TMI Blog2017 (2) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... as were involved in the year before us. Therefore, we find it appropriate to send this appeal back to the file of Ld. CIT(A) who shall decide this appeal afresh after taking into account fact of this case more specifically on those issues as were raised by the Ld. DR before us. He shall also take into account, the decision relied upon by the Ld. Counsel before us, and adequate opportunity of hearing shall be given to the assessee to file written submissions and evidences before passing the appeal order. Ld. CIT(A) shall take into account entire material as may be placed on record by the assessee and shall pass detailed and well reasoned order after discussing facts of this case as well as applicable legal position. The assessee shall be fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has not maintained separate books of account in respect of pharmacy store. The assessee has not complied with that particular condition as required under the law? 4. The Appellant prays that the order of the Commissioner of Income Tax (Appeals)-1, Mumbai be set aside and that of the Assessing Officer be restored. 2. The brief background and facts of this case are that the during the year the assessee was registered as a Charitable Organization with DIT (Exemption), Mumbai, u/s. 12A and also with Charity Commissioner of Mumbai and was running a hospital and medical research centre. 3. During the course of assessment proceedings, it was noted by the AO that the assessee runs a pharmacy store in its hospital and has turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the submissions of the assessee and relying upon the order for A.Y. 2010-11, deleted the addition made by the AO by observing as under: 6.2 The issue has come up for consideration by the CIT(A)-I for A.Y. 2010- 11 also in its Ground No. 1 of appeal. Af ter considering the facts and circumstances on this issue, it was held that 7. I have considered the facts and circumstances of the case, assessment order of the A.O and submissions of the appellant. The AD has treated receipts from sale of medicines from the pharmacy store in the hospital run by the trust as business income and further resorted to application of section 11(4A) of the I. T. Act for this purpose. The contention of the appellant is that running of pharmacy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval granted by the Hon. CCIT u/s. 10(23C) (via) vide approval dated 07.04.2011 w.e.f . A.Y. 2009-10 is after satisfaction on the issue of 'existing Solely for philanthropic purposes and not for purposes of profit, as appearing in section 10(23C)(via), particularly when this issue had been examined and approved in the proceedings for granting such approval. The appellant has also furnished copy of submissions before the Hon. CCIT on this issue confirming that same was examined for that purpose and no adverse view was taken in reference to running of pharmacy. Therefore, under the similar facts and circumstances of the case there is no basis for treating the running of pharmacy as a business venture. No such material has been brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the order of the AO. It was submitted by the Ld. DR that Ld. CIT(A) did not verify even the basic fact before reversing the order by the assessing officer. It has not been verified whether the assessee is maintaining separate books of accounts with respect to pharmacy store because the AO had given adverse comments about the same. Further, the crucial fact whether the profit of the pharmacy store has been used for the purpose of running hospital in the charitable activities or it has been used for some other purposes has not been verified. It is also not clear whether that drugs and medicines are sold to indoor patients only or these are sold to outside persons also who were not admitted in the hospital. Therefore, the issue decided by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Ld. Counsel before us, and adequate opportunity of hearing shall be given to the assessee to file written submissions and evidences before passing the appeal order. Ld. CIT(A) shall take into account entire material as may be placed on record by the assessee and shall pass detailed and well reasoned order after discussing facts of this case as well as applicable legal position. The assessee shall be free to raise all the legal and factual issues as may be considered appropriate. With these directions this appeal is sent back to the file of Ld. CIT(A). 4. In the result, the appeal filed by the Revenue may be treated as allowed for statistical purposes. Order was pronounced in the open court at the conclusion of hearing. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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