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Through : Sh. Rohit Madan with Sh. Ruchir Bhatia, Advocates.

+ W.P.(C) 5711/2013 & C.M. NO.12626/2013 HAMDARD LABORATORIES (INDIA) AND ANR...... Petitioners Through : Sh. Parag. P. Tripathi, Sr. Advocate with Sh. Simran Mehta, Advocate.

versus DIRECTOR GENERAL OF INCOME TAX (EXEMPTIONS) ..... Respondent Through : Sh. Rohit Madan with Sh. Ruchir Bhatia, Advocates.

Submissions on Behalf of Hamdard I Withdrawal of Exemption Under Section 10(23C)(iv)

18. Mr. Parag Tripathi, Hamdard‟s Senior Counsel urges that the order withdrawing Hamdard‟s exemption under Section 10(23C)(iv) of the Act is erroneous and legally untenable. Hamdard is an established public charity enjoying exemption from tax for the last six decades; including under the W.P.(C) 3599/12, 5715/13, 5716/13, 5718/13, 5729/13 & 5711/13 Page 12 1922 Act. The nature of its activities has remained unchanged since its inception. Hamdard is a business held under trust for charitable purposes, which business is only the corpus of the trust and its source of income and not its object. It has not effected any change in its avowed activities and objects and has not violated any condition of the grant of exemption dated 28.12.2007; the present being merely a case where the Revenue seeks to take a different view on the same set of facts. The manufacture and sale of unani medicines is the Hamdard‟s business since its inception and this pre-existing business was dedicated to the cause of public charity by the founder-Wakif Mutawalli in 1948. Hamdard submits that comparing it with a commercial private pharmaceutical company is ill-founded and perverse as in the case of commercial companies the profits and gains are free for distribution amongst shareholders and there is no obligation to apply the same for charitable objects. On the other hand, no part of its income is distributed or is capable of distribution for the private benefit of the mutawallis.