TaxTMI 
TaxTMI 
2014 (1) TMI 556
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.... upon the facts and circumstances of the case, the Hon'ble Tribunal was justified in holding that the appellant's maternity hospital facilitating the deliveries is a natural process of god and cannot said to be any illness to be treated in appellant's hospital as envisaged under section 10(23C) (iiiae) of the Act." 4. The appeal is admitted on the aforesaid question and is taken for final disposal. 5. The Assessing Officer completed the assessment by an order dated 29 August 2011 under Section 143(3) of the Income Tax Act, 1961. The Assessing Officer assessed the total taxable income of the assessee at Rs.11,32,800. The assessee conducts a Maternity Hospital at Aligarh. An appeal was filed by the assessee before the CIT (A) claiming t....
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.... people that they would not be able to manage the discomfort or pains during labor, they choose to take better facilities in the hospitals in presence of Doctors for this purpose. Thus, it may be said that the assessee's maternity hospital in the instant case would have been facilitating the deliveries, i.e. a natural process of God. It, therefore, can in no way be said to be any illness to be treated in the assessee's hospital as envisaged u/s. 10(23C)(iiiae). Therefore, the ingredients of section 10(23C)(iiiae) being not fulfilled, the ld. CIT(A) has rightly disallowed the claim of assessee." 8. The correctness of the view of the Tribunal falls for consideration. 9. Section 10 provides for those incomes which shall not be included i....
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.... (ii) for the reception and treatment of persons during convalescence; or (iii) for the reception and treatment of persons requiring medical attention or rehabilitation. 12. There is no basis or justification to hold, as the CIT (A) held in this case, that clause (iiiae) is to be confined to hospitals or institutions dealing with mental diseases or illness rehabilitation. Even if the clause is read as a whole, it is clear that the reception and treatment of persons suffering from illness or mental defectiveness is one category which is covered by clause (iiiae). The sub clause thereafter specifically refers to reception and treatment of persons during convalescence; or of persons requiring medical attention or rehabilitation. The expr....
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....ence or of statutory interpretation. It is a matter of common experience that a hospital providing for maternity care has to deal with emergencies and on occasion, such hospitals have to provide emergent care which is often necessary to save the lives of the mother and the child. 14. We, therefore, do not accept the view of the Tribunal that patients visit hospitals of this nature only with a view to relieve themselves of the discomfort of pain during labor. As modern science, technology and knowledge have advanced, there is a considerable reduction of maternal mortality due to availability of expert medical care. 15. In these circumstances, both the views of the CIT (A) and of the Tribunal are not sustainable with reference to the pr....