Section 11 exemption upheld on consistency with prior years despite objections over fund shortfall, surplus and alleged commercial activity.

Exemption under section 11 was sustained because the relevant assessment year was treated as identical to earlier years in which relief had already been granted. The appellate authority and the Tribunal followed the prior orders for assessment years 2008-2009 and 2009-2010, and no material showed that those orders had been set aside or overruled. On that basis, they found no reason to depart from the earlier consistent view, despite the Revenue's objections concerning the indigent patients fund, alleged commercial activity of the hospital, canteen operations, and section 13(1)(c). The assessee's charitable exemption therefore continued, and the Revenue's challenge failed.

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Issues: Whether the assessee trust was entitled to exemption under section 11 despite the Revenue's objections regarding the alleged shortfall in the indigent patients fund, the running of the hospital on commercial lines with surplus generation, the canteen activity, and the alleged violation of section 13(1)(c).

Analysis: The assessment year in question was treated as identical to earlier assessment years in which the assessee had already been granted relief. The appellate authority and the Tribunal followed the earlier orders for assessment years 2008-2009 and 2009-2010, and no material was shown to indicate that those orders had been set aside or overruled. In that view, the Tribunal found no basis to depart from the earlier consistent position and upheld the grant of exemption.

Conclusion: The assessee's entitlement to exemption under section 11 was sustained and the Revenue's challenge failed.

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