TMI Blog2024 (4) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... s of manufacturing and marketing of pharmaceutical drugs of the entities who had sponsored the research work. There cannot be any doubt that imparting awareness amongst the patients in respect of diseases which badly affected the health of the individual, is certainly a charitable activity. In our considered view at the stage of registration the learned CIT(Exemption) is required to examine the objectives of the assessee, whether such objectives would fall under the category of charitable or not. Whether the assessee incurred expenses on such activity or not can be verified by the assessing authority and if it is found that the assessee is not carrying any charitable activity and the expenditure is incurred for promotion of business of othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act ), pertaining to the assessment year 2019-20. The assessee has raised following grounds of appeal: 1. On the facts and circumstances of the case and in law, the Order passed u/s 12AA(1)(b) r.w.s 12A of the Act by the CIT Exemption is bad in law, without jurisdiction and illegal and therefore the notice along with the assessment order passed on the foundation of such notice is liable to be quashed. 2. On the facts and circumstances of the case and in law, the CIT Exemption erred in not correctly appreciating the nature of activities that were carried on by the Appellant Institution which were not found to be not genuine. 3. On the facts and circumstances of the case and in law the learned CIT(Exemptions) has failed to carry out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial. Moreover, at the stage of registration it is to be seen whether the objectives of the assessee are charitable or not. 4. On the other hand, learned DR opposed the submissions and supported the order of the CIT(Exemption). 5. We have heard rival submissions and perused the material available on record. We find that learned CIT(Exemption) rejected the application by observing as under: 2. The applicant Society has been created on 16.08.2017. The main objectives as per the MOA are:- 3.1.1 To screen general pooulation for the prevalence of endocrine disorders(diabetes, thyroid and other hormonal diseases) and make general population aware of the diseases. 3.1.2 To impart education to patients 3.1.3 patienex To create awareness among patie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,000/- cach to the doctors Payees. 40 payments have been made on 29.05.2019 and balance 272 payments have been made in June 2019 In respect of the payments the applicant has stated that During the course of deficiency a wunber of medical professionals were engaged The copies of the documents of work undertaken by them are enclosed herewith Sample case studies furnished by the applicant can at best we consider as Clinical Research, which is not a charitable activity. Further, the Clause 3.1.4 of the Society for providing of financials assistance to doctors cannot be considered to be a charitable activity, It cannot be considered to be part of relief of poor or medical relief, and can only be construed as routing of funds received from pharm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cannot be any doubt that imparting awareness amongst the patients in respect of diseases which badly affected the health of the individual, is certainly a charitable activity. In our considered view at the stage of registration the learned CIT(Exemption) is required to examine the objectives of the assessee, whether such objectives would fall under the category of charitable or not. Whether the assessee incurred expenses on such activity or not can be verified by the assessing authority and if it is found that the assessee is not carrying any charitable activity and the expenditure is incurred for promotion of business of other entity, the AO is empowered to disallow the expenditure and request for cancellation of registration. We also dr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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