https://www.taxtmi.com/caselaws?id=400364 A charitable hospital or dispensary does not lose municipal property-tax exemption merely because it charges patients or occasionally generates surplus income. The governing test is whether the institution is charitable in substance, with service to the public as the dominant object and profit not the main purpose; any surplus must be applied to the institution's charitable objects and not diverted elsewhere. The text also treats income-tax recognition, compliance with imposed conditions, and actual deployment of surplus as relevant factors in assessing exemption. The authority must verify the factual use of income before rejecting the claim on the ground of surplus alone. en-us Thu, 29 Oct 2020 00:00:00 +0530 Tue, 03 Nov 2020 22:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400364 A charitable hospital or dispensary does not lose municipal property-tax exemption merely because it charges patients or occasionally generates surplus income. The governing test is whether the institution is charitable in substance, with service to the public as the dominant object and profit not the main purpose; any surplus must be applied to the institution's charitable objects and not diverted elsewhere. The text also treats income-tax recognition, compliance with imposed conditions, and actual deployment of surplus as relevant factors in assessing exemption. The authority must verify the factual use of income before rejecting the claim on the ground of surplus alone. Case-Laws Income Tax Thu, 29 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400364