2003 (3) TMI 74 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the Commissioner was not justified in setting aside the order of the Commissioner of Income-tax (sic) under section 263 of the Income-tax Act for the assessment years 1985-86 to 1987-88 and in directing the Assessing Officer to restrict the exemption under section 10(22A) only to that income which is directly received from the medical institution under section 10(22A)? - The question is answered in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee, a hospital, stating that all income received by the hospital, even from sources other than patient treatment, is exempt under section 10(22A) as long as the institution exists solely for philanthropic purposes and not for profit. The Tribunal's decision to grant exemption to the hospital's income was upheld.