TMI Blog2020 (9) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... rant recognition to the assessee u/s. 80G - Decided in favour of assessee. - ITA Nos.2199 And 2200/Hyd/2018 - - - Dated:- 17-9-2020 - Smt. P. Madhavi Devi, Judicial Member And Shri A. Mohan Alankamony, Accountant Member For the Assessee : Shri M.V. Anil Kumar For the Revenue : Shri P. Soma Sekhar Reddy, DR ORDER PER A. MOHAN ALANKAMONY, AM.: Both these appeals are filed by the assessee against the orders of the Ld. CIT (Exemptions), Hyderabad in F. No. CIT(E)/Hyd/ITAT/12A 80G/23/2017-18, dated 17/06/2017 passed U/s. 12AA 80G of the Act with respect to the application filed by the assessee in Form-10A and Form No. 10G on 29/03/2014 seeking registration U/s. 12AA of the Act and recognition U/s 80G of the Act. 2. On perusing both the appeals, we find that the appeal No. 2200/H/2018 is a duplicate appeal filed against the same order of the Ld. CIT (E) cited supra. Therefore, this appeal of the assessee stands dismissed and we take up the appeal No. 2199/H/2018 for adjudication. 3. At the outset, Ld. AR submitted before us that there is a delay of 11 days in filing the appeal before the Tribunal. In this regard, Ld. AR brought our attention toward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eafter, the Ld. CIT (E) after examining the audited financial statements of the assessee for the AY 2016-17 and other relevant documents, rejected the applications of the assessee because of the following reasons:- (i) The object of the assessee clearly indicates that it is established mainly for the advancement of the science related to Neonatology which is predominantly useful for the development of scientific skills amongst Doctors. (ii) Scholarships and Fellowships extended by the assessee was to encourage research scholars who are only Doctors. (iii) Promoting and conducting conferences, Lectures, meetings, seminars etc., was only meant to enrich the knowledge amongst the Doctors community. (iv) Predominantly all the Members of the Society are Doctors. (v) The P L Account for the AY 2016-17 indicates that only conferences were organized during the period. 7. With the above observations, the Ld. CIT (E) opined that since the assessee Society was benefiting only the Doctors community, it cannot be treated as an entity imparting charitable activity. Therefore, the Ld. CIT (E), rejected the applications of the assessee for granting registration U/s. 12AA and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance placed by the assessee in the decisions of the Hon ble Rajasthan High Court supports the case of the assessee. The gist of the decisions are extracted herein below for reference:- Hon ble Rajasthan High Court in the case, CIT (E) vs. Anesthesia Society reported in 101 Taxmann.com 227 (2019) has held as under: 1. .. 2. Precisely, the contention of the appellant is that the assessee society has been constituted for the benefit of only one branch of medicine i.e. Anaesthesia and not for the purpose of benefitting the entire medical fraternity and therefore, the benefit of registration under Section 12A was rightly denied to the assessee society by the CIT (Exemption) and thus, the ITAT has erred in law in extending benefit of registration under Section 12A to the assessee society. 3. The learned ITAT opined that the society might be catering to only one particular branch of doctors, but it is not the case of the department that the benefit will be accruing to specified individuals rather, all the doctors practising Anaesthesia within the district of Sriganganagar and Hanumangarh will stand benefited by the activities of the society. Relying up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irect taxes by holding seminars, conferences and workshops etc. falls within the purview of Section 2(15) of the Act so as to make it entitle to registration under Section 12A of the Act, relying upon inter alia the decision of Supreme Court in Ahmedabad Rana Caste Association's case (supra), observed that the predominant object of the society is dissemination of knowledge and education of commercial law, tax laws for the benefit of general public to inculcate a sense of responsibility towards the nation and foster law abiding citizen. The court further observed that it appears that the society is not for the benefit of small group of individuals and it is also not only for the benefit of members but to promote awareness and education of commercial and tax law for general public without any profit motive. The court opined that in the situation of explosion in population, the vast changes brought by the scientific technology and other developments, more particularly, the universal concept of globalisation, new trends in the world order to meet the ever growing challenges to organising seminars, conferences and workshops to educate the people of commercial laws, tax laws, auditin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (c) medical relief, or (d) advancement of any other object of general public utility. In order that a purpose may qualify for being regarded as an object of general public utility, it must be intended to benefit a section of public as distinguished from specified individuals. The decision of the Apex Court in Ahmedabad Rana Caste Association v. CIT [1971] 82 ITR 704 provides sufficient binding guideline to resolve the controversy involved in the instant case. The observations of the Supreme Court make the position clear with respect to benefit to a section of public and specified individuals. Applying the test laid down by the Apex Court in Ahmedabad Rana Caste Association's case (supra ), it was found that the predominant object of the assessee-society was dissemination of knowledge and education of commercial laws, tax laws for the benefit of general public to inculcate a sense of responsibility towards the nation and foster law abiding citizens. The object clause of constitution emphasized to propagate and disseminate knowledge about the auditing, accounting, direct and indirect taxes by holding seminars, conferences and workshops, etc. The fruits of seminars, confer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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