2022 (6) TMI 1515 - HC - Income Tax

Assessment of trust - depreciation u/s 32 - as to whether the Assessee can claim double deduction - HELD THAT - Both the parties point out that the view taken by the Tribunal in favour of the Respondent Assessee following the decision in case of CIT vs. Institute of Banking Personnel Selection 2003 (7) TMI 52 - BOMBAY HIGH COURT has been approved by the Supreme Court in the case of Rajasthan Gujarati Charitable Foundation Poona 2017 (12) TMI 1067 - SUPREME COURT This question of law as sought to be urged therefore, does not arise for consideration as a substantial question of law having already been answered against the Revenue. Whether the Pharmacy/Chemist Shop run by Assessee, which is a Hospital, can be considered as an independent entity? - Tribunal had followed the decision of this Court in case of Baun Foundation Trust 2012 (4) TMI 172 - BOMBAY HIGH COURT . The Tribunal has also referred to other decisions of the coordinate benches of the Tribunal. The Division Bench of this Court has taken a view that if on the analysis of fact, it is found that running of Pharmacy/Chemist Shop is not a predominant activity of the Trust and is incidental to dominant object, the Pharmacy cannot be considered as an independent unit. On factual position is concerned, the finding of fact has been rendered by the Commissioner of Income Tax (Appeals), the Pharmacy run by the Hospital - Assessee was integrally attached to the activities of Assessee which finding of fact has been confirmed by the Tribunal. Nothing is shown to us how this finding recorded is perverse. No substantial question of law.

Summary

The Bombay High Court dismissed the Appeal filed by the Revenue challenging the Tribunal's decision on depreciation and the classification of a Pharmacy/Chemist Shop run by a Hospital as an independent entity. The Tribunal's decisions were upheld based on previous court rulings. The Appeal was found to have no merit and was dismissed.