9911796707
TMI Blog2016 (6) TMI 1486X X X X Extracts X X X X X X X X Extracts X X X X ..... t years - There is no question of double deduction in allowing the depreciation in respect of assets acquired and used by the trust. Assessment of income from the pharmacy store as business income - addition invoking provisions of section 11(4A) - treating the receipts from the pharmacy were separate from the charitable activity of the assessee - AO noted that the turnover of the assessee s pharmacy store was very high which was around 13.18% of the total hospital collections from inpatient and outpatient profit from the pharmacy store came at 17.18% of its turnover - HELD THAT:- Bombay High Court in the case of Baun Foundation Trust [ 2012 (4) TMI 172 - BOMBAY HIGH COURT] held that the activity of a chemist shop is an activity which is inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus was not hit by the provisions of section 11(4A) of the Act - Decided in favour of assessee. - SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER For the Assessee : Shri P.J. Perdiwalla, A.R. Madhur Agarwal, A.R. For the Revenue : Shri Asghar Jain V.P, D.R. ORDER Per Sanjay Garg, Judicial Member : The present appeal has been preferred by the Revenue against the order dated 22.08.2014 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2010-11. 2. The Revenue has taken the following grounds of appeal: 1. Whether, on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in upholding the order of the Id. CIT(A) wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and circumstances of the case and in law, the ld. CIT(A) is justified in allowing the claim of the assessee for exemption u/s. 11 ignoring the fact that assessee has not maintained separate books of accounts in respect of pharmacy store thus, the assessee has not complied with that particular condition as required under the law. 5. The appellant prays that the order of the Commissioner of Income Tax (Appeals)-1, Mumbai be set aside and that of the Assessing Officer be restored. 6. The Appellant craves leave to amend or alter any ground or add a new ground which may be necessary. Ground Nos.1 2 3. The brief facts relating to the above grounds are that the Assessing Officer (hereinafter referred to as the AO) during the assessment proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Jawaharlal Nehru Port Trust ITA No.9836/2013 and ITA No.1043/2013 vide order dated 08.06.2015 and in the case of the DIT (E) vs. Watch Tower Bible Trust Society of India ITA No.1548/12 decided on 10.12.2014 has concluded that there is no question of double deduction in allowing the depreciation in respect of assets acquired and used by the trust. In view of the above decision of the Hon ble Jurisdictional Bombay High Court, the ground nos.1 2 of the Revenue s appeal are hereby dismissed. Ground Nos.3 4 7. The brief facts relating to the issues raised vide ground Nos.3 4 are that the assessee hospital which is registered as a charitable trust under section 12 of the Act also runs a pharmacy store in the hospital. The AO noted that the tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herwise also contributes in saving the life of patients by making available the treatment and medicines without loss of time. The Ld. A.R. has further brought our attention to the recent decision of the Hon ble Bombay High Court in the case of Baun Foundation Trust vs. Chief Commissioner of Income Tax (2013) 33 taxmann.com 677 (Bombay), wherein, the Hon ble Bombay High Court has held that the activity of a chemist shop is an activity which is incidental or ancillary to the dominant object and purpose which is to run a hospital. This is a facility which is intended to be used predominantly by the patients and their relatives. The Hon ble Bombay High Court (supra) observed that where the running of a chemist shop was not the dominant object o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bench of the Tribunal, thus, has held that the running of pharmacy which was the necessary requirement of running a hospital and for providing timely medical aid to the patients, thus, was not only incidental but was integral part of the objects of the assessee trust and thus was not hit by the provisions of section 11(4A) of the Act. The above decisions of the Hon ble Bombay High Court and of the co-ordinate bench of the Tribunal are squarely applicable to the case of the assessee. In view of this, we do not find any merit in the ground nos.3 4 raised by the Revenue. 10. Ground Nos.5 6 are general in nature and do not require any adjudication. 11. In the result, we do not find any merit in the appeal of the Revenue and the same is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
