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September 2024

Charitable purpose — Exemption — Denial of exemption by AO on grounds that assessee did not furnish proper information to Charity Commissioner, that there was shortfall in provision for indigent patients fund, that assessee had generated huge profits, that hospital did not serve poor and underprivileged class, and assessee paid remuneration to two trustees — Grant of exemption by appellate authorities on finding that orders for earlier assessment years not set aside in any manner or over-ruled by court — No infirmity in order of Tribunal granting exemption

By Keshav Bhujle and Ritu Punjabi, Advocates
Reading Time 2 mins

CIT(Exemption) vs. Lata Mangeshkar Medical Foundation

[2024] 464 ITR 702 (Bom.)

A.Y.: 2010–11

Date of order: 30th August, 2023

S. 11 of ITA 1961

38. Charitable purpose — Exemption — Denial of exemption by AO on grounds that assessee did not furnish proper information to Charity Commissioner, that there was shortfall in provision for indigent patients fund, that assessee had generated huge profits, that hospital did not serve poor and underprivileged class, and assessee paid remuneration to two trustees — Grant of exemption by appellate authorities on finding that orders for earlier assessment years not set aside in any manner or over-ruled by court — No infirmity in order of Tribunal granting exemption.

The assessee-trust was running a medical institution. For the A.Y. 2010–11, the Assessing Officer (AO) denied the assessee-trust exemption u/s. 11 of the Income-tax Act, 1961 on the grounds that (a) the assessee did not furnish proper information to the Charity Commissioner, (b) there was shortfall in making provision for indigent patients fund, (c) the assessee had generated huge surplus and theref

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