TMI Blog2022 (12) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... 12A - Appeal by the assessee is allowed for statistical purposes. - ITA no.1152/Mum./2019 AND ITA no.1153/Mum./2019 - - - Dated:- 2-12-2022 - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Poojan Mehta For the Revenue : Shri Prabhat Kumar Gupta ORDER PER SANDEEP SINGH KARHAIL, J.M. These two appeals have been filed by the assessee challenging the denial of registration under section 12AA and section 80G of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Exemptions), Mumbai, [ learned CIT(E)]. ITA no.1152/Mum./2019 2. This appeal has been filed by the assessee challenging the impugned order dated 27/08/2018, passed under section 12AA(1)(b)(ii) r/w 12A, of the Act by the learned CIT(E). 3. In its appeal, the assessee has raised the following grounds: 1. On the facts and circumstances of the case and in law the Ld. CIT (Exemption) erred in rejecting the application of registration made by the appellant u/s 12A of the Income tax Act, 1961. 2. The Assessee craves leave to add further grounds or to amend or alter the existing grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where Trustees are owners. Moreover, amount of Rs.88,000/- is spent on travelling of trustees which cannot be related to work of charity. Further substantial amount deposited in the bank account of the trustees has been withdrawn by the trustee claiming it for spending on patients but no record in respect of such expenditure has been maintained. The details of large withdrawals/expenditure are as under: Date Particulars Amount 07.07.15 Cash Self 5,00,000 16.07.15 Cash Self 5,00,000 22.01.15 Zenith Hospital 2,00,000 23.12.15 Chalet Hotels Pvt. Ltd. 1,00,000 30.12.15 Chalet Hotels Pvt. Ltd. 59,617 09.03.16 All Four Season Travels 89,150 02.05.16 Accurate Travels 88,000 01.08.16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are the primary conditions for grnating registration u/s 12AA of the I.T. Act, 1961. Being aggrieved, the assessee is in appeal before us. 6. We have considered the rival submissions and perused the material available on record. It is the plea of the assessee that the trust was established for the purpose of treatment of tuberculosis patients and for the same it has also organised free medical camps and treated the patient at concessional rates. It has further been submitted that till the financial year 2017 18 the trustees could not maintain activity records, however, thereafter activity of treating patients at concessional rates and giving medical facilities is mentioned in the income and expenditure account. In this regard, it is relevant to note the following reply of the assessee filed before the learned CIT(E): 4. In response to the above queries raised, Shri Pranay N Ingle, Authorized Representative of the assessee, vide letter dated 16.07.2018, submitted: 4.1 The Ledger Account of the Trustee from last 4 years attached hereby for your reference where the trustee has taken the money from a local party in the nature of donations but incurred at trustee l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t also concessional rates but trustee could not maintain the activity records for which we request you to kindly accept this fact and in the Financial year 2017 -2018 there was activity mentioned in the Income and expenditure account and the documentary evidence indicating free medical camp. treating patients at concession rates and other photographs along with the bills and vouchers are attached in the file. Further during the hearing process before the CIT trustee had said that they want to merge Zenith Hospital and Zenith trust together so that their objectives of treating the poor patients and needy patients will be served at larger scale as well as the hospital will get the expansion in the form of MRI, Pathology dept etc. For special treatment space for TB patients so on Also substantial interest problem will also be solved if the trust gets 124 and 80 G as early as possible. Trust will get the Donations from local as well as other states once we received all the licenses of the said Trust and objective will definitely will be served ithout any default 4.3 As explained earlier, from Audit point of view trustee have incurred money on foreign and Delhi delegates in or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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