TMI Blog2012 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... – directed to consider the application filed by petitioner. - WRIT PETITION NO.1206 OF 2010 - - - Dated:- 27-3-2012 - DR.D.Y.CHANDRACHUD M.S. SANKLECHA, JJ. Mr. S.C. Tiwari with Ms. Natasha Mangat for the Petitioner. Mr. Suresh Kumar for the Respondents. ORAL JUDGMENT (Per DR.D.Y.CHANDRACHUD, J.) : 1. The Petitioner is a public charitable trust created under a deed of trust dated 4 February 1964 and is registered under the Bombay Public Trust Act 1950. The trust runs the hospital in the name and style of Cumballa Hill Hospital and Heart Institution. The Petitioner has been granted the benefit of exemption under Section 10(22A) or Section 10(23C) (via) or under Section 11, as the case may be, upto Assessment Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the trust does not exist solely for the purposes of philanthropy. As a result, the application has been rejected. 3. Counsel appearing on behalf of the Petitioner submits that the fundamental test which is required to be adopted is whether the object of the trust is to make a profit or contrariwise whether the trust exists solely for philanthropic purposes. Learned counsel submitted that it is the dominant nature of the purpose for which the trust exists that has to be borne in mind and if that is found to be philanthropic, any other object merely ancillary or incidental to the primary or dominant purpose would not detract from the true nature or character of the trust. Consequently, it was urged that the Chief Commissioner has misap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even for philanthropic purposes to have a chemist shop where pharmaceutical products are sold. This is a facility which is intended to be used predominantly by patients and their relatives. Though the members of the general public are not prohibited from using the facility, the crucial question to ask or the test to answer is whether the establishment of a chemist shop is incidental or ancillary to the dominant object and purpose which is to set up and conduct a hospital for philanthropic purposes. As a matter of fact, Section 10(23C) permits the accumulation of income upto a certain stipulated amount over a stipulated period. In our view, the Chief Commissioner of Income Tax has clearly misapplied himself in law by having regard to a clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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