TMI Blog2021 (2) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... y other institution which undertakes reception and treatment of persons suffering from illness etc., is also entitled to claim exemption u/s 10(23C)(iiiae) of the Act. On facts, the assessee is an institution which undertakes reception and treatment of persons suffering from illness. On this fact also the assessee s claim has to be upheld. On these facts and also keeping in view that the Revenue has been granting exemption to the assessee under this Section for earlier assessment years as well as for the subsequent years, we hold that the assessee is eligible for deduction u/s 10(23C)(iiiae) of the Act. - Decided in favour of assessee. - I.T.A. No. 2079/Kol/2019, I.T.A. No. 2080/Kol/2019 - - - Dated:- 19-2-2021 - Sri J. Sudhakar Reddy, Accountant Member And Sri Aby T. Varkey, Judicial Member For the Assessee : Sh. Ajay Kumar Gupta, A/R, appeared For the Revenue : Smt. Ranu Biswas, Addl. CIT, appeared ORDER PER J. SUDHAKAR REDDY, AM: Both these appeals filed by the assessee are directed against separate but identical orders of the Learned Commissioner of Income Tax (Appeals)-25, Kolkata [hereinafter the CIT(A) ], passed u/s. 250 of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act is available if the assessee is having a hospital and doing medical services by itself. He observed that the doctors are not regular employees of the assessee and they were employee of Bharat Sevashram Sangha, Kolkata and Vivekananda Swasthya Seva Sangha, Kolkata, on part time basis and that they have been paid very meagrely. He observed that the assessee could not establish that they are having permanent doctors for all treatments, much less specialised doctors. He held that hospital denotes reception centre, pathology lab, radiology and surgery department, female ward etc. He held that the term hospital denotes complete treatment of the patient. Thus he concluded that the assessee is simply a financier and is organizing medical camps with the help of deployment of doctors on a part time pay basis, for few days. He relied on the decision of the Kolkata High Court in the case of CIT(C) vs. Apeejay Medical Research Association Pvt. Ltd. for the proposition that there should be a nexus between the hospital and the income of the Trust. 2.5. He was of the view that the assessee has not proved any nexus from his source of income of running of the hospital. On facts, he conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f convenience and for running of better services. He argued that the fact, that the assessee is running a mobile hospital by itself cannot be rejected. 3.2. The ld. Counsel for the assessee pointed out that the assessee in its submissions made before the ld. CIT(A) stated that mobile hospitals serve the people in rural areas with poor connectivity and as the other organizations are aware of the geography and needs of the locality, the assessee is working in association with these charitable organizations. He submitted that the ownership and control of each of the mobile hospital vans is with the assessee. He prayed that the claim of the assessee for exemption u/s 10(23C)(iiiae) of the Act may be allowed. 4. The ld. D/R on the other hand opposed the contentions of the assessee and submitted that the assessee is not running any hospital and its mobile vans are purchased and operated through M/s. Bharat Sevashram Sangha and M/s. Vivekananda Swasthya Seva Sangha. She argued that the assessee is not running any medical services by itself and is merely reimbursing the bills of other charitable Trusts. She took this Bench through the order of the AO as well as the order of the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at remote rural areas. The term hospital has not been defined under this statute. In the Cambridge Dictionary the term hospital is defined as a place where people who are ill or injured are treated and taken care of by doctors and nurses . In the Collins Dictionary the term hospital is defined as a hospital is a place where people who are ill are looked after by nurses and doctors . There is no requirement for a hospital to be located in an immovable property. Meagre payments to doctors etc. cannot also be a reason to conclude that the assessee is not running any institution or hospital to cure the sick. 7. In the case on hand, admittedly the expenditure is incurred by the assessee for the purpose of payment to doctors, nurses and other medical staffs as well as for medicine etc. The mobile medical vans are owned, equipped, maintained, run and controlled totally by the assessee. If any organization has incurred expenditure on behalf of the assessee, they claim reimbursement of such expenses from the assessee. The term reimbursement means that the expenditure is that of the assessee and has been incurred on behalf of the assessee. 7.1. Even otherwise, even if it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee-society was only a financing body and will not come within the scope of 'other educational institution 'as specified in section 10(22). The object of the society was to establish, run, manage or assist colleges or schools or other educational institutions solely for educational purposes and in that regard to raise or collect funds, donations, gifts, etc. Colleges and schools were the media through which the assessee imparted education and effectuated its objects. In substance and reality, the sole purpose for which the assessee had come into existence was to impart education at the levels of colleges and schools and so, such an educational society should be regarded as an 'educational institution' coming within section 10(22). Therefore, the judgment of the High Court did not merit interference. The language of section 10(22) is plain and clear and the availability of the exemption should be evaluated each year to find out whether the institution existed during the relevant year solely for educational purposes and not for the purposes of profit. After meeting the expenditure, if any surplus results incidentally from the activity lawfully carried ..... X X X X Extracts X X X X X X X X Extracts X X X X
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