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Challenge to order denying exemption under Section 10(23C)(via) of the Income Tax Act for assessment years 1999-2000 to 2002-2003. Analysis: The petitioner, a Cooperative Society, challenged the order of the Chief Commissioner of Income Tax declaring it ineligible for exemption under Section 10(23C)(via) of the Income Tax Act. This section pertains to organizations existing solely for philanthropic purposes, not for profit. The petitioner argued that its objectives aimed to benefit society by providing medical facilities at reasonable charges. However, the Income Tax Commissioner found the charges comparable to other hospitals, leading to the rejection of the petitioner's application. The petitioner contended that it sought information on how the Commissioner reached his conclusion but failed to provide specifics on the charges in their hospital compared to others. Although the petitioner mentioned another hospital benefiting under the same section, it lacked details to support its claim of similarity in charges. The court emphasized that philanthropy must benefit citizens directly, not merely running a hospital without additional benefits. Without evidence of philanthropic activities benefiting citizens, the petitioner's claim was deemed insufficient. The Commissioner highlighted the fees for OPD and payments to Member-Directors, concluding that the hospital's charges were on par with similar hospitals in the region. The absence of schemes for free or discounted treatments for the financially weaker sections indicated no significant difference in the hospital's receipts compared to other private hospitals. Consequently, the court upheld the Commissioner's decision, rejecting the petitioner's claim for exemption under Section 10(23C)(via) of the Income Tax Act for the specified assessment years.
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