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2014 (1) TMI 1754
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....e assessment completed under Section 143(3) of Income-tax Act, 1961. 2. The assessee is a society registered under the Societies Registration Act, 1860, on 26th February, 1955. The society is also granted registration under Section 12A, as a charitable institution, through an order of the Commissioner of Income Tax, Tamil Nadu - V, on 9.8.1973. The assessee-society is also registered with Ministry of Home Affairs, Government of India, for the purpose of reporting details and utilization of funds received from outside India. 3. As per the records available before us, the object of the assessee-society is to carry on charitable activities by involving in educational and medical relief activities along with programmes of rural developmen....
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.... that it is annexed to the St. Thomas Hospital and engaged in sale of medicine to public which amounts to business activity. Separate books of accounts are maintained for the pharmacy business. In the case of typewriting institute, the Assessing Officer has observed that assessee was collecting fees from students undergoing the training. Therefore, it is commercial in nature. In respect of working women's hostel, again the Assessing Officer has observed that facilities are provided against payment of fees and therefore, it is in the nature of business activity. In the case of crèche also, the Assessing Officer has observed that fees are collected against admission of children and therefore, it is an activity commercial in nature. ....
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....o the poor virtually at cost and would not make it an object of profit. (1.4) The Commissioner of Income Tax (Appeals) went wrong in holding that the appellant runs dispensaries in two places in a commercial manner, which finding is perverse; and in any event providing medical relief is covered in the first two limbs of Sec.2(15). (2.1) The Commissioner of Income Tax (Appeals) went confirming the disallowance of depreciation and that it amounts to double deduction. (2.2) The Commissioner of Income Tax (Appeals) failed to follow the various authorities cited before him and went wrong in relying on a decision which is not applicable to the facts of the case." 10. We heard Shri G. Baskar, the Advocate, appea....
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.... the pharmacy in its hospital premises. The pharmacy is not situated in any commercial area or outside the hospital compound with the intention to invite the public at large to purchase medicines from the pharmacy run by the assessee-society. The assesseesociety is running the pharmacy within the premises of the hospital and as part of the hospital itself. It is clear that the pharmacy is run by the assessee-society only for the purpose of running the hospital. The hospital cannot be run without a pharmacy attached to it. If an assessee wants to run a hospital, running of the pharmacy is also a must. Therefore, running of the pharmacy by the assessee-society is not an activity carried on by the assessee incidental to the running of the hosp....
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....counted by the assessee from its charitable activities. Therefore, Assessing Officer is directed to give exemption under Section 11 in respect of the pharmacy collection as well. 15. Once the pharmacy collection is treated as part of its charitable activities, the total of the remaining items work out to less than Rs. 10 lakhs. The law has provided as on date an exclusion of Rs. 10 lakhs from the rigours of denying exemption under Section 11, in respect of activities involving carrying on business or similar activities. The total of collection from typewriting institute, working women's hostel and crèche work out to less than Rs. 10 lakhs and therefore, by virtue of the exclusion clause, those amounts also cannot be considered for....