2015 (10) TMI 1504

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..... erefore, the profit of the assessee-trust is applied only for charitable activity and there was a prohibition in the trust deed to divert the funds for any other object. Therefore, this Tribunal is of the considered opinion that merely because the assessee is charging fees for diagnostic service, it cannot be said that the assessee is not doing any charitable activity. Thus, the lower authorities are not justified in denying the assessee relief under section 11 of the Act as it is not doing any charitable activity. Whether diagnostic service cannot be considered to be a medical relief? - Held that:- In the modern medical field, no doctor could give any treatment without actually diagnosing the nature of illness. So, diagnostic service fa .....

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..... 61, as a charitable institution. The assessee-trust is claiming exemption under section 11 of the Act in respect of the income which is utilised for charitable activities. However, the Assessing Officer disallowed the claim of the assessee on the ground that the activity of providing diagnostic service is at a cost and is not undertaken in a charitable manner. The learned representative submitted that the assessee is collecting a very minimum amount from the patients, therefore, the Assessing Officer is not justified in rejecting the claim of the assessee. Referring to the order of the Commissioner of Income-tax (Appeals), the learned representative submitted that merely because the assessee is collecting minimum fees for the diagnostic fac .....

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..... ot this Tribunal is of the considered opinion that medical relief is also one of the charitable activity under the Income-tax Act. It does not require any charitable institution to provide medical relief at free of cost. What is required under the Act is that the profit of the institution cannot be distributed to any of the members/interested persons. In other words, the profit of the trust/institution shall be re-invested for charitable activities. 5. We have carefully gone through the trust deed of the assessee. Clause 15 of the trust deed clearly says that no funds shall be applied or paid or distributed among the trustees and shall be applied towards furtherance of the objects of the trust. Even at the time of dissolution, it shall b .....

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