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Case Law Details

Case Name : St. Barnabas Hospital Vs C.I.T (Exemption) (ITAT Ranchi)
Appeal Number : ITA No. 269/Ran/18
Date of Judgement/Order : 05/04/2019
Related Assessment Year : 2018-19
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St. Barnabas Hospital Vs C.I.T (Exemption) (ITAT Ranchi)

 We note that the society trust was maintaining Pharmacy medical shop inside the hospital, which was for in-house consumption of medicines and treatment packages and for the urgent need of medicines to in-house patients. We note that the objects of the society were not doubted by the ld. CIT(E). Therefore, we note that in order to obtain registration u/s. 12AA only objects of the assessee trust is to be examined. We further note that the assessee society’s main object of running a hospital, which is covered u/s. 2(15) of the Act as charitable purposes being ‘medical relief’. Therefore, simply non-maintenance of separate books cannot be a ground for rejection of registration u/s. 12AA of the Act. We note that the assessee society is also providing medical relief and facilities to every person, conducting blood donation, eye operation, tikakaran, family planning, mother child safety, AIDS, malaria, T.B, Kustorog and awareness to general public by way of awareness of medical camps. Therefore, to run the medical shop inside the hospital is fully charitable purpose and not for commercial purpose. We note that if the assessee is not maintaining separate books of account for the said medical shop does not mean that the assessee is not entitled for obtaining registration u/s. 12AA of the Act. We note that in order to grant registration the objects of the assessee society is to be examined. Therefore, the ld. CIT( E ) should not deny the grant of registration u/s. 12AA merely because assessee is running medical shop inside the hospital. Therefore, we direct the ld. CIT ( E ) to grant the registration u/s. 12AA of the Act, in accordance with law.


The captioned appeal filed by the assessee, pertaining to assessment year 2018-19, is directed against the order passed by the Commissioner of Income-tax (Exemption), Patna, in I.T /Appeal/Memo No. CIT E/Pat/12AA/ 04(167)/2018-19/358-62, dated 14-05-2018.

2. The grounds of appeal raised by the assssee are as follows:-

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July 2024