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2010 (2) TMI 1132 - HC - Income TaxExemption u/s 11 - assessee-trust spent a sum towards the construction of a building - assessee has its prime object of running hospitals, nursing homes etc. for medical relief to the general public - ITAT concluded that amount spent by the assessee on the construction of the building in question was an expenditure incurred by it for the purposes of carrying out the charitable objects of the assessee-society and was an application of income for charitable purposes HELD THAT:- The object of the assessee-trust is primarily to run the hospital, nursing home etc. for medical aid to the general public. We are of the view that such object falls within the purview of charitable purposes defined u/s 2(15) of the Act. Construction of building for running the hospital or dispensary is the basic necessity. Without the building hospital cannot run and the medical facility cannot be provided to the public at large. Therefore, any expenditure incurred for the construction of the building is the expenditure incurred for charitable purposes. For the construction of the building if the land is taken on lease from PMT Society on which hospital was constructed and is being run, it cannot be said that the amount incurred in the construction of the hospital building on the land taken on lease from PMT Society was not for charitable purposes. We are of the view that the object of the PMT Society is wholly irrelevant to judge the object of the present assessee. However, the fact is that the object of PMT Society has also been treated as charitable object by the appellate authority which is valid till date. The Apex Court in the case of CIT v. Gujarat Maritime Board [2007 (12) TMI 7 - SUPREME COURT] has interpreted the words “any other object of generally public utility” of section 2(15) of the Act. It has been held that the said expression is of the widest connotation. The word ‘general’ in the said expression means pertaining to a whole class. Therefore, advancement of any object of benefit to the public or a section of the public as distinguished from benefit to an individual or a group of individuals would be a charitable purpose. Decided in favour of assessee.
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