SHREE PARMATMACHAND BHANDARI HOSPITAL AND RESEARCH CENTRE,JODHPUR vs. INCOME TAX OFFICER (EXEMPTION), JODHPUR

ITA 344/JODH/2026Status: DisposedITAT Jodhpur13 August 2026AY 2026-2711 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that operating medical mobile units under a government contract for medical relief does not convert the activity into business. The source of funding or contractual mechanism does not alter the charitable nature of medical relief, and TDS under section 194C is merely a procedural mechanism.

What were the facts?

The assessee, a Section 8 company with objects of medical relief, was denied regular registration under section 12A(1)(ac)(iii) and had its provisional registration cancelled. The CIT(E) cited the operation of medical mobile units under a government contract, TDS under section 194C, and alleged non-genuineness and siphoning of funds as reasons.

What were the issues?

Whether operating medical relief activities under a government contract constitutes business, and if alleged non-genuineness and payments to related parties are grounds for denying registration.

Which sections of the Income-tax Act were involved?

Section 2(15),Section 12A(1)(ac)(iii),Section 13(1)(c),Section 13(3),Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI AMIT SHUKLA, HON’BLE & SHRI GIRISH AGRAWAL, HON’BLE

For Appellant: CA (Physical)
For Respondent: DR (Physical)

PER BENCH: The aforesaid appeal has been filed by the assessee against the order dated 07.02.2026 passed by the learned Commissioner of Income Tax (Exemption), Jaipur [“Ld. CIT(E)”], whereby the assessee’s application for regular registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961 has been rejected and the provisional registration granted earlier on 06.08.2022 under section 12A(1)(ac)(vi) has also been cancelled.

2.

The assessee is a Section 8 company whose objects, as contained in its Memorandum of Association, are exclusively in the field of medical relief and 2 Asst. Year: 2026-27 healthcare. The principal object, inter alia, is to establish, maintain and run hospitals, nursing

The order continues below.

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