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contented that assessee-Trust received more fees which in-turn was utilized to meet the charitable objects of the Trust. Further, it was pointed out by the Ld AR that M/s. DDPL didn't charge any rent from the Trust for utilizing it in the premises owned by M/s DDPL; and thus, the assessee Trust only benefited from such an arrangement with M/s.DDPL and not the other way i.e. company M/s. DDPL didn't benefit from such arrangement. And the Ld AR pointed out that the AO in order to estimate the compensation for using CT scanner has erroneously brought in some data based on report of Inspector, which copy was never given to assessee, so, according to Ld AR, the estimation is erroneous and flawed. The AO has noted at Para No.9(b) that the 'Siemens CT Scanner' was the only machine in the M/s. DDPL premise. The Ld.AR also pointed out inter alia several factual inconsistencies given by AO and pointed out some of them and especially drew our attention to Para No.9(d) of his reassessment order that the AO acknowledged that a perusal of accounts of the company M/s. DDPL would show that they have fully and entirely transferred to the assessee Trust, the fees from the use of 'Siemens CT Scanner', whereas his entire case was that M/s DDPL doesn't give adequate compensation for use of CT scanner to assessee-Trust. And the Ld CIT(A)/NFAC after appreciating the facts, have correctly deleted Rs 2.14 cr & Rs 19,59,537/-, by passing a speaking order. Thus, the Ld AR urged us to uphold the action of Ld CIT(A).
Trust [Dr. P.S.Nagendran, Managing Director of M/s. DDPL] 'as to why' the assessee-Trust property, 'Siemens CT Scanner' was installed in the premise of the company, M/s. DDPL, he replied that "the said machine is exclusively used for cancer patients and cardiac patients. It is used for internal radiation. Since the Dhevaki Heart Hospital and Cancer Hospital is situated in the Dhevaki Scan Premises, we have installed the machine at Dhevaki Scans. This machine is exclusively used for brachy therapy, angiograms to detect the cardiac vessels blocks. The machine is also used for treatment under Chief Minister Health Insurance Scheme Patients. Therefore, this machine is kept in Dhevaki Scans". The AO also noted that the answer to the Q.No.12, as to whether the said CT scanner was used for commercial purpose. Dr. K. Dhevaki deposed that "the machine was very rarely used for commercial purpose and the said amount has been transferred to the trust". Thus, according to the assessee, by making available the CT Scanner to M/s.DDPL, the assessee-Trust would get more fees which in-turn was utilized to meet the charitable objects of the Trust and asserted with the aid of corroborating evidence that the entire fees from CT scanner collected by M/s. DDPL were transferred to assessee Trust. Further, it was pointed out that M/s. DDPL didn't charge any rent from the Trust for using the machine at its premises, and thus, the assessee Trust only benefited from such an arrangement with M/s.DDPL and not the other way i.e. company M/s. DDPL didn't benefit ITA Nos.1302 to 1304/Chny/2023 (AYs 2014-15 to 2016-17) CO Nos.1 to 3/Chny/2024 (AYs 2014-15 to 2016-17) M/s.D.N. Public Charitable Trust :: 18 ::
ITA Nos.1302 to 1304/Chny/2023 (AYs 2014-15 to 2016-17) CO Nos.1 to 3/Chny/2024 (AYs 2014-15 to 2016-17) M/s.D.N. Public Charitable Trust :: 27 ::
Entitlement to exemption under section 11-merely because the assessee is charging fees from the patients for providing diagnostic service, whether exemption under section 11 of the Act could be denied or not? Held that We have carefully gone through the trust deed of the assessee. Clause 15 of the trust deed clearly says that no funds shall be applied or paid or distributed among the trustees and shall be applied towards furtherance of the objects of the trust. Even at the time of dissolution, it shall be devoted to the objects similar to those of the trust. Therefore, the profit of the assessee-trust is applied only for charitable activity and there was a prohibition in the trust deed to divert the funds for any other object. Therefore, this Tribunal is of the considered opinion that merely because the assessee is charging fees for diagnostic service, it cannot be said that the assessee is not doing any charitable activity. Thus, the lower authorities are not justified in denying the assessee relief under section 11 of the Act as it is not doing any charitable activity.