DY. COMMISSIONER OF INCOME TAX(EXEMPTIONS)-2(1), MUMBAI, MUMBAI vs. SWAMI VIVEKANAND MEDICAL MISSION, MUMBAI

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ITA 3530/MUM/2024Status: DisposedITAT Mumbai19 November 2024AY 2020-21Bench: SMT. BEENA PILLAI (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the running of the medical store was incidental and ancillary to the main objective of the hospital providing medical relief. The Tribunal emphasized the principle of consistency, noting that similar claims had been accepted in previous assessment years. The Tribunal also pointed out that if the activity were to be considered business, only net profits, not gross receipts, should be taxed, and the AO failed to consider the expenses incurred.

What were the facts?

The Revenue filed appeals against the order of the CIT(A) who allowed exemption for the income from a pharmacy shop run by a charitable hospital. The Assessing Officer (AO) denied this exemption, treating the pharmacy income as business income unrelated to the hospital's charitable objects. The Revenue argued that the pharmacy operations were a separate profit-making venture, not incidental to the hospital's main purpose.

What were the issues?

Whether the income from a pharmacy run by a charitable hospital is incidental to its main objects and thus eligible for exemption under Section 11 of the Income Tax Act, or if it constitutes a separate business activity to be taxed.

Which sections of the Income-tax Act were involved?

Section 11(4A),Section 2(15),Section 143(3),Section 270A,Section 10(23C)(via)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SMT. BEENA PILLAI & SHRI PRABHASH SHANKAR

For Appellant: Shri Anil Sathe,CA
For Respondent: Shri Dr Kishore Dhule,CIT(DR)
Hearing: 28.10.2024Pronounced: 19.11.2024

आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त / CIT

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