Section 80G Recognition Denied as Trust Operated Hospital on Revenue-Sharing Model

Jeevan Rekha Trust Vs CIT (Exemption) (ITAT Ranchi)

CORE ISSUE : Whether a trust earning income by outsourcing its hospital building to a private entity and receiving consideration as a percentage of hospital turnover, with substantial recurring surplus and minimal charitable outgo, is entitled to recognition under Section 80G of the Income-tax Act, 1961.

BACKGROUND :- The assessee trust had acquired a building for the purpose of running a hospital. However, being unable to operate the hospital on its own, the trust outsourced the hospital

Please become a Premium member. If you are already a Premium member, login here to access the full content.