2001 (11) TMI 27 - HC - Income Tax

Medical Institution, Exemption - The assessee runs a hospital. For the assessment year 1986-87, the assessee was denied exemption that had been claimed by it under section 10(22A) of the Income-tax Act, 1961. The denial was on the ground that in the view of the Assessing Officer, section 10(22A) required the claimant to be the hospital and not the foundation which ran the hospital. - The question referred to us is, therefore, answered in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee, a medical foundation running a hospital, allowing exemption under section 10(22A) of the Income-tax Act, 1961. The court held that the hospital was operated solely for philanthropic purposes, not for profit. The judgment was influenced by previous cases supporting exemptions for educational institutions and societies. The decision was against the Revenue.