Case Law Details
It is an undisputed fact that Assessee is registered u/s 12AA of the Act. It is also an undisputed fact that Assessee had entered into transaction of sale of FFP with CBL and during the year and had supplied to CBL, FFP worth Rs 30.26 lacs. It is also an undisputed fact that CBL is an associate company of Assessee by virtue of majority shareholding held by Chudgar family in both the concerns. AO has held that the Assessee is not eligible for deduction u/s 11 and 12 of the Act as it falls within the purview of section 13(l)(c)(ii), 13(2)(b), 13(2)(d) and 13(2)(g) rws 13(3)(e) and Explanation 1 and Explanation 3 to section 13(3) of the Act as according to AO by entering into transactions with CBL, Assessee has granted concessional benefit to it by charging the price which is less than that charged by Assessee to the patients.
As per sub-section (6) a trust running an educational institution or a medical institution or a hospital shall not lose the benefit of exemption of any income other than the value of benefits of educational or medical facilities provided to the specified persons, solely on the ground that such benefits have been provided to specified persons. It should be noted that the sub-section covers,-(i) only those trusts running an educational institution or a medical institution or a hospital; (ii) the benefit extends only in respect of educational or medical facilities and not any other facility. In the present case, it is an undisputed fact that Assessee has entered transactions with the related concerns. It is also a fact that it cannot be said that the Assessee is an educational institution and cannot be said to be a hospital or medical institution as it is not engaged in dispensing medical facility though it is engaged in running a blood bank. We are of the view that in the present case considering the totality of facts, the activity of the Assessee cannot be considered to be engaged in medical facilities so as to be entitled to exemption of income.
INCOME TAX APPELLATE TRIBUNAL , AHMEDABAD
(BEFORE SHRI G.C.GUPTA VICE PRESIDENT
& SHRI ANIL CHATURVEDI, A.M.)
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