Philanthropic hospital exemption under section 10(22A) applies even when the foundation running it claims the benefit.

A hospital maintained solely for philanthropic purposes and not for profit qualifies for exemption under section 10(22A) of the Income-tax Act, 1961. The exemption applies to income of a hospital or similar institution used for the reception and treatment of persons suffering from illness, and it is not denied merely because the claimant is the foundation running the hospital. The provision was construed in line with the object of the institution and the beneficial nature of the exemption. Exemption was therefore available to the assessee, and the reference was answered in its favour.

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Issues: Whether a medical foundation running a hospital is entitled to exemption under section 10(22A) of the Income-tax Act, 1961, when the hospital is maintained solely for philanthropic purposes and not for profit.

Analysis: The exemption under section 10(22A) applies to income of a hospital or other institution used for the reception and treatment of persons suffering from illness, where the institution exists solely for philanthropic purposes and not for purposes of profit. The hospital run by the assessee satisfied these conditions, and the fact that the claimant was the foundation running the hospital did not defeat the exemption. The provision was construed consistently with the object of the institution and the beneficial character of the exemption.

Conclusion: The assessee was entitled to exemption under section 10(22A); the question referred was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: An running a hospital for purely philanthropic purposes and not for profit is entitled to exemption under section 10(22A), and the exemption is not denied merely because the claimant is the foundation that runs the hospital.

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