No registration to Hospital as charitable organisation if charging commercial rates from patients

Fernandez Foundation Vs CIT (ITAT Hyderabad) Conclusion: Assessee hospital was not entitled for registration under section 12A as it was  charging on the basis of commercial rates from the patients and it had failed to demonstrate that the charges / fee charged by it were on a reasonable markup on the cost. Held:  Assessee-hospital applied for registration under Section 12AA of the Income Tax Act. However, CIT (E) rejected the application filed by assessee on the grounds that the assessee was involved in activities that were in the nature of trade and provides services at market rates. CIT(...