TMI Blog2015 (5) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properties. However, the Assessing Officer disallowed the claim of the assessee on the ground that deduction u/s 24(a) of the Act is inconsistent to the principles of revenue recognition involving charitable organizations. According to the ld. DR, in case of charitable organization, the income and expenditure has to be real one corresponding to inflow and outflow. Therefore, the Assessing Officer disallowed the claim of the assessee. However, on appeal by the assessee, the CIT(A) has allowed the claim of the assessee on the basis of the decision of this Tribunal in the assessee s own case for assessment year 2008-09 in I.T.A.No.1843/Mds/2011 dated 20.7.2012. According to the ld. DR, the income from house property cannot be allowed as exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case for assessment year 2008-09, the Assessing Officer found that this Tribunal granted relief to the assessee after adjudicating on the aspect as to whether the society was engaged in profit motive or not. The characteristics of the income derived by the society were never put forth before this Tribunal. Accordingly, the Assessing Officer found that the relief was granted to the assessee on totally different set of facts. After referring to section 10(23C)(iiiae) of the Act, the Assessing Officer found that in order to claim exemption u/s 10(23C)(iiiae), the income should be derived from medical facility and if income is derived from other sources, it would not be eligible for exemption u/s 10(23C)(iiiae)of the Act. We have carefully gone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from house property shall be taken as income of the Trust/Society. The computation of income from house property u/s 24 of the Act fails when the assessee claims exemption u/s 10 or 11 of the Act. In case, the income is not exempted u/s 10 or 11, the income from house property has to be computed u/s 24 of the Act. In view of the above, the assessee is not entitled for standard deduction of 30% as provided in section 24(a) of the Act. If the standard deduction is allowed, it would amount to double deduction. Therefore, this Tribunal is of the considered opinion that the assessee is entitled to claim the actual expenditure on maintenance of the house property as application of income, however, not entitled for standard deduction u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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