2020 (2) TMI 674

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...., wherein they have observed that the petitioner cannot be given exemption from the tax, as per Section 86(e) of the Tamil Nadu District Municipalities Act, 1920, as the 1st petitioner though being a Medical Foundation (Public Charitable Trust) collected amounts for treatment and cost of medicines from the patients/public. Therefore, the petitioner was liable to pay the tax. 3. It is contention of the petitioners that the 1st petitioner is a Public Charitable Hospital and is therefore exempt from payment of tax under Section 83(1)(e) of the Tamil Nadu District Municipalities Act, 1920. The learned counsel appearing for the petitioners has produced the copy of the letter dated 02.02.2000 of the Commissioner of Income Tax acknowledging the a....

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....ing exemption of medical benefits u/s 17(2) of the IT Act - in the case of M/s. Shantha Medical Foundation, Trichy Main road, Villupuram - Forwarding of report - Reg. Ref: Letter dated 16.02.2016 in C.No.28/Hospital Approval /2015-16/272 from O/o the CCIT-4, Chennai ********** Kindly refer to the above The Joint Commissioner of Income tax, Villupuram range, Villupuram in his letter dated 29.07.2016 has endorsed the verification report dated 31.05.2016 submitted by the ITO, Ward-1, Villupuram. In his verification report, the ITO, Ward-1, Villupuram after inspecting and taking into account the facilities and general conditions of the hospital has opined that the hospital is satisfying the conditions prescribed in Rule 3A of the Income ....

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....en upheld by the Apex Court. 6.The learned counsel for the petitioners further submits that the petitioner is a Charitable Trust running Hospital and has been recognised as charitable by the Income Tax Authority as well. Therefore, the exemption of tax can be given to the 1st petitioner. 7. The learned counsel for the petitioner further drew my attention to a decision of the Madurai Bench of this Court in the Principal, Sarada Krishana Homeopathic Medical College, Kulasekaram Vs. The District Collector, Kanyakumari District and Others, 2011 (2) CWC 793, wherein the court it was held as follows:- 12.The reading of the demand notice shows that it is addressed to the Medical College, it was not open to the Town Panchayat, to impose proper....

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....etitioner as far as the hospital is concerned and hence, WP No. 13190 of 1992 is allowed. 24. Now coming to the other contention of the learned counsel for the petitioner that the Commissioner can issue notice within three years from the date on which such person should have been assessed and beyond that the Commissioner has no power as found in Section 168 of the Act, there is considerable force. There is no dispute that in all these case notices were issued on 24.4.1992 and the notices as well as demand show that the Commissioner has taken action under Section 168 of the Act on the basis of escaped assessment and further, there is no reference to Sections 128 and 129 of the Act as contended by the learned counsel for the respondent in S....