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TMI Blog2020 (4) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... d 18th March, 2002 under the provisions of Trust Act and as amended vide deed dated 26.05.2009. The trust was inter-alia formed with the following objectives. ''1 PATIENTS CARE: a) bring relief to patients suffering from the effects of injury or diseases of bone and joints. b) to provide financial help for poor patients suffering from crippling orthopaedic conditions like Rheumatoid Arthritis. To provide life saving emergency treatment for multiple injured patients who can not afford medical treatment. 2. EDUCATIONS AND TRAINING: To conduct and organize conferences, seminars, Lectures, etc in various places or impart knowledge among the people and particularly on medical professionals 3. To establish, maintain and support medic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 in ITA No.267/Mds/2010 directed the ld. CIT to grant registration to the assessee trust by holding that at the time of grant of registration, the ld. CIT is only expected to look into whether the object of the trust are charitable or not. 4. The Department filed appeal before the Hon'ble High Court of Judicature of Madras in Tax Case (Appeal) No.270 of 2011. The Hon'ble High Court vide order dated 30.01.2019 observed that Tribunal had failed to meet the reasoning of the ld. CIT while rejecting the registration u/s.12AA of the Act. The Hon'ble High Court made the following remark at para 8, wherein it was held as follows: ''8.One more aspect which is to be noted is that the proviso to Section 2(15) of the Act provides that advancement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f proviso to Section 2(15) of the Act, he placed reliance on the CBDT Circular No.11/2008, dated 19.12.2008. 5. On the other hand, the ld. CIT (Departmental Representative) placed reliance on the order of the ld. CIT in rejecting registration u/s.12AA of the Act. 6. We heard the rival submissions and perused the material on record. The only issue in the present appeal relates to whether or not the ld. CIT was justified in rejecting registration u/s.12AA of the Act by applying the proviso to Section 2(15) of the Act. For better appreciation of law, the proviso to Section 2(15) of the Act as it stood at the relevant time is reproduced hereunder: (15) "charitable purpose" includes relief of the poor, education, medical relief, and the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t incidentally involves the carrying on of commercial activities. 3. The newly inserted proviso to section 2(15) will apply only to entities whose purpose is 'advancement of any other object of general public utility' i.e. the fourth limb of the definition of 'charitable purpose' contained in section 2(15). Hence, such entities will not be eligible for exemption under section 11 or under section 10(23C) of the Act if they carry on commercial activities. Whether such an entity is carrying on an activity in the nature of trade, commerce or business is a question of fact which will be decided based on the nature, scope, extent and frequency of the activity''. Further, we note that reliance placed by the ld. CIT in the case of Queens Educati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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