2006 (7) TMI 104

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....urn was posted for evidence. The assessee claimed that it is a charitable hospital solely existing for philanthropic purposes and not for the purpose of profit and as such is fully exempt from tax under section 10(22A) of the Income-tax Act, 1961. Reliance was also placed on the decision of this court in CIT v. Pulikkal Medical Foundation P. Ltd. [1994] 210 ITR 299. The assessing authority noticed that the facts in Pulikkal Medical Foundation P. Ltd.'s case [1994]  210 ITR 299 and the assessee's case are entirely different and took the view that the assessee is conducting the hospital on commercial lines and consequently not entitled to get exemption under section 10(22A) of the Act. It was also noticed that the assessee-hospital is fu....

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.... on commercial lines does not mean that the object of the trust is not charitable. Counsel also submitted that the income and expenditure statement would indicate that the excess of income over expenditure comes to Rs. 1,21,101 for the year 1989-90 and income for the purpose of income-tax was computed at Rs. 1,58,368 and the assessee is entitled to exemption under section 11 and also under section 10(22A) of the Income-tax Act. Counsel submitted that the Commissioner as well as the Tribunal are justified in interfering with the order passed by the assessing authority. 5 The question as to whether the institution is entitled to get exemption under section 10(22A) of the Act would depend upon the fact whether the institution exists solely fo....