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2015 (12) TMI 1589 - ITAT MUMBAIExemption u/s 11 - pharmacy shop in hospital premises - activity of running a pharmacy shop as incidental to attainment of the objects of the trust - charitable trust - Held that:- Identically, Hon’ble jurisdictional High Court in Baun Foundation Trust vs Chief Commissioner (2012 (4) TMI 172 - BOMBAY HIGH COURT ) wherein, identically, the activity of chemist of was held to be incidental or ancillary to the dominant object and purpose to run a hospital. The Hon’ble Court held that running a chemist shop is not the dominant object for the purpose trust, therefore, the assessee’s application was allowed u/s 10(23C) (via) of the Act, by holding that application of approval cannot be rejected on the ground that running of a shop in the hospital is incidental for the purposes of the hospital. In the present appeal also, the chemist shop is part and partial of the hospital being incidental/ancillary to achieve the objects of the hospital, therefore, following the aforesaid decisions and also the case of Franciscan Sisters of St. Joseph’s Society (2014 (1) TMI 1754 - ITAT CHENNAI) wherein, running of pharmacy by the assessee society as integral part of running a hospital, ratio laid down in DIT (E) vs Agri-horticulture Society (2004 (7) TMI 44 - MADRAS High Court) we find no infirmity in the conclusion drawn by the ld. Commissioner of Income Tax (Appeals), more specifically when Karuna Medical Society the pharmacy shop is integral part and partial of the hospital. - Decided in favour of assessee.
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