Dr Hasi Dasgupta Memorial Trust vs. Commissioner of Income Tax (Exemptions)

Parties Involved

Facts Summary

The assessee, Dr Hasi Dasgupta Memorial Trust, is a healthcare trust that applied for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The Trust had purchased a ResMed AirStart 10 APAP machine, a specialized respiratory device, which was intended to support its healthcare mission. The Commissioner of Income Tax (Exemptions) rejected the application, stating that the purchase did not constitute the commencement of activities. The Trust appealed this decision, arguing that the rejection was arbitrary and violated principles of natural justice. The appeal was heard, and the Tribunal found that the Commissioner had not justified the rejection and remanded the issue to the Commissioner with directions to grant the Trust another opportunity to provide documentary evidence.…

Legal Issues

• 1. Whether the purchase of the APAP machine constituted commencement of activities?
• 2. Whether the rejection order violated principles of natural justice?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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