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TMI Blog2016 (11) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... urt held that running a chemist shop is not the dominant object for the purpose trust, therefore, the assessee’s application was allowed u/s 10(23C) (via) of the Act, by holding that application of approval cannot be rejected on the ground that running of a shop in the hospital is incidental for the purposes of the hospital. In the present appeal also, the chemist shop is part and partial of the hospital being incidental/ancillary to achieve the objects of the hospital, therefore we decide the sole issue urged by the assessee in his favour. - ITA No.5861/MUM/2015 - - - Dated:- 9-9-2016 - SHRI G.S.PANNU (AM) AND SHRI. RAM LAL NEGI (JM) For The Appellant : Shri. A. Ramchandran For The Respondent : Ms. Aarti Vissanji and Shri. Kas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the objects of the trust as well as running shop is not a planned activity, though assessee is paying VAT on sales, with an intention of earning income side by side . 2) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A), Mumbai is justified in allowing claim of the assessee for exemption for exemption u/s11 by ignoring the fact that the Assessing Officer in his order has pointed out that assessee runs a pharmacy store in its hospital for profit motive and without approaching facts that the assessee s profit from the Pharmacy store is ₹ 1,45,09,795/- and gross receipts of assessee society are ₹ 2,38,34,439/- including of pharmacy surplus. 4. Before us the Ld. Departmental Representat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or any institution, being profit gains of business, unless the business is incidental to the attainment of the objective of the trust or, as the case may be, institution, and separate books of accounts are maintained by such trust or institution in respect of such business. Section 11(4A) was inserted by the Finance Act, 1983 w.e.f. 01/04/1984, in relation to any income being profit gains of any business, unless (a) the business is carried on by the trust wholly for public religious purposes/charitable purposes and is carried out. It has been further elaborated in the departmental Circular NO.372 dated 08/12/1983 and further discussed in CIT vs Thanthi Trust (2001) 247 ITR 785, 795 (SC) holding that section 11(4A), as is stood from A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the trust or the institution as the case may be and (b) separate books of accounts are maintained by such trust or institution in respect of such business. In ACIT vs Thanthi Trust (2001) 247 ITR 785 (SC), affirming Thanti Trust vs ACIT (1999) 238 ITR 635 (Mad.) it was held that the scope of section 11(4A) operative for and from A.Y. 1992-93, is more beneficial to a trust of institution then was the scope of section 11(4A), as it was operative for A.Y. 1984-85 to 1991-92. Section 11(4A), as it stand for and from A.Y. 1992-93, all that is required for the business income of a trust or a institution to be exempt from a tax is that the business should be incidental to the attainment of the objectives of the trust or institution. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.1897/MDS/2013) order dated 06/01/2014, wherein, running of pharmacy by the assessee society as integral part of running a hospital, ratio laid down in DIT (E) vs Agri-horticulture Society (2005) 273 ITR 198, we find no infirmity in the conclusion drawn by the ld. Commissioner of Income Tax (Appeals), more specifically when the pharmacy shop is integral part and partial of the hospital. We affirm the same. 8. Since, the identical issue has already been decided by the co-ordinate Bench in assessee s own case, we have no reason to deviate from the view taken by the co-ordinate Bench. Hence, respectfully following the decision of the co-ordinate Bench in assessee s own case aforesaid, we decide the sole issue urged by the assessee in h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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