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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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The assessee is a charitable trust running a hospital. For the A. Y. 2008-09, the assessee declared total income at Nil claiming exemption u/s. 11. The Assessing Officer found that the assessee levied surcharge of 20% on the bills given to the patients and recovered 25% of the fees paid to honrary doctors. The Assessing Officer treated these amounts as corpus donations and denied exemption u/s. 11. The Tribunal allowed the assessee’s claim and deleted the addition.
On appeal by the Revenue, the Bombay High Court upheld the decision of the Tribunal and held as under:
“i) T he Tribunal concurred with its earlier order in relation to exemption. Despite the directions of the Charity Commissioner, the Revenue could not insist that the amount charged or surcharges levied should not be treated as income from the activities of the trust. The authorities under the Income-tax Act are supposed to scrutinize the papers and related documents of the trust or the assessee so as to bring the income to tax and in accordance with the Income-tax Act.
ii) In such circumstances, the concurrent finding did not in any manner indicate that the directions issued by the Charity Commissioner are incapable of being complied with or liable to be ignored. The directions issued did not change the character of the receipts. The appeal does not raise any substantial question of law.”