TaxTMI 
TaxTMI 
2025 (2) TMI 1433
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....n record It was due to a mere change of opinion on the same set of facts considered in the original assessment proceedings It amounted to review of the original assessment order, which is impermissible in law. Denial of exemption under section 11 in respect of income of the Pharmacy Division 2) The Ld. CIT(A) erred in confirming the denial of exemption by the AO under section 11 in respect of the surplus of the Pharmacy division of the Hospital. 3) The Ld. CIT(A) failed to appreciate the fact that the pharmacy division of the Trust was an integral part of the Hospital itself, the revenues being that portion of the hospital bill of in-house patients representing value of medicines used for their treatment while admitted in the hospital 4) The Ld. CIT(A) erred in confirming the addition of the surplus of pharmacy division as business income, by applying the provisions of section 11(4A). 5) The Ld. CIT(A) failed to appreciate that there had never been any denial of exemption in respect of the pharmacy division in the past, thereby violating the principle of consistency. Opportunity of Hearing Not Provided ....
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....t of the income from the Pharmacy division and the Chemist shop of the Appellant Hospital under section 11. Your Appellant craves leave to add to, alter, delete or modify all or any the above grounds at the time of or before the hearing." ITA No. 4664/Mum/2023 for AY 2017-18 "Denial of exemption under section 11 in respect of income of the Pharmacy Division 1) The Ld. CIT(A) erred in confirming the denial of exemption by the AO under section 11 in respect of the surplus of the Pharmacy division of the Hospital. 2) The Ld. CIT(A) failed to appreciate the fact that the pharmacy division of the Trust was an integral part of the Hospital itself, the revenues being that portion of the hospital bill of in-house patients representing value of medicines used for their treatment while admitted in the hospital 3) The Ld. CIT(A) erred in confirming the addition of the surplus of pharmacy division as business income, by applying the provisions of section 11(4A). 4) The Ld. CIT(A) failed to appreciate that there had never been any denial of exemption in respect of the pharmacy division in the past, thereby violating the principle of....
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....rmacy has to be taxed as business income separately in view of the provisions of section 11(4A) of the Act. 6. Aggrieved with the order of Ld. AO, the assessee preferred an appeal before Ld. CIT(A). Vide order dated 27.10.2023, Ld. CIT(A) upheld the order of Ld. AO. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal and has taken as many as four grounds. 7. At the outset, it was submitted by the Ld. AR that the issue under consideration is identical to the appeal for AY 2014-15 which has already been heard and decided. The co-ordinate bench has decided the same issue in ITA No. 4666/Mum/2023 for AY 2014-15 vide order dated 17.02.2025 with the following observations: "19. On the basis of the above discussion, we are of the considered opinion that the case of the assessee hospital is very well covered by the judgement of the co-ordinate bench in the case of Asst. Director of Income Tax (Exemption)-II(1), Mumbai vs M/s Jaslok Hospital & Research Centre in ITA No.6853/Mum/2014 order dated 15/06/2016 (supra). 20. With regard to the income from the Chemist division, we would like to refer the judgement of the co-ordinate bench....
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....of in-house patients especially. The Assessee is also giving treatment to out-patients, and therefore out-patients and even outsiders as well, are at their liberty/option to purchase the medicines from the Assessee's Pharmacy store, as there cannot be any restriction. The Assessee may be on commercial basis but in fact, directly-indirectly providing medical relief by selling medicines to the in-house patients and outpatients and outsiders as well and therefore protected by CBDT Circular (supra) as well. It is also not the case here that the Assessee has established Chemist/Pharmacy store exclusively for outpatients/outsiders and has utilized surplus from the operation of a chemist shop, for other objects than the prescribed objects. Hence on the aforesaid analyazations, we don't have any hesitation to hold that running of the chemist shop is not only essential but also incidental or ancillary to the dominant object and purpose to run a hospital and thus the Assessee has complied with first condition of section 11(4A) of the Act. 7.6 Coming to the second condition of section 11(4A) of the Act, as to whether the Assessee is maintaining separate books of account in re....