Dcit Circle 1 (E) Ahmedabad, Ahmedabad vs Adarsh Foundation, Ahmedabad on 26 December, 2024
8. We have heard the rival submissions and perused the relevant material
on record. We have gone through the findings of the AO as well as
CIT(A) part of which are reproduced above in this part of the order. We
find that the CIT(A) has arrived on the basic fact that agreement was
entered with the company was to secure trust is interest and nor to
indulge in the losses and for the purpose of reimburse the expenditure of
Kesar Sal Hospital. The object of the transfer agreement with SCPL was
to ensure that the hospital is managed professional, and in doing so the
purpose of charity is not violated as a reputed hospital of such huge size
requires professionally handling. We are also observed that the
agreement was not entered into to derive profit from transfer of movable
to SCPL but to counter the huge losses incurred in running two big
hospitals. Therefore, the CIT(A) has correctly held that the activity of the
trust to carried on in accordance with its objects and in the best interest
of charity, therefore, the exemption u/s. 11(1)(a) has rightly allowed by
ITA No. 1216/Ahd/2024
DCIT vs. Adarsh Foundation
Asst.Year -2017-18