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October 2024

Glimpses of Supreme Court Rulings

By Kishor Karia, Chartered Accountant | Atul Jasani, Advocate
Reading Time 8 mins

9 C I T (E), Pune vs. Lata Mangeshkar Medical Foundation

(2024) 464 ITR 706 (SC)

Charitable Purpose — Exemption — Principle of consistency — High Court upheld the order of the lower authorities which allowed the exemption based on earlier appellate orders which had become final — Special Leave Petition dismissed

The Assessee Trust was running a hospital by the name “Deenanath Mangeshkar Hospital” in Pune. During the assessment proceeding for Assessment Year 2010–2011, the Assessing Officer (“AO”) denied the exemption under Section 11 of the Income Tax Act, 1961 ("the Act") and then vide assessment order under Section 143(3) of the Act, computed the total income at ₹18,16,02,520. The exemption under section 11 of the Act was denied because —

(i) The Assessee-Trust had not furnished proper information to the Charity Commissioner and there was a shortfall in making provisionsfor the Indigent Patients Fund (“IPF”). According to AO, Assessee should have credited an amount of ₹2.14 crores to the IPF as against ₹75.96 lakhs only.

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