regards, the reasoning of the AO that the assessee s registration u/s 12A is not valid or ceases to be in existence since the date of changes made in the trust deed relying on the decision of Allahabad High Court in the case of Allahabad Agricultural Institute Vs Union of India (291 ITR 116) for disallowing the claim, it is pertinent mention that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regard. Therefore, the AO treated that these activities as business activities of the assessee on the basis that the conditions of section 10(23C)(via) were violated. 3.1 On appeal, the Ld.CIT(A) held that the assessee trust is engaged in the activity of running maintaining of the charitable hospital and not carrying any other business activities as all the three departments viz. Pharmacy, Gymnasium and Cafeteria could not be said to be three different independent business activity of the assessee trust. Aggrieved by the decision, the revenue has raised this ground before us. 3.2 Before us, the Ld.DR has relied on the order of the AO in support of the Revenue s case. On the other hand, the Ld.AR has stated that all the three depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the institution, it will not cease to be one existing solely for the statutorily stipulated purpose so long as the object is not to make a profit. Again, it is a well settled position in law that the dominant nature of the purpose for which the trust exists has to be considered. The Chief Commissioner has not doubted the genuineness of the trust or the fact that it is conducting a hospital. Even if the figures which are taken into account by the Chief Commissioner are to be had regard to, it is evident that the activity of a chemist shop is an activity which is incidental or ancillary to the dominant object and purpose which is to run a hospital. The Chief Commissioner has accepted that the surplus which is earned from the operation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court which hold the field consequent upon which the impugned order would have to be set aside. Respectfully following the said decision which is applicable to the facts in the instant case of the assessee, we do not find any infirmity in the decision of the Ld.CIT(A) directing the AO to allow deduction u/s 10(23C)(via) of the Act. Accordingly, Ground No 2 is hereby dismissed. 4. Ground No 4 relates to the issue of allowability of the claim of depreciation of ₹ 17,30,47,286/- on the fixed assets/ capital assets purchased out of the donation received in the earlier years. 4.2 The relevant facts are that during the year under consideration, the assessee had claimed a depreciation of ₹ 17,30,47,286/-. The AO fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on various judicial decisions in support of the claim of the assessee. 4.5 We have heard both the parties and perused the material on record. As regards the alleged issue of double deduction, it is pertinent to mention that the donations received by the assessee trust have been exempt from the tax as the provisions of section 11 to 13 of the Act are applicable in those respective years. The claim of depreciation on the assets acquired through such donation on the opening of WDV in the subsequent years, in our view, does not amount to the claim of double deduction and also the ratio in the case of Escorts Ltd Vs Union of India is not attracted as claimed by the Revenue considering the facts of the present case. The complete working ..... X X X X Extracts X X X X X X X X Extracts X X X X
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