https://www.taxtmi.com/caselaws?id=19812 The Kerala HC held that a hospital qualified for tax exemption under section 10(22A) of the Income Tax Act despite earning profits. The court ruled that the primary test is whether the dominant purpose is philanthropic, not profit-making. Incidental profits earned for expanding hospital facilities or starting similar institutions do not disqualify the exemption. Key factors included: directors received no salaries or dividends, profits were reinvested in hospital expansion, and the memorandum prohibited profit distribution to shareholders. The court emphasized that modern philanthropy encompasses broader health and social welfare beyond just serving the poor, and assets would transfer to similar institutions upon winding up, confirming the philanthropic nature. en-us Thu, 05 Aug 1993 00:00:00 +0530 Mon, 07 Jul 2025 17:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19812 The Kerala HC held that a hospital qualified for tax exemption under section 10(22A) of the Income Tax Act despite earning profits. The court ruled that the primary test is whether the dominant purpose is philanthropic, not profit-making. Incidental profits earned for expanding hospital facilities or starting similar institutions do not disqualify the exemption. Key factors included: directors received no salaries or dividends, profits were reinvested in hospital expansion, and the memorandum prohibited profit distribution to shareholders. The court emphasized that modern philanthropy encompasses broader health and social welfare beyond just serving the poor, and assets would transfer to similar institutions upon winding up, confirming the philanthropic nature. Case-Laws Income Tax Thu, 05 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19812