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TMI Blog1993 (7) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... without distinction as to religion, caste, creed. race. etc., medical relief and in particular :-- (i) To establish hospitals for the reception and treatment of persons suffering from physical illness or mental illness either generally or of any specific branches of medicine and surgery such as, for instance, diagnosis and treatment of Cancer, diseases of the heart, respiratory system, diseases of the chest, ENT Department, opthalmology, obstetrics and gynaecology, pediatrics, skin and venereal diseases, dentistry, etc. (ii) To establish Convalescent Homes for the reception and treatment of persons during convalescence. (iii) To establish Nursing Homes for the reception and treatment of persons requiring medical attention or rehabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions. The ITO made additions of Rs. 76,717, Rs. 15,000 and Rs. 5,781 for assessment years 1985-86, 1986-87 and 1987-88 respectively which, according to the ITO, represented accumulated income of those years which had not been utilised for 10 years. These additions were made, apparently, by resorting to provisions of section 11(3) of the Act. The ITO also held that exemption under section 11(2) was not available to the assessee because the assessee had not given any notice in Form No. 10 for accumulating part of income. He resorted the provisions of section 167A and held that the income was chargeable at maximum marginal rate. 5. In the appeals filed by the assessee, the Dy. CIT(A) held that exemption under section 10(22A) was available to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 10(22A) has been claimed on the basis of those activities. 8. However, as far as accounting years relevant to assessment years 1985-86, 1986-87 and 1987-88 are concerned, there was no such activity for the reception and treatment of persons. The assessee-trust, it is stated, could not obtain suitable accommodation for conducting such activity prior to April 1987 and hence such activity could not be carried on. The question therefore is whether exemption under section 10(22A) would be available to the assessee in spite of the fact that no activity for the reception and treatment of persons suffering physical illness and mental illness had been carried on by the assessee in the relevant accounting years. 9. Section 10(22A) is as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is referred to in said provision in addition to existence for philanthropic purposes was essential for application of the said provision. In the decision cited by the learned counsel for the assessee the institution in question had carried on the activity of treating patients in a dispensary as outdoor patients and the submission on behalf of the revenue was that the provisions of section 10(22A) would be attracted only if the activity was that of admitting 'in patients'. This submission of department was rejected by the High Court and it was held that it was not necessary that the patients must be admitted as indoor patients or that there must be facilities of such treatment in the institution for claiming the benefit under said provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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