SMT. VIMAL CHAWLA CHARITABLE TRUST,FARIDABAD vs. CIT EXEMPTION, CHANDIGARH

Upon perusal of para 3.3 of the impugned order, it could be gathered that the assessee is running a hospital by the name ‘NIMS’ since its inception and providing medical and health care services. Though the assessee was running a hospital, it failed to furnish any document to show that the hospital was being run for charity or providing servcies at nominal fees. The assessee had large surplus in Income & Expenditure for the year ending 31-03-2022. It was finally conldued by Ld. CIT(E) that the hospital had nothing to do with charity rather it was set up to earn profits. Accordingly, the application was rejected against whcih the assessee is in further appeal before us.

The assessee’s financial statements for FYs 2021-22 to 2023-24 has been palced on Page Nos.20 to 31 of the paperbook. The perusal of these financials would show that the assessee is always having large surplus of more than 13% in each of the three years. The donations being receievd by the assessee in FYs 2021-22 & 2022-23 are ‘nil’ wheres it has received nominal donations of Rs.8 Lacs only during FY 2023-24. No expenditure is shown to have been incurred on charity. Upon perusal of these financials, it could very well be concluded that the hospital is being run as a commercial organisation only. No element of charity is shown in the same. The only evidneces relied upon by Ld. AR are printed pamhplets for free mega health checkup camps on various dates which are coupled with few photographs. However, there no data is available for identification of patients, number of patients and charitable treatment offered by the assessee to these patients during these camps. The perusal of these documents hardly inspire any confidence in us to support the assessee’s plea of carrying out of charitable activities. This being so, no intereference is required in the impugned order rejecting the relevant registration application of the assessee.