Income Tax Appellate Tribunal - Panji
Assistant Eputy Commissioner Of ... vs Lata Mangeshkar Medical Foundation,, ... on 29 September, 2017
आयकर अपीऱीय अधिकरण पण
ु े न्यायपीठ "बी" पण
ु े में
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "B", PUNE
सुश्री सुषमा चावऱा, न्याययक सदस्य एवं, श्री डी. करुणाकरा राव, ऱेखा सदस्य के समक्ष
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM
आयकर अपीऱ सं. / ITA No.987/PUN/2015
यििाारण वषा / Assessment Year : 2011-12
The Asst. Commissioner of Income Tax,
(Exemption) Circle, Pune .... अऩीऱाथी/Appellant
Vs.
Lata Mangeshkar Medical Foundation,
Deenanath Mangeshkar Hospital,
S.No.8, 13+2 Erandawane,
Near Mhatre Bridge, Pune - 411004 .... प्रत्यथी / Respondent
PAN: AAATL1944N
अऩीऱाथी की ओर से / Appellant by : Ms. Nirupama Kotru
प्रत्यथी की ओर से / Respondent by : Shri Sunil Pathak
सन
ु वाई की तारीख / घोषणा की तारीख /
Date of Hearing : 27.09.2017 Date of Pronouncement: 29.09.2017
आदे श / ORDER
PER SUSHMA CHOWLA, JM:
The appeal filed by the Revenue is against the order of CIT(A), Pune-10, dated 01.04.2015 relating to assessment year 2011-12 against order passed under section 143(3) of the Income-tax Act, 1961 (in short 'the Act').
2. The Revenue has raised the following grounds of appeal:-
1. Whether in the facts and in the circumstances of the case and in law the Ld.CIT(A) grossly erred in holding that the assessee is entitled to exemption under section 11 of the Income Tax Act, 1961?2 ITA No.987/PUN/2015
Lata Mangeshkar Medical Foundation
2. Whether in the facts and in the circumstances of the case and in law, the Ld. CIT(A) grossly erred in failing to appreciate the voluminous data and evidences gathered and used by the Assessing Officer which would clearly establish that the assessee was running its hospital, canteen and other activities along commercial lines, and, therefore, could not be treated as pursuing charitable objects?
3. Whether in the facts and in the circumstances of the case and in law, the Ld. CIT(A) grossly erred in diluting the concept of charity beyond recognition and in not taking any note of the spirit underlying this concept of charity recognition and in not taking any note of the spirit underlying this concept as used in the Income Tax Act, 1961?
4. Whether in the facts and in the circumstances of the case and in law, the Ld. CIT(A) grossly erred in holding that the assessee cannot be considered to have violated the provisions of section 13(1)(c) of the Act?
5. Whether in the facts and in the circumstances of the case and in law, the Ld. CIT(A) grossly erred in routinely dismissing the instances of violations of section 13(1)(c) brought out in the assessment order, particularly with regard to the unjustifiable payments made by the assessee to Mrs. Meena Kelkar and Mrs. Bharti Mangeskar?
3. The Revenue is in appeal against the order of CIT(A) in allowing exemption under section 11 of the Act to the assessee trust.
4. Briefly, in the facts of the case, the assessee was engaged in running hospital under the name and style Deenanath Mangeshkar Hospital at Erandwan, Pune. For the year under consideration, the assessee had declared total receipts of Rs.159.40 crores. The assessee trust was registered under section 12A of the Act. During the course of assessment proceedings, the Assessing Officer noted that the total receipts included canteen receipts of Rs.32.76 crores and other income of Rs.1.08 crores. The Assessing Officer also noted that the assessee was running the hospital with profit making motive which was evident from the surplus generated after depreciation at Rs.21.41 crores. The assessee had also incurred certain expenditure on the relatives of the trustees. In view thereof, exemption claimed under section 11 of the Act was denied to the assessee and the entire surplus was brought to tax.
3ITA No.987/PUN/2015
Lata Mangeshkar Medical Foundation
5. The CIT(A) following his order for the earlier years allowed the claim of assessee and held the assessee entitled to claim exemption under section 11 of the Act. Similarly, the issue regarding violation of provisions of section 13(1)(c) of the Act in respect of payments made to Mrs. Meena Kelkar and Mrs. Bharti Mangeskar was also allowed in view of similar issue raised in earlier years.
6. The Revenue is in appeal against the order of CIT(A).
7. The learned Authorized Representative for the assessee at the outset pointed out that the issue in the present appeal is squarely covered by the orders of Tribunal. He referred to the order of Tribunal dated 15.04.2016 relating to assessment years 2008-09 and 2009-10 in ITA Nos.2046/PN/2012 and 761/PN/2013. He further pointed out that the said issue has also been followed in assessee's own case in ITA No.712/PUN/2015, relating to assessment year 2010- 11, order dated 23.06.2017.
8. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the order of Assessing Officer.
9. We find that the issue of denial of claim of exemption under section 11 of the Act has been deliberated upon by the Tribunal in assessee's own case with lead order in assessment year 2008-09 and the said proposition has been followed in later years. The relevant findings of the Tribunal are in paras 48 to 62 of order dated 15.04.2016. The said findings of the Tribunal are being referred to but are not being reproduced for the sake of brevity. However, following the same parity of reasoning, we uphold the order of CIT(A) and hold that the assessee is entitled to 4 ITA No.987/PUN/2015 Lata Mangeshkar Medical Foundation claim the exemption under section 11 of the Act. Further, we also hold that there is no violation of provisions of section 13(1)(c) of the Act. Accordingly, the grounds of appeal raised by the Revenue are dismissed.
10. In the result, appeal of Revenue is dismissed.
Order pronounced on this 29th day of September, 2017.
Sd/- Sd/-
(D.KARUNAKARA RAO) (SUSHMA CHOWLA)
ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER
ऩण
ु े / Pune; ददनाांक Dated : 29th September, 2017.
GCVSR
आदे श की प्रयिलऱपप अग्रेपषि/Copy of the Order is forwarded to :
1. अऩीऱाथी / The Appellant;
2. प्रत्यथी / The Respondent;
3. आयकर आयुक्त(अऩीऱ) / The CIT(A), Pune -10;
4. The CIT (Exemption), Pune.
5. ववबागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩुणे "फी"
/ DR 'B', ITAT, Pune;
6. गार्ड पाईऱ / Guard file.
आदे शािस ु ार/ BY ORDER, सत्यावऩत प्रतत //True Copy// वररष्ठ तनजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण, ऩण ु े / ITAT, Pune