The order of the Bench was delivered by
N. R. S. GANESAN (Judicial Member).-This appeal of the assessee is directed against the order of the Administrative Commissioner dated September 27, 2012 rejecting the application of the assessee under section 12AA of the Act.
Shri 1. Kuriakose, the learned representative for the assessee submitted that the assessee-trust was established for general public utility. According to the learned representative, the object of the trust was to promote and public study on nutrition dietetics, to promote academic and research activities in environmental as well as nutritional medicines and to organize seminars for the welfare of the people. Therefore, according to the learned representative, the Commissioner of Income-tax is not justified in rejecting the application for registration under section 12AA of the Act.
On the contrary, Smt. Susan George Varghese, the learned Departmental representative submitted that the trust was established by a medical professional. The object of the trust as found in article 3 does not stipulate • charitable activity. According to the learned representative, these are all services to the medical professionals. Therefore, the Administrative Como missioner has rightly rejected the application for registration.
We have considered the rival submissions on either side and also perused the material available on record. The object of the trust as found from the trust deed is as follows :
“Article 3-0bject
The object of the trust shall be to form an association of practitioners practicing and promoting nutritional medicine in India.
(i) To facilitate study research on nutrition and dietetics.
(ii) To facilitate preventive health emphasising on nutritional factors.
(iii) To identify and promote dietary supplements and dietary modifications for prevention of diseases.
(iv) To identify and promote dietary modifications for therapeutic measures for diseases.
(v) Facilitate identifying environmental factors causing health hazards and in facilitating measures to prevent as well as manage these hazards.
(vi) To promote high quality nutritional supplements for public use.
(vii) Help to promote academic and research activities in environmental as well as nutritional medicines.
(viii) To identify and promote ideal farming practice, storage and distribution of foodstuffs.
(ix) Organic farming promotion.
(x) Pure drinking water.
(xi) Lifestyle modification practices.
(xii) Promoting wellness clinics.
(xiii) Nutritional and health education programme."
Article 1 of the trust reads as follows :
"Article 1
(a) That the author has created a public charitable trust, to be known as Indian Nutritional Medical Association (INMA) to promote nutritional medicine in India. An association of practitioners practicing and promoting nutritional medicine in India shall be the members of the trust.
(b) That the sum of Rs. 1,000 (rupees one thousand only) already set apart as the trust fund by the author and shown in the schedule below and all sums of money, lands and other properties that may hereafter be collected or received by way of donations, bequests or otherwise for the purpose of the trust and all incomes, profits or gains arising to the trust and all investments in any kind of property made by the trust and all income arising therefrom and accretions thereto (all of which are included in the expression 'trust fund and properties shall be held in trust and applied for the purposes as set forth below, in accordance with the provisions and directions herein contained."
A bare reading of articles 1 and 3 clearly shows that it is an association of medical practitioners to promote nutritional medicine in hldia. Charitable activity is defined in section 2(15) of the Act which reads as follows:
“(15) charitable purpose includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general utility :
Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity :
Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is ten lakh rupees or less in the previous year."
The definition in section 2(15) is an inclusive one. The object of the assessee does not fall in anyone of the clauses mentioned in section 2(15) of the Act. Even in respect of the academic and research activity in environmental and nutritional medicine is only for the purpose of promoting nutritional medicine and not for the purpose of preservation of environment. The object of the trust is only to provide services to medical professionals, who are practising in nutritional medicines. The research and other activities of the assessee-trust may promote the sale of nutntional medicine in this country. Therefore, this Tribunal is of the considered opinion that the assessee is not established for the purpose of charitable purpose but for the purpose of promoting sale of nutntritional medicine and promotion of medical practice in nutritional medicine. Therefore, this Tribunal is of the considered opinion that the assessee cannot be considered to be a charitable institution and is not entitled to registration under section 12AA of the Act.
In view of the above discussion, this Tribunal do not find any infirmity in the order of the lower authority. Accordingly the same is confirmed.
In the result, the appeal of the assessee is dismissed.
The order pronounced in the open court on this 29th May, 2013.