9911796707
TMI Blog2014 (1) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... est on its surplus/corpus funds would not lead to the fact that the assessee exists for profit purpose - The claim of the assessee has been correctly allowed by the CIT(A) – Decided against Revenue. Claim of deduction u/s 10(23C)(iiiea) of the Act – Held that:- The assessee's maternity hospital would have been facilitating the deliveries, i.e., a natural process of God – thus, it can in no way be said to be any illness to be treated in the assessee's hospital as envisaged u/s. 10(23C)(iiiae) - the ingredients of section 10(23C)(iiiae) being not fulfilled - the CIT(A) has rightly disallowed the claim of assessee –Decided against Assessee. - ITA No. 218/Agra/2013 - - - Dated:- 14-8-2013 - BHAVNESH SAIN AND A.L. GEHLOT , JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taxable income. The assessee challenged the addition before the ld. CIT(A) and also claimed that its income is exempt u/s. 10(23C)(iiiae) of the Income-tax Act. It was submitted that the assessee is a charitable trust running a maternity hospital and large number of deliveries and related operations are conducted in the hospital. Therefore, the assessee is entitled for exemption u/s. 11 as well as u/s. 10(23C)(iiiae) of the IT Act and the receipts do not exceed Rs.1 crore. The investment made in the FDRs with the bank is permissible mode u/s. 11(5) of the IT Act. The AO disallowed 15% of the income. Therefore, remaining should have been considered as the income applied to the charitable objects. The assessee relied upon the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards the objects of the assessee society. The funds invested in FDR have been shown in the balance sheet and is the property of the assessee-society. Merely because the assessee earns interest on its surplus/corpus funds would not lead to the fact that the assessee exists for profit purpose. The claim of the assessee has been correctly allowed by the ld. CIT(A). The departmental appeal has no merit and is accordingly dismissed. Cross Objection: 6. The assessee in the cross objection made a claim of deduction u/s. 10(23C)(iiiae) of the IT Act. The ld. CIT(A) held that the assessee is a general hospital pertaining to maternity while the hospital/Institution as envisaged in section 10(23C)(iiiae) is in respect of mental disease or illn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficient to grant relief under the above provisions to the assessee. It is worthwhile pointing out that the child birth is the natural process of God and it is certainly the God's grace which is extended to sustain us through it. It is the act of God who designs a child conceived in the womb to be born into this world. In olden days deliveries of children were perfectly conducted by midwives at home, but in the modern age, it is only because the anxiety of people that they would not be able to manage the discomfort or pains during labor, they choose to take better facilities in the hospitals in presence of Doctors for this purpose. Thus, it may be said that the assessee's maternity hospital in the instant case would have been facilitating th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
