TaxTMI 
TaxTMI 
2016 (6) TMI 1486
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....he following grounds of appeal: "1. Whether, on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in upholding the order of the Id. CIT(A) whereby the Id. CIT(A) allowed the claim of depreciation of Rs 17,03,87,827/-, relying on the decision of the Hon'ble Bombay High Court in the case of CIT Vs. Institute of Banking Personnel Services reported at 264 ITR 110 (Bom) ignoring the ratio of Hon'ble Supreme Court judgments in the case of Escorts Ltd vs. Union of India (199 ITP 43) wherein Hon'ble Supreme Court has held that double deduction cannot be presumed if the same is not specifically provided by law, in addition to normal deduction. 2. Whether on the facts and in the cir....
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....eave to amend or alter any ground or add a new ground which may be necessary." Ground Nos.1 & 2 3. The brief facts relating to the above grounds are that the Assessing Officer (hereinafter referred to as the AO) during the assessment proceedings noted that the assessee hospital, a registered charitable trust, had claimed depreciation of Rs.17,03,87,827/- on capital assets, expenditure in respect of which has already been claimed by the assessee as application of income. The AO disallowed the claim of depreciation observing that it would amount to double deduction. 4. The Ld. CIT(A), however, relying upon the decision of the Hon'ble Jurisdictional Bombay High Court in the case of "CIT vs. Institute of Banking Personnel Selection" (2....
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....are hereby dismissed. Ground Nos.3 & 4 7. The brief facts relating to the issues raised vide ground Nos.3 & 4 are that the assessee hospital which is registered as a charitable trust under section 12 of the Act also runs a pharmacy store in the hospital. The AO noted that the turnover of the assessee's pharmacy store was very high which was around 13.18% of the total hospital collections from inpatient and outpatient profit from the pharmacy store came at 17.18% of its turnover. The AO assessed the income from the pharmacy store as business income by way of invoking provisions of section 11(4A) of the Income Tax Act observing that the receipts from the pharmacy were separate from the charitable activity of the assessee. 8. In appea....
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.... or ancillary to the dominant object and purpose which is to run a hospital. This is a facility which is intended to be used predominantly by the patients and their relatives. The Hon'ble Bombay High Court (supra) observed that where the running of a chemist shop was not the dominant object or purpose of the trust and where the surplus, which was earned from the operation of a chemist shop in the hospital, was utilized for the purpose of hospital and the establishment of a chemist shop in the hospital is incidental or ancillary to the dominant purpose of the trust/hospital, then, under such circumstances, exemption on this ground cannot be denied to a charitable trust under the provisions of section 10(23C)(via) of the Income Tax Act. The L....