TMI Blog2020 (6) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... 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%. Sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPONDENT (BY SRI M. LAVA, ADV.) JUDGMENT ALOK ARADHE J., This appeal is filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ), by the Revenue, being aggrieved by the order dated 23.07.2010 passed by the Income Tax Appellate Tribunal, Bengaluru, in ITA.No.1226/Bang/2009. 2. The appeal was admitted vide order dated 08.11.2011, for considering the following substantial question of law: 1. Whether the order passed by the Income Tax Appellate Tribunal granting renewal of exemption is contrary to Section 80- G(5)(iii) of the Act is therefore unsustainable? 3. The facts giving rise to filing of this appeal briefly stated are that, the assessee is a Trust established through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inction of caste or religion. It was also pointed out that admission to medical college was through an open competitive examination done in a transparent manner. It was stated in the reply that from the perusal of the Memorandum of Association, it is evident that there is no restriction that the beneficiary should be from particular caste or religion. The Assessing Officer rejected the application filed by the assessee stating that the clauses in the proposed Memorandum of Association was not in consonance with the provisions of Section 80G(5)(iii) of the Act. Being aggrieved, the Assessee preferred an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal ). The Tribunal vide impugned order dated 23.07.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Director of Income Tax (Exemptions) has taken an erroneous view. He has invited the attention of this Court to paragraph xiv of the representation dated 11.11.2009 and pointed out that the Society was registered during the year 1961 and the medical college started functioning in the year 1963. It is further submitted that thereafter, the exemption under Section 80G of the Act was granted and it continued to be renewed from time to time. It is further argued that the clause primarily for benefit of Catholics; other may be admitted without distinction of caste or creed has been thoroughly examined by the department several times earlier. Only after satisfying that the import of Proviso (iii) to subsection (5) of section 80G is not attra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the respondent - Society for the previous years from 1963 till the year 2009. 10. 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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