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2017 (2) TMI 1324 - ITAT MUMBAIAllowing exemption u/s 11 - assessee Trust has violated the directions given by the Hon’ble Bombay High Court in respect to doctor’s fee is to be included in regard to creation of a IPF account and transfer the amount to IPF account for betterment of poor and indigent patient - Held that:- We find that the assessee is a public charitable trust registered under Bombay Public Trusts Act, 1950 by the charity commissioner since 1964. The assessee is registered u/s 12A and 80G. The assessee is engaged in quality health care at affordable rates to the members of the society of all strata. This institute started cardiac services in May 1999 by foxing on quality, safety and economy. During the year under consideration assessee’s gross receipts was to the tune of ₹ 37,55,60,944/- before considering the amount spent on the object trust permitted accumulation and the amount deemed to have been applied for the object of the Trust. There is no dispute about these facts. Hon’ble Bombay High Court on 17-08-2006 notified a scheme applicable to public charitable trusts registered under Bombay Public Trust 1950 which are running charitable hospitals including nursing home, maternity home, dispensaries or any other centre for medical relief whose annual income exceeds ₹ 5 lakhs. This scheme stipulates to provide compulsory free and concessional medical treatment to the indigent and weaker patients. As per the scheme Trust has to credit 2% of the gross billing to the Indigent Patient Fund every year and this fund should be utilized for providing medical treatment to the poor patients. There is no single evidence which would suggest otherwise. The rationale behind the same being that the doctor’s fees is not a part of the hospital's earnings, but rather a reimbursement to the hospital. The hospital merely acts as a collecting agent between the two for this particular aspect. Neither is there any evidence which would suggest the assessee’s status of that of a "Charitable Trust registered under the Bombay Public Trusts Act, 1950" being revoked by the Charity Commissioner. AO has no role in law by usurping the role of the Charity Commissioner and declaring that the assessee has breached the covenants of the Scheme. - Decided against Revenue.
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