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2015 (5) TMI 1116 - AT - Income TaxExemption u/s 10(23C) - Held that:- The aggregate annual receipts of the institution/hospital from all sources including the running of the hospital received by the assessee for providing treatment should be covered by section 10(23C)(iiiae) of the Act. When the hospital has house property which was held under the trust, the income earned by the assessee from such house property shall also form part of the aggregate annual receipts of the institution provided the same is utilized for providing treatment. It is well settled principles of law that the taxation law has to be interpreted without adding any word to the language employed by the Parliament. When the Parliament does not say that the income shall be derived from hospital for medical relief, it may not be proper for the Assessing Officer to say that income shall be derived from the hospital. When the assessee has income from other sources including the income from house property and the aggregate annual receipts exceeds ₹ 1 crore, the assessee is not entitled for exemption u/s 10(23C)(iiiae). However, if the annual receipts do not exceed ₹ 1 crore, the assessee is definitely entitled for exemption u/s 10(23C)(iiiae) of the Act. Standard deduction allowed u/s 24(a) while computing income from house property - Held that:- The gross income from house property has to be taken without allowing any deduction u/s 24(a) of the Act. Accordingly, the order of the lower authority is set aside and the Assessing Officer is directed to take the gross rental income from house property without any deduction u/s 24(a) of the Act. However, it is made clear that the actual expenditure incurred by the assessee for maintenance of the building shall be allowed as application of income either u/s 11 or 10(23C) of the Act.
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