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2017 (5) TMI 850 - SC - Indian LawsExemption from liability of paying building tax under the Kerala Building Tax Act, 1975 - charitable institution - Held that:- The Hospital at present conducts heart-transplant surgeries, kidney-transplant surgeries etc. It conducts a number of camps in rural areas as its health check-up programs for creating awareness on blood donation, organ donation, pain and palliative care, free home-care treatment to patients belonging to BPL, free dialysis for deserving patients, etc. The moderate charges which the hospital is levying from its patients, is not for generating profit for the hospital, but only as a mechanism to facilitate free treatment for poor patients, and to treat others at very reasonable rates, as the major chunk of the patients of the hospital belongs to the lower strata of the society. The hospital is charging patients at the lower rate prevalent in other hospitals of its class in the State. With due respect to the Bench which rendered the judgment in S.H. Medical Centre Hospital [2014 (3) TMI 187 - SUPREME COURT], it appears that an error in interpreting Explanation I to Clause 1 of Section 3 of the Act has occurred in not noticing that it contains the word “includes” and not “means”. This error led to holding that ‘charitable purpose’ meant only ‘relief of the poor and free medical relief’. Relief to the poor and free medical relief is only one of the facets of charitable purpose and Explanation simply clarifies that too be a charitable purpose. However, the inclusive definition points out that relief to poor and free medical relief is not exhaustive as to what charitable purpose would mean. Thus, in order to find out the true scope of charitable purpose, one will have to look into the judgments of this Court, even if this very expression is examined in the context of the Income Tax Act. We respectfully disagree with the opinion of the Division Bench in S.H. Medical Centre Hospital [2014 (3) TMI 187 - SUPREME COURT]. The matter, thus, requires consideration by a Larger Bench.
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