ITAT ruled that pharmacy division income of appellant hospital ...

Pharmacy Division Income of Hospital Exempt Under Section 11(1) as Essential Part of Charitable Healthcare Services

February 19, 2025

Case Laws Income Tax AT

ITAT ruled that pharmacy division income of appellant hospital qualifies for exemption under Section 11(1) of Income Tax Act. The tribunal determined pharmacy operations were integral to hospital's dominant charitable purpose, not a separate business activity requiring distinct accounting under Section 11(4A). Following precedent in Jaslok Hospital case, ITAT found pharmacy services essential for both inpatient care and OPD treatment, directly supporting hospital's philanthropic objectives. The surplus from pharmacy operations was utilized for trust's charitable purposes. Accordingly, ITAT directed deletion of AO's addition, maintaining hospital's tax-exempt status for pharmacy division income.

View Source

← Previous Next →

ITAT ruled that pharmacy division income of appellant hospital ...

Pharmacy Division Income of Hospital Exempt Under Section 11(1) as Essential Part of Charitable Healthcare Services

February 19, 2025

Case Laws Income Tax AT

You may also like:

Exemption u/s 11 for surplus arising from a pharmacy store run by a hospital, and the deduction of 15% on gross receipts u/s 11(1)(a). Regarding the pharmacy store, it...

Exemption u/s.11 - Treatment of pharmacy income as income of charitable trust - the income from running the pharmacy which is integral part of the hospital is eligible...

Assessment of trust - healthcare / medical services - surplus out of Pharmacy store - charitable activity u/s 2(15) - the income accrued from Pharmacy store is...

Exemption u/s 11 - Charitable activity - running pharmacy store in the hospital and was selling drugs and medicines to the patients through this pharmacy store - AO was...

The appellant trust claimed to be formed for public charitable activities and registered under the Rajasthan Public Trust Act 1959, regularly filing its income tax...

Exemption u/s 11 - Charitable activity - running pharmacy store - income accrued there from was incidental to the dominant object of the respondent i.e., running of the...

Levy of GST - The supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care...

Even in the case of charitable hospital, it is not possible to provide medicines to every patient, free of cost. It is only in very deserving cases, a charitable...

Penalty u/s 271(1)(c) - failure on the part of legal heir of the deceased assessee to explain the source of part of the deposits - The mere failure on the part of the...

The ITAT ruled in favor of the assessee trust operating a hospital, holding that income from its pharmacy operations qualifies for exemption under Section 11. The...

To impose penalty u/s 271(1)(c), willful concealment is not an essential ingredient - HC

The Appellate Tribunal addressed the issue of exemption u/s 11 for income from property held for charitable purposes. It held that the provision of section 11(1)(a)...

Pharmacy shop is an integral part of the hospital business and the same is not hit adversely by the condition of maintain separate books as specified in section 11(4A)

Penalty u/s 271(1)(c) - accrual of income for assessee society - In assessee`s appeal assessing officer treated contribution towards welfare Fund and Hospital Fund as...

Penalty u/s 271(1)(c) - additional income was declared in survey u/s 133A - date of filing of return u/s 139(1) had not expired - The fact of “concealment of income” and...

Quick Updates: