9911796707
TMI Blog2025 (4) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... Gynaecological Society (in short 'POGS'), assessee has raised following grounds of appeal : "1. Learned PCIT-Central Circle, Pune erred in law and on facts in cancelling registration u/s. 12A of ITA, 1961, by referring and relying upon powers u/s. 12AB(4) of the ITA, 1961. Learned PCIT-Central Circle, Pune erred in treating Appellant Trust as a facilitator/conduit in tax evasion pursuit deployed by "EMCURE group" of companies. 2. Learned PCIT-Central Circle, Pune erred in law and on facts in holding that, activities of the Appellant are not genuine. Learned PCIT-Central Circle ought to have appreciated that, Appellant is a public charitable trust registered under Maharashtra Charitable Trust Act, 1950 and that, Appellant's activities of organising seminars/ symposiums / conferences, etc. is not an activity against any public policy. 3. Learned PCIT-Central Circle, Pune erred in law and on facts in equating Appellant trust to the corporate companies and/ or individual medical practitioners, who may benefit from freebies/gifts, etc. in violation of norms laid down by Indian Medical Council. Appellant contends that, such an analogy is incorrect considering the absen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for its educational programs, the appellant had not acted as a conduit of that company for distributing freebies to the medical practitioners /doctors and accordingly, withdrawing registration of the society u/ s 12AB(4) was not justified. 4] The learned Pr. CIT was not justified in holding that the appellant society was a conduit between Emcure Pharma Companies and the medical practitioners for the purposes of providing freebies by those companies to the medical practitioners. 5] The learned Pr. CIT erred in ignoring the fact that the grants received from the pharma companies were utilised properly for the objects of the society like organising the conferences on medical subjects, medical camps, etc. etc. and therefore, the society had not violated any of the rules / regulations of Indian Medical Council and hence, the withdrawal of registration u/s 12AB(4) is not justified. 6] Without prejudice, the learned Pr. CIT was not justified in withdrawing the registration w.e.f. A. Y. 2015 16 u/s 12AB(4) by relying on explanation (e and f) thereof when such explanation was introduced by Finance Act, 2022 only and it was not on the statute in the earlier years. 7] The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Principal Commissioner of Income Tax, Central Circle, Pune has erred in passing an order u/ s. 12AB(4) of the ITA, 1961 thereby cancelling the registration of the appellant trust without jurisdiction. As such, cancellation is bad in law. 6. In ITA No.417/PUN/2023 in the case of AIDS Society of India (in short 'AIDS Society'), the assessee has raised following grounds of appeal : "The Principal Commissioner of Income-tax (Central), Pune (hereinafter referred to as the Pr CIT) erred in framing an order under section 12AB(4) of the Act and cancelling the registration granted to the appellants under section 12AA the Act. The appellants contend that on the facts and in the circumstances of the case and in law, the Pr CIT ought not to have framed the order under section 12AB(4) and cancelled the registration under section 12AA inasmuch as he has not appreciated the facts of the case in its entirety and hence, the action of the Pr CIT is bad in law and the impugned order needs to be quashed. The appellants further, contend that the Pr CIT has not brought any evidence on record to prove that specified violation as defined in Explanation to section 12AB(4) has occurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f hearing carried out on earlier occasions. Thus, the only one legal issue which remains to be adjudicated is as to whether powers are provided u/s. 12AB of the Act to cancel the registration granted u/s. 12A of the Act under the old regime. 11. Ld. Counsel for the assessee(s) mentioned at Sl.No.1 to 3 of the cause title, Mr. Kishor B. Phadke stated that in the case of the assessees namely Poona Obstetrics and Gynaecological Society and The Mumbai Obstetrics and Gynaecological Society (in short POGS and MOGS'), the registration under the old regime were granted u/s.12A of the Act on 04.12.1982 and 16.12.1976 respectively. So far as the other two assessees are concerned namely AOGS and AIDS society registrations have been granted u/s. 12AA of the Act. 12. As regards the merits of the case are concerned, it has been admitted by both the counsels namely Shri Kishor B. Phadke and Shri Rajiv Khandelwal representing these cases that all issues raised in the appeals are common and therefore we would take up ITA No.518/PUN/2023 in the case of POGS as the lead case and our decision on merits of the case shall apply mutatis mutandis to all the remaining cases. 13. Brief facts of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived from Pharmaceutical Companies for specific Education projects and activities. Ld. PCIT noticed that the list of sponsors include many the company namely Emcure companies including Pharmaceuticals Private Limited and amounts received by assessee trust during F.Y. 2016-17 to 2019-20 are Rs.66.7 lakh, 71.5 lakh, 15.5 lakh, 7.5 lakh respectively. Thereafter, ld. PCIT examined the expenditure made for the doctors which mainly included the booking of hotels for organising conferences, air tickets for the speakers, accommodation provided to the doctors. It was also observed that one of the sponsors namely EPL has given the list of doctors who were to participate in conferences. It was observed that name of delegates and doctors who would attend the conferences are decided by the sponsoring Pharmaceutical Company and the list thereof is sent to the doctors and the Trust do not interfere in selection of the delegates for the conference. 15. Thereafter, ld. PCIT gave reference to the judgment of Hon'ble Apex Court in the case of M/ s. Apex Laboratories Put. Ltd. vs. DCIT 135 Taxmann.com 286 (SC) where the Hon'ble Court has conclusively held that since acceptance of freebies b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance of expenditure in violation of the MCI Regulations which come in the ambit of Explanation to section 37(1) of the Act and CBDT Circular No 05/2012. This clearly shows that the averments of the Assessing Officer in his reference are proved. 12. At this stage, it is relevant to refer to the judgment of the Hon'ble Apex Court in the case of Apex Laboratories (P.) Ltd. v. Deputy Commissioner of Income-tax reported in [2022] 442 ITR 1 (SC). In the aforesaid judgment, the Hon'ble Court has held that acceptance of freebies by medical practitioners was punishable as per Circular issued by Medical Council of India under MCI Regulations, 2002, as such gifting of such freebies by pharmaceutical company to medical practitioners would also be prohibited by law. In the aforesaid judgment, the Hon'ble Court has rejected the contention that MCI Regulations, 2002 is applicable only to the doctors and is not applicable to the pharmaceutical companies. The Hon'ble Supreme Court has held that when acceptance of freebies is punishable by the MCI Regulations then pharmaceutical companies cannot be granted the tax benefit for providing such freebies, and thereby (actively and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Indian Medical Council Act 1956 read with rule 6.8 of Indian Medical Council (Professional conduct, Etiquette and Ethics) Regulations, 2002, as amended from time to time, be lawfully accepted by medical professionals and, therefore, an extension of such freebies is for a purpose, prohibited by law". The stand of the Assessing Officer cannot, therefore, be faulted. 21. In any case, the ill effects of this not so holy nexus between some unscrupulous medical professionals and some greedy pharmaceutical companies have played havoc with the reputation of one of the noblest professions in the world, and this pampering of the medical professionals is perceived as at the cost of the helpless end consumer, ie. the patients seeking medical help- overwhelmingly from the most underprivileged sections of the fellow citizenry. Hon'ble Prime Minister echoed these feelings when, on 19th April 2018, he explained how the use of generic medicines, through Jan Aushadhalya, has brought down medicine cost by almost 85%, and subtly hinted towards this not so holy nexus between medical professionals and pharmaceutical companies by observing that "In the same way ..... the person who writes the me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was equally bad. Both were privies to a wrong. Therefore, such commission paid to private doctors was opposed to public policy and should be discouraged. The payment of commission by the assessee for referring patients to it cannot by any stretch of imagination be accepted to be legal or as per public policy. Undoubtedly, it is not a fair practice and has to be termed as against the public policy." 12.3 It is seen from the guiding principles of the aforesaid judgments that acceptance and payment of freebies are both recognized to be against public policy and violative of the Indian Medical Council Regulations. The argument that the prohibitions apply to doctors only, has expressly been rejected. Any activity opposed to public policy will render the activities of the assessee trust as non-genuine. Hence, the assessee is found to have done a 'specified violation" in so far as the assessee is found to be carrying out activity of organizing conferences which involves providing facility to pharmaceutical company to give freebies to doctors. This act of facilitating the act of providing freebies is not being carried out in accordance with any of the conditions subject to which it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht and justified in cancelling the registration under sections 12AA and 80G of the Act." Similarly, the Hon'ble Allahabad High Court in the case of Dr. Bhim Rao Ambedkar Educational Society vs. Commissioner of Income-tax, (Exemptions) [2017] 88 taxmann.com 524 (Allahabad) has held that withdrawal of registration granted to assessee-Society under section 12AA was justified where its activities were neither genuine nor was it run as per objective set out in memorandum. 14. It is further relevant to refer that prior to the insertion of section 12AB of the Act by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, w.e.f. 01/04/2021, provisions of section 12AA of the Act was applicable for cancellation of registration. Sub section (3) of section 12AA provides that where a trust or an institution has been granted registration under clause (b) of section 12AA(1) and subsequently the Principal Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he shall pass an order in writing cancelling the registration of such trust o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2019] 111 taxmann.com 235 (Delhi - Trib.) has held that Registration granted under section 12A can be cancelled from date when registration had been granted if assessee has not carried out any activity in line with its objects or activities carried out are not genuine. The relevant finding of the Tribunal is reproduced hereunder: "121. One of the key contentions raised by the Id. counsel before us is that the Id. CIT(E) does not have the power to cancel the registration from retrospective date and any such cancellation can only be prospective, i.e., from the date of passing of the order and in support of which certain decisions have also been relied upon. From a bare reading of Section 12AA (3) it is seen that, section provides that where a trust or an institution has been granted registration and if subsequently, Pr. CIT or CIT is satisfied that the activities of the trust are not genuine or are not carried out in accordance with the objects of the trust, he may cancel the registration by way of an order in writing. Consequently, if there is violation of any such conditions, then the registration so granted can be cancelled by the CIT. Nowhere, the Statute envisages that the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, activities of the assessee trust cannot be held genuine. In fact, clause (a) of Explanation below section 12AB(4) provides that if any income of the trust, has been applied, other than for the objects of the trust or institution, same will come under the ambit of specified violation. Further, if any activity of the trust or institution is not genuine or is not being carried out in accordance with all or any of the conditions subject to which it was registered, then same would also be covered under the specified violation as provided under clause (e) of Explanation below section 12AB(4) of the Act. And lastly clause (1) of Explanation below section 12AB(4) of the Act provides that if the trust or institution has not complied with the requirement of any other law, then same would also be a specified violation under the said clause. Since in this case, the assessee trust by acting as a conduit of the pharmaceutical companies has provided freebies to the doctors/ medical practitioners nominated by such pharmaceutical companies, as such, it has violated the MCI Regulations, 2002 and the decision of the Hon'ble Apex Court in the case of Apex Laboratories (P.) Ltd. v. Deputy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust registered under the Maharashtra Public Trust Act, 1950; and has been engaged in regulatory / educational / research activity relating to Obstetrics &Gynecology since last over 40 years. POGS's main objects, as per the Memorandum of Association (i.e. MoA)are - - to promote professional fellowship amongst the members, - to encourage research in obstetrics & gynecology, - to extend educational interests, etc. A copy of the MoA is enclosed herewith and marked as Annexure-1. 1.2 Seminars / Conferences - For conducting various research and educational programs, Appellant is required to host conferences at various places in each year. Costs of holding these mass conferences are quite exorbitant. For such conferences, POGS receives sponsorship grants from various pharma companies as a cost mitigation exercise. Summary of Income & Expenditure and Balance Sheet for FY 2017-18 to 2021-22 is enclosed herewith and marked as Annexure-2. 1.3 Old registration u/s 12A-Appellant has availed 12A registration on 4/ 12/1982. Copy of the 12A registration certificate is given at Page 2 of Paper-Book-I. Since then, Appellant's 12A registration (old regime) has never been disturb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , disturbing registration u/s 12A, by using powers u/s 12AB, is non-permissible. Learned PCIT has used such powers which are not bestowed upon him by the law. (Similar situation arose in section 12AA, where, prior to year 2010, there was no power to cancel registration u/s 12A. Arguments were raised by I-T department that, cancellation of registration u/s 12A is an inherent power, and there is no need of any separate power to be granted. These arguments were rejected by the apex court in case of by Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd.[2018] 90 taxmann.com 281 (SC) observing that, order of grant / cancellation of registration of EXEMPTION, is a quasi-judicial order; and that; power for passing such order ought to be expressly granted by Legislature. In absence of express power, 12A registration can't be cancelled u/s 12AA. Exactly similar factual matrix prevails now. Under section 12AB(4), only, registrations granted u/s 12AA and 12AB cases are covered for cancellation. In other words, u/s 12AB, no power is bestowed for cancellation of registration u/s 12A). - Full copy of the apex court decision is given at Flag-6 of Case-law compilatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4;. In present case, there is no incriminating material at all, since, search survey took place on 16/12/2020 (i.e. earlier to new regime of section 12AB). Conclusion - As per various paras of the order of learned PCIT (Central) and in particular, as mentioned in Para-18 of the last page of the said order, learned PCIT (Central Circle) has revoked registration granted to the Appellant on 4/12/1982 u/s 12A by exercising power u/s 12AB(4) of ITA. A close reading of the said section 12AB(4) reveals that, the power of cancellation of registration granted u/s 12AB(4) is restricted only for the following two types of registrations - a) Registrations granted u/ s 12AB(1) b) Registrations granted u/ s 12AA(1) As such, the cancellation of registration granted to the Appellant on 04/ 12/ 1982 was beyond the powers bestowed u/s 12AB(4). Disturbance of 12A registration is incorrect as per law. Further, cancellation of registration granted u/s 12AB is permissible only on basis of some material showing "specified violation". No such material exists with learned PCIT. Hence, disturbance of 12AB registration is inappropriate on facts. For various above contentions, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal, to remain in active practice, earning of 6 CPD hours per year is a sine- qua-none. From perusal of CPD Guidelines reproduced at Page-306 of Paper-Book-III, it also reveals that, if any sponsorship of any pharma company leads to marketing / advertising / promotion of drugs / equipment of such pharma companies, no any CPD hours are eligible for being granted. As such, an internal check and balance exists in the regulatory framework that, all such programs, for which CPD hours get allotted, there is absence of any pharma company's promotion of drugs / medicines / equipment. 3.4 Events organized / regulated by the MMC Now, for granting the CPD hours, holding of worthy conferences is a key task. This task is performed by various charitable organizations. The field of medicines is huge. In each discipline, some apex charitable institutions are recognized by the IMC such as: - AIDS Society of India - Heart Foundation - Federation of Obstetrics and Gynecological Society of India (i.e. FOGSI) - etc. Now, despite these apex bodies working in respective fields, the task of holding conferences for thousands of medical professionals scattered at various places in India, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsorships received by the Appellant. It is submitted that the entire amount of sponsorships received from Pharma companies are meant and utilized for promoting educational and research in the field of Obstetrics and Gynecology as per the term of contract with the pharma companies. As such, the appellant is carrying its activities as per the object clause of the trust deed. Further, the sponsor pharma companies add specific riders in their sponsorship letters that, their sponsorships are meant only for educational and research pursuit and not for promotion of the drugs / medicines produced by such companies. Kindly refer to the following sample sponsorship letters in this regard: - Emcure Pharma - Page 211 of Paper-Book-II - SANOFI - Page 207 of Paper-Book-II - ERIS - Page 205 of Paper-Book-II - Abbot - Page 212 of Paper-Book-II From these sponsorship letters, it will reveal that, pursuit of the sponsorships is not to grant any freebies to medical professionals. On the other hand, pursuit is to mitigate costs of education and research programs. 3.9 Regulations issued by IMC (regarding professional conduct, etc.) IMC issues regulations from time to time, as to how, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mb-2 i.e. "prohibited by law". U/s 12AB(4)(f), it is stipulated that, Appellant has to comply with other laws. Now, per se, none of the regulations applicable to DOCTORS (Guidelines issued u/s 20A of Indian Medical Council Act) apply to the Appellant. As such, "offence" aspect ought to be ruled out / left at that. Further, if "prohibition of law" aspect is to be applied to the present situation, then, express power, as was so available in Explanation-1 to section 37 ought to exist. As per facts, no such Limb-2 exists in section 12AB(4)(f). Hence, reliance on Apex decision is misplaced. Copy of decision of Apex Court was submitted during course of hearing. 3.12 Summary of all the issues on merits of the case: Sr. No. Particulars Reference in 12AB(4) order Paper- Book / Other reference 3.12.1 It is compulsory for doctors to earn 6 (six) CPD hours per year. Attending Programs / Seminars helps in earning CPD hours. Arranging seminars for facilitating Doctors to earn CPD hours is logical and correct. - 225 246 247 272 3.12.2 Approved institutions can conduct Seminars for CPD hours, provided, same are in compliance with laws and rules and regulations For CPD hours, detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailed Guidelines are provided by GOVT authorities for activities which are permitted, and activities which are not permitted. Learned PCIT did not consider the Guidelines in proper perspective. 3.12.15 Learned PCIT, erroneously, applied old regulation (2002 / 2009). New regulation of 2016 does not apply to Associations like Appellant herein. As such, allegation of violation of law can't be attributed to Appellant at all. Learned PCIT glossed over this position. Para 17 Annexure- 5 3.12.16 As per guidelines, if any sponsorship by any pharma company leads to marketing / advertising / promotion of drugs / equipment of such pharma companies, no CPD hours are eligible for being granted. Herein, Seminars have earned CPD hours to Doctors expressly. By analogy, it can be logically inferred that, there is no violation of Guidelines. Learned PCIT reached his incorrect conclusions without considering these facts. As such, his conclusions deserve to be overruled. - 306 3.12.17 As per New Guidelines of 2016, for violation of Guidelines, following actions are provided for. Censure of erring Doctor Fine on Doctors Removal of name of such Doctor from Register of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to be denied only to the extent of violative portion. Similarly, Appellant has referred to section 13(1) and 115BBI, wherein, withdrawal of exemption only for violative part is provided for. This changing principle of the I-T law has been glossed over by learned PCIT-CC. In the present case, no any violation exists per se. Secondly, assuming there is some violation, exemption ought to be denied for such violative part. 12A / 12AA / 12AB cancellation is not the apt remedy. 5. Charges levied by learned PCIT, Central Circle Sr. No Charge levied Explanation 5.1 It is claimed that, clause (e) of explanation to section 12AB(4) is violated. It is claimed that, the activities are not genuine and, the activities are not carried out in accordance with objects of the trust. Appellant submits that, holding Seminars for benefit of thousands of Doctors is in tandem with objects and such activities are genuine. 5.2 It is claimed that, clause (f) of explanation section 12AB(4) is violated. It is claimed that the trust has not complied with provisions of 'Other Laws'. Appellant submits that the 'Other Laws' (MMC guidelines) specifically permit organizing Seminars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bies in various forms to doctors/medical practitioners in flagrant violation of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 further amended on 10/12/2009 were found and impounded.For assessing the impact, the case was centralized with the ACIT, Central Circle - 2(1), Pune. 1.4 After considering the materials found during the search, AO's comments with regards to specified violation u/s 12AB(4) of the Act, the Ld. PCIT(Central) Pune, passed the order u/s 12AB(4) vide dated 06/03/2023 stating that the activities of the trust are not in accordance with the objects of the trust. Hence, the activities are not genuine. There is specified violation by the trust under clause (a), clause (e) u/s 12AB(4) of the Act. There is violation as per clause (f) also because the assessee by acting as a conduit of the pharmaceutical companies has provided freebies to the doctors/ medical practitioners, as such, it has violated the MCI Regulations, 2002. 1.5 Therefore, the Ld. PCIT withdrew and cancelled the registration of the assessee w.e.f F.Y. 2013-14 and subsequent registration granted u/ s 12A(1)(ac)(i) of the Act. 2. After due consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailed by the doctors in connection with CME Conference on 11/08/2013 and 12/08/2013. * Air Travel expenses to Dove Travels Worldwide for travel of Dr. Aziz Nuzhat and Dr. Surampundi Kameswar on 04/04/2013. * In FY 2018-19 expenses were incurred for accommodation of the doctors in Hotel Westin. * In FY 2018-19 payments were made for accommodation of Dr. Rohini Deshpande, Dr. Jagannath Dixit, Milind Dugad, Meeta Singh, Pankaj Talwar, Deepak Jumani and Devang Kamu to Sheraton, Nagar Road, Viman Nagar, Pune. Dr. Rohini Deshpande was nominated by Emcure. * Also, accommodation was provided to Dr. Daule Jyotsna in Hotel Westin, who was also nominated by Emcure. The above expenses indicate that the doctors nominated by Emcure Pharmaceuticals Ltd. are also provided accommodation by the assessee. This means that Emcure Pharmaceuticals Ltd. is indirectly providing funds to provide the accommodation for the doctors who are nominated by them. Also it was observed on the basis of submissions by the assessee during post survey proceedings, that no registration fees which are ordinarily charged have been collected from the nominated participants. These are some special benefits which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual capacity under any pretext. Funding for medical research, study etc. can only be received through approved institutions by modalities laid down by law / rules / guidelines adopted by such approved institutions, in a transparent manner. It shall always be fully disclosed." 2.10 The above regulations strictly prohibit the medical practitioners to receive gifts, facilities like travel and accommodation, cash or grant. In the present case, the trustees of the assessee trust as well as the beneficiaries of the trust are all the medical practitioners and hence they are prohibited to receive such freebies. Even though the M/s Emcure Pharmaceuticals Ltd. is not directly providing such freebies to the medical practitioners, it is providing such freebies indirectly through the assessee trust. It can be said that the assessee is acting as a conduit for providing freebies to the doctors/ medical practitioners. 2.11 Reliance in this regard is placed on the decision of Hon'ble Supreme Court in the case of Apex Laboratories (P) Ltd vs Deputy Commissioner of Income Tax where it was held that, "36. In the present case too, the incentives (or "freebies") given by Apex, to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... violation",- (a) where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution (f) the trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub- section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality 2a[; or]" 2.14 Further it should be also considered that, the Circular no. 05/2012 issued by the CBDT, New Delhi explains that : "3. Section 37(1) of Income Tax Act provides for deduction of any revenue expenditure (other than those failing under sections 30 to 36) from the business Income if such expense is laid out/ expended wholly or exclusively for the purpose of business or profession. However, theexplanation appended to this sub-section denies claim of any such expense, if the same has been incurred for a purpose which is either an offence or prohibited by law. Thus, the claim of any expense incurred in providing above mentioned or similar freebee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h freebies is for a purpose 'prohibited by law'. The stand of the Assessing Officer cannot, therefore, be faulted." 2.16 Further the Hon'ble Pune ITAT in the case of DCIT v. Emcure Pharmaceuticals Ltd, has taken a view by referring to the decision of Hon'ble Supreme Court in the case of Apex Laboratories, confirmed the disallowance u/s 37(1) on account of providing freebies by the Emcure Pharmaceuticals to medical practitioners. 2.17 From the above explanation, it can be understood that to avoid such disallowance u/s 37(1) of the Act, the pharmaceutical company i.e Emcure Pharmaceuticals Ltd. has routed the expense of providing of freebies through the assessee trust as it enables the Emcure Pharmaceuticals Ltd. to claim an otherwise inadmissible expense as deduction. Such act of the assessee trust of carrying the activity of providing freebies at the behest of the pharmaceutical company is in contravention of Medical Council of India Regulations. The said activity of providing freebies and assisting Emcure Pharmaceuticals Ltd. in claiming expenditure which is otherwise inadmissible under law is nothing but facilitating tax evasion, and that amounts to misuse of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust are for providing platform to pharmaceutical company for giving freebies to medical practitioners/doctors. This is a misuse of the status conferred upon it by Section 12A as the activities by which the assessee is providing platform for the pharmaceutical company to provide freebies is strictly prohibited. Such activities are in violation of the law and hence the assessee is not entitled to enjoy such status. The facts of the above referredcase law are squarely applicable to the present case.It should be considered that a party cannot be permitted to carry out an activity on behalf of some other person who himself is prohibited to carry out such activity. It is a settled law that what cannot be done directly cannot be permitted to be done indirectly. Hence, the activities of the assessee trust lack genuineness. Therefore, cancellation of the registration of the assessee trust from A.Y. 2013-14 is justifiable. 2.22 Reliance with regards to retrospective cancellation of registration is placed on the decision of Hon'ble Delhi ITAT in the case of Young Indian v. CIT(Exemption) where it was held that, "121. One of the key contentions raised by the ld. counsel before us is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of which has been already incorporated above, wherein their Lordships have held that it a misnomer to state that the order is retrospective or retroactive and the order of the cancellation of registration even passed on subsequent date would take effect from the year when cause of action arose." 2.23 Hence, the cancellation of registration from A.Y. 2013-14 in the present case is justifiable. The above submission may kindly be considered." 18. The ld. Departmental relied on the following case laws/MCI Notification/CBDT Circular : 1 Apex Laboratories (P.) Ltd vs DCIT (SC) 135 taxmann.com 286 2 CIT (Exemptions) vs Batanagar Education and Research Trust (SC) 129 taxmann.com 30 3 Dr. Bhim Rao Ambedkar Educational Society vs CIT(Exemptions) (Allahbad HC)88 Taxmann.com 524 4 DCIT, Mumbai v. Macleods Pharmaceuticals Ltd (ITAT Mumbai) 131 taxmann.com 154 5 CIT v. Jagannath Gupta Family Trust (SC) 411 ITR 235 6 DCIT v. Emcure Pharmaceuticals Ltd. (Pune ITAT) 7 Young Indian v. CIT(Exemption) (Delhi ITAT) 8 MCI Notification dated 10/12/2009 9 CBDT Circular 05/2012 dated 01/08/2012 19. We have heard the rival contentions and perused the record placed before us. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee of the assessee trust has denied to be indulged into any of such alleged transaction in the statement given during the course of search. However, the assessee failed to succeed before ld.PCIT and now the assessee is in appeal before this Tribunal raising multifold contentions, mainly the following three issues : a) Challenge to jurisdiction assumed by learned PCIT b) Challenge to powers available in section 12AB c) Challenge to cancellation of registration on merits of the Appeal 12. Before us, ld. Counsel for the assessee has not pressed the issue challenging the jurisdiction assumed by ld.PCIT. Thus, Grounds of appeal No.1 and 2 raised by the assessee are dismissed as 'not pressed'. 13. Now we take up the second issue challenging the powers available in section 12AB of the Act. Ld. Counsel for the assessee while raising the issue of challenging the powers available in section 12AB of the Act made threefold contentions and the same are : (a) that in absence of express powers provided u/ s. 12AB of the Act for cancelling the registration u/s. 12A of the Act, notice issued on 21.03.2023 u/ s. 12AB(4) of the Act is invalid and void ab-initio. (b) that second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegy, formulated by the Board from time to time, for any previous year, the Principal Commissioner or Commissioner shall,- (i) call for such documents or information from the trust or institution, or make such inquiry as he thinks necessary in order to satisfy himself about the occurrence or otherwise of any specified violation; (ii) pass an order in writing, cancelling the registration of such trust or institution, after affording a reasonable opportunity of being heard, for such previous year and all subsequent previous years, if he is satisfied that one or more specified violations have taken place; (iii) pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; (iv) forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution. Explanation .- For the purposes of this sub-section, the following shall mean "specified violation",- (a) where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration certificate once granted by him under Section 12A of the Act and, if so, under which provision of the Act? 18. Second, when the CIT grants registration certificate under Section 12A of the Act to the assessee, whether grant of certificate is his quasi judicial function and, if so, its effect on exercise of his power of cancellation of such grant of registration certificate? 19. Third, whether Section 21 of the General Clauses Act can be applied to support the order of cancellation of the registration certificate granted by the CIT under Section 12A of the Act, in case, if it is held that there is no express power of cancellation of registration certificate available to the CIT under Section 12A of the Act? And 20. Fourth, what is the effect of the amendment made in Section 12AA introducing sub-clause(3) therein by Finance (No-2) Act 2004 w.e.f. 01.10.2004 conferring express power on the CIT to cancel the registration certificate granted to the assessee under Section 12A of the Act. 21. In our considered opinion, the CIT had no express power of cancellation of the registration certificate once granted by him to the assessee under Section 12A till 01.10.2004. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is held that the application of Section 21 of the General Clauses Act has no application to amend or rescind or vary a notification issued under Section 3 of the Commissions of Enquiry Act for reconstituting the commission by replacement or substitution of its sole member except applicable for a limited purpose for extending the time for completing the enquiry. (State of Madhya Pradesh v. Ajay Singh AIR 1993 SC 825). It is also held while construing the provisions of Citizenship Act that the certificate of registration of citizenship issued under Section 5(1) C of the Citizenship Act cannot be cancelled by the authority granting the registration by recourse to Section 21 of the General Clauses Act. (Ghaurul Hasan v. State of Rajasthan AIR 1967 SC 107 and Hori Shanker Jain v. Sonia Gandhi AIR 2001 SC 3689). And lastly, while construing the provisions of the Representation of People Act, it is held that the Election Commission cannot, by recourse to Section 21 of the General Clauses Act, deregister or cancel the registration of a political party under Section 29A of the Act for the decision of the Commission to register a political party under Section 29A(7) of the Act is a quasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astructure Development Corporation (supra) is that in absence of any express power conferred to the CIT(A) in section 12AA(3) of the Act the registration granted u/s. 12A of the Act cannot be cancelled and the same ratio is applicable on the present set of facts where registration u/s.12A has been cancelled in the proceedings carried out after 01.04.2021 u/s.12AB(4) of the Act. As we have extracted section 12AB(4) of the act in the preceding para, the same clearly deals with the registration or provisional registration granted under clause (a) (b) or (c) of sub-section (1) or clause (b) of sub-section (1) of section 12AA, as the case may be and not section 12A of the Act. It means that there is no express power provided u/s. 12AB of the Act for cancelling the registration granted u/s. 12A of the Act. Very same issue came up for adjudication before the Coordinate Bench, Cuttack in the case of Maa Jagat Janani Seva Trust (supra) wherein it has been held as under : "5. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that a show cause notice for the purpose of cancellation of registration u/ s. 12AA of the Act came to be first issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate books of account are not maintained by such trust or institution in respect of the business which is incidental to the attainment of its objectives; or c) The trust or institution has applied any part of its income from the property held under a trust for private religious purposes, which does not ensure for the benefit of the public; or d) The trust or institution established for charitable purpose created or established after the commencement of this Act, has applied any part of its income for the benefit of any particular religious community or caste; or e) Any activity being carried out by the trust or institution- (i) is not genuine, or (ii) is not being carried out in accordance with all or any of the conditions subject to which it was registered; or f) The trust or institution has not complied with the requirement of any other law, as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality. 6.1 The contention of the ld. A.R. is that, these provisions have been inserted by Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or institution, after affording a reasonable opportunity of being heard, for such previous year and all subsequent previous years, if he is satisfied that one or more specified violations have taken place; iii. pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; iv. forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution. Explanation: For the purposes of this sub-section, the following shall mean "specified violation", - a) Where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or b) The trust or institution has income from profits and gains of business which is not incidental to the attainment of its objectives or separate books of account are not maintained by such trust or institution in respect of the business which is incidental to the attainment of its objectives; or c) The trust or institution has applied any part of its income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary implication". 6.5 In the case of Karimtharuvi Tea Estate Ltd. Vs. State of Kerala reported in 51 ITR 129 (SC) the same view was taken by the Hon'ble Supreme Court. 6.6 Further, the Hon'ble Supreme Court in the case of Shree Chowdhary Transport Company Vs. ITO reported in 426 ITR 289 (SC) wherein held as under: 17.4 It needs hardly any detailed discussion that in income- tax matters, the law to be applied is that in force in the assessment year in question, unless stated otherwise by express intendment or by necessary of implication. As per section 4 of the Act of 1961, the charge of incometax is with reference to any assessment year, at such rate or rates as provided in any central enactment for the purpose, in respect of the total income of the previous year of any person. The expression "previous year" is defined in section 3 of the Act to mean "the financial year immediately preceding the assessment year"; and the expression "assessment year" is defined in clause (9) of section 2 of the Act to mean "the period of twelve months commencing on the 1st day of April every year". 17.5 In the case of CIT v. Isthmian Steamship Lines (1951) 20 ITR 572 (SC), a 3-jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question, having come into effect from April 1, 2005, would apply from and for the assessment year 2005-06 and would be applicable for the assessment in question. Putting it differently, the Legislature consciously made the said sub-clause (ia) of section 40(a) of the Act effective from April 1, 20056, meaning thereby that the same was to be applicable from and for the assessment year 2005-06; and neither there had been express intendment nor any implication that it would apply only from the financial year 2005- 06." 6.7 Being so, we find force in the argument of ld. A.R. that in income-tax matters, law to be applied is the law in force in the assessment year unless otherwise stated or implied. In the present case, ld. PCIT is cancelling the registration granted u/ s 12AA/ 12AB of the Act w.e.f. previous year 2020-21 relevant to assessment year 2021-22. In our opinion, the law as stated in the assessment year 2021-22 is to be applied and not the law as stood in the assessment year 2022-23. 6.8 Thus, we are of the view that no retrospective cancellation could be made u/s 12AB(4)(ii) of the Act as it has been provided or is seen to have explicitly provided to have a retrospec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective effect from assessment year 2018-19, which is bad in law. 6.10 It is noted that coordinate bench of this Tribunal in both assessee's case for AY 2021-22 has taken similar view and as quashed the retrospective applicability of the new amended provision u/s 12AB(4)(ii) of the Act. We also note that same view has been taken by Coordinate bench of Mumbai in the case of Heart Foundation of India in ITA No. 1524/Mum/2023 vide order dated 17 27.7.2023, wherein held that registration granted u/s 12A of the Act dated 21.7.1989 cannot be cancelled by ld. PCIT (Central) vide order dated 6.3.2023 w.e.f. assessment year 2016- 17, by invoking the provisions of section 12AB(4)(ii) of the Act. Accordingly, we allow the primary ground nos.2, 3, 5 & 12 and order of ld. PCIT passed u/s 12AB(4)(ii) of the Act is quashed. " 6. Further, on perusal of provisions of section 12AB(4) of the Act shows that the said provision has been substituted by the Finance Act, 2022 w.e.f. 1.4.2022. Before 1.4.2022, the registration could have been cancelled u/s. 12AB(5). However, the provisions of section 12AA and Section 12AB came into effect from 1.4.2015. Before that registration was done under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act to cancel the registration u/s. 12A of the Act, such cancellation order was quashed. Subsequently, there was an amendment brought in by the Finance Act, 2010 thereof giving power u/s. 12AA of the Act to cancel the registration u/s.12A of the Act. However, under the current provisions of section 12AB of the Act there is no express powers provided under the Act to cancel the registration u/s.12A of the Act granted under the old regime. We also find that in the impugned orders in the case of all the assessees in appeal before us, ld. PCIT has referred to the 'specified violation' mentioned in section 12AB(4) of the Act which the assessee(s) trusts have been alleged to have been committed based on which the registrations granted u/s.12A/12AA/12AB have been cancelled. However, the word 'specified violation' has been brought into the Act in section 12AB of the Act from 01.04.2022 onwards and is therefore applicable for A.Y. 2022-23 and onwards and therefore in absence of word 'specified violation' prior to 01.04.2022, ld.PCIT erred in invoking section 12AB(4) of the Act in the cases of assessee(s) appeals before us. Cancellation of registration should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viding freebies to the doctors/medical practitioners which is prohibited under the law and the reference has been made to the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002. 22. Ld. PCIT referred to the documents placed at pages 8-11 in Bundle No.6 and Pages 36-38 of Bundle No.5 observing that the same contains list of doctors who were nominated by Emcure Pharmaceuticals Private Limited and the nominations were accepted by the assessee(s) trusts, arrangements for accommodation of the nominated doctors are also found. By making of such arrangements between the Pharma Company and the doctors, ld. PCIT observed that the assessee(s) trusts are working as conduit and helping the Pharma companies to avoid disallowance of expenditure in violation of Medical Council of India Regulations which comes in the ambit of Explanation 1 to section 37(1) of the Act. Ld. PCIT also observed that the assessee(s) trusts which are constituted by the doctors/medical practitioners were governed by Medical Council of India Regulations, 2002. They have admitted that Pharma Companies had nominated their delegates for the conference and the assessee(s) trusts have incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onferences, sponsorships and grants are needed because such conferences/seminars cannot be organised successfully only with the contribution of the members. At this stage, the role of Pharmaceutical companies comes into play and they provide the sponsorship to the registered organisations, i.e. Professional Association of Persons. It is also an admitted fact that if as per the guidelines if any sponsorship by any pharmaceutical company leads to marketing/advertisement/promotion of drugs / equipments of such pharmaceutical companies, no CPD hours are eligible for being granted. Revenue authorities have failed to bring on record any such instance where the CPD hours approving councils have referred to any such violation by the assessee(s) trusts. Even as per the new guidelines, 2016 providing for fine on the doctors, censure of erring doctors and removal of name of such doctor from Register of Doctors for varying periods in case they are found to be violating the guidelines but not a single doctor attending any programme has been fined/punished. 24. We observe that all the assessee(s) trusts in appeal before us are having common objects which mainly include promotion of professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to attending Members. Due to sponsorships, cost of attending a larger seminar gets reduced, which benefits the common Members attending Seminars Holding of worthy conferences requires funds. Pharma companies help in cost mitigating by sponsoring such programs. Pharma Companies stipulate purpose of sponsorship (typically, scientific knowledge, new trends in profession, etc.) Pharma companies expressly state in sponsorship letters that, no any promotion of their drugs should be done in the Seminars and that, all applicable laws need to be complied with. Unfortunately, learned PCIT reached adverse ―satisfaction‖ without considering these vital facts. As such, his conclusions are totally incorrect. Detailed Guidelines are provided by GOVT authorities for activities which are permitted, and activities which are not permitted. Learned PCIT did not consider the Guidelines in proper perspective. Learned PCIT, erroneously, applied old regulation (2002 / 2009). New regulation of 2016 does not apply to Associations like Appellant herein. As such, allegation of violation of law can't be attributed to Appellant at all. Learned PCIT glossed over this position. As per guidelines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e would like to take note about one of the appellant before us namely AIDS Society of India which have been carrying out the National Conferences since past many years. The Schedule of 12th National Conference of AIDS Society of India - ASICON, 2019 can give a brief idea about the nature of conferences being organised and carried out by the assessee trust, which is as follows : 12th National Conference of AIDS Society of India- ASICON 2019 Hotel Leela Palace, Chennai November 22-24, 2019 Academic Partners CAPRISA-South Africa; Chennai ART(CART); International AIDS Society (IAS); Medical Council of India (MCI); National AIDS Control Organisation (NACO); Peoples Health Organisation-India (PHO); Revised National TB Control Programme (RNTCP); UNAIDS; Voluntary Health Services (VHS); World Health Organisation (WHO)-India Scientific Programme Day 1: Nov 22, 2019: 09:00-09:20 Welcome Remarks and Scientific Program Outline Scientific Chairs: Dr. Dilip Mathai, Hyderabad; Dr. R Sajithkumar, Kottayam; Dr. Jyoti Dhar, UK 09:20-10:00 Oral Abstract Session-I (1-4) Chairs: Dr. R Sajithkumar, Kottayam Dr. Satish Rao, Mangalore 1. Awareness, Willingness, Facilitators and Barri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ussion 16:10-16:30 Tea Break Session V 16:30-17:10 Debate: PrEP is crucial for achieving Zero new infections Moderators: Dr.S.N.Mothi, Mysore Dr. Glory Alexander, Bengaluru For Against Dr. R R Gangakhedkar, ICMR Dr. Naval Chandra, Hyderabad Dr. Amar Pazare, Mumbai Dr. Milind Bhrushundi, Nagpur Discussion Session VI 17:10-18:20 Widening the Horizon Chairs: Dr. Shrikala Acharya, MDACS Dr. Matin Ahmed, Jamshedpur 17:10-17:30 Late Presentation of HIV and Missed Opportunities Dr. Hitendra Thaker, UK 17:30-17:45 PrEP Demonstration Programmes in India Dr. Nomita Chandhiok, ICMR 17:45-18:05 Cure of HIV Dr. Herve Fleury, France Discussion 18:30- 19:30: ASI Annual General Body Meeting 19:30 -21:30: Cultural Programme and Dinner Day 2: Nov 23, 2019: 09:00-09:40 Oral Abstract Presentations -III (9-11) (ART) Chairs: Dr. GD Ravindran, Bangalore Dr. Ketan Ranpariya, Surat 8. First line ARV drug resistance mutations among the HIV-1 subtype C infected patients of Agra, North India Mr. Sushanta Kumar Barik, Agra 9. Clinical and immunological profile of antiretroviral therapy failure pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24, 2019 Session XIII 09:00-10:25 Tackling the Partners in Crime Chairs: Dr. K Priya, Chennai Dr. Udai Lal, Hyderabad 09:00-09:20 Update on HPV management Dr. Joel Palefsky, USA 09:20-09:40 Cure of HCV Dr. Robert Schooley, USA 09:40-09.55 Update on HBV therapy Dr. S.K. Guha, Kolkata 09:55-10:10 Update on TB Treatment and Research in India Dr. Srikanth Tripathy, Chennai Discussion Session XIV 10:25-10.50 Plenary 4 Chairs: Dr. Manoharan, Coimbatore, Dr. George Oommen, Mumbai Future of TB- Newer Drugs and diagnostics Dr. Constance Benson, USA 10:50-11:10 Tea Break Session XV 11:10-11:55 Special people - Special ways Chairs: Dr. A. R. Pażare, Mumbai Dr. Ruby Bansal, Ghaziabad 11:10 -11:30 Care of Adolescent and Children Dr. Jyoti Dhar, UK 11:30-11:45 What is new in ART for Women? Dr. S. Poongulali, Chennai Discussion Session XVI 11.55-12.20 Plenary 5 Chairs: Dr. Franco Buonaguro, Italy Dr. G. D. Ravindran, Bengaluru Long Acting ARVs Dr. Susan Swindells, USA Session XVIII 12:20-13:30 Towards Elimination of the Disease and the Stigma Chairs: Dr. Jyoti Dhar, UK Dr. Prakash Bora, Mumbai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of time it has been proved that funds received by the assessee(s) trusts have been specifically given to the doctors by way of freebies. What actually is the activity is that for the purpose of imparting education programmes are devised and conferences are organised. Eminent speakers from across the globe/country are invited to give the deliberations and various research activities are also undertaken. Such platform of research activities provided by the conferences/seminars give rise to fostering critical thinking, enhancing learning, promoting innovation, and contributing to societal advancement by providing solutions to problems and improving lives and for carrying out this expenditure has to be incurred for booking the hotels, food, travel expenses and also the expenses relating to staff who are engaged in organizing such activity. Even in the judgment referred by the Ld. PCIT in the case of M/ s. Apex Laboratories Put. Ltd. vs. DCIT (supra) the same is focussed only of giving freebies by the Pharma companies claiming it as expenditure u/s 37 of the Act and the doctors who receive the freebies. Before us, the case is not of the Pharmaceutical Company or the doctors who have go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal research, study etc. can only be received through approved institutions by modalities laid down by law / rules / guidelines adopted by such approved institutions, in a transparent manner. It shall always be fully disclosed. e) Medical Research: A medical practitioner may carry out, participate in, work in research projects funded by pharmaceutical and allied healthcare industries. A medical practitioner is obliged to know that the fulfillment of the following items (1) to (vii) will be an imperative for undertaking any research assignment / project funded by industry for being proper and ethical. Thus, in accepting such a position a medical practitioner shall :- (i) Ensure that the particular research proposal(s) has the due permission from the competent concerned authorities. (ii) Ensure that such a research project(s) has the clearance of national/ state / institutional ethics committees/bodies. (iii) Ensure that it fulfils all the legal requirements prescribed for medical research. (iv) Ensure that the source and amount of funding is publicly disclosed at the beginning itself. (v) Ensure that proper care and facilities are provided to human volunteers, if they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 the words "Professional Association of doctors" has been removed which means that assessee(s) trusts which are basically "Professional Association of doctors" are no more covered in the code of conduct regulations issued by Indian Medical Council. Further, the alleged allegation of providing freebies to the doctors and the funds received from Pharmaceutical Companies are for the period subsequent to the Notification dated 01.12.2016. 31. From the discussion made hereinabove, we find that the assessee(s) trusts are genuinely and consistently carrying on the work for the charitable objects for which they have been granted registration u/s.12A(old regime)/12AA/12AB of the Act and the funds they have received from the pharmaceutical companies have been applied for the objects of the trusts. Further, it has been consistently held that denial of exemptions can only be to the extent of violation made by the assessee(s) trusts. Hon'ble Bombay High Court in the case of Audyogik Shikshan Mandal (supra) has held that exemption u/s.11 ought to be denied only to the extent of violative portion. Further, since the assessee(s) trusts are genuinely carrying out the charitable activities, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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