https://www.taxtmi.com/caselaws?id=766158 ITAT Mumbai held that a hospital's pharmacy division constitutes an integral part of the hospital's dominant charitable purpose rather than a separate business activity. The tribunal ruled that medicines are essential for treating both in-house and OPD patients, making the pharmacy division necessary for fulfilling the trust's philanthropic objectives. Following precedent from a coordinate bench decision, ITAT determined the assessee hospital qualified for exemption under section 11(1) despite not maintaining separate books for the pharmacy division. The addition made by AO was directed to be deleted, granting the hospital full tax exemption benefits. en-us Mon, 17 Feb 2025 00:00:00 +0530 Wed, 19 Feb 2025 08:42:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766158 ITAT Mumbai held that a hospital's pharmacy division constitutes an integral part of the hospital's dominant charitable purpose rather than a separate business activity. The tribunal ruled that medicines are essential for treating both in-house and OPD patients, making the pharmacy division necessary for fulfilling the trust's philanthropic objectives. Following precedent from a coordinate bench decision, ITAT determined the assessee hospital qualified for exemption under section 11(1) despite not maintaining separate books for the pharmacy division. The addition made by AO was directed to be deleted, granting the hospital full tax exemption benefits. Case-Laws Income Tax Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766158