1.  CIT vs Dharamshila Cancer Research Foundation- DHC: UPHELD ITAT ORDER:

"As rightly observed by the Ld. CIT(A) that profitability is not the sole criteria to judge the charitable nature of a society. In a charitable activity incident of profit can be there but that would not goad any quasi judicial authority to say that society ceases to be a charitable society. The AO fail to point out any defects in the objects of society or in the means of achieving those objects. His only area of grievance is that income is resulting to the society by carrying out such activity. But again he fail to take into consideration that such income was only applied for the purpose of charity. The AO also pointed out that assessee has entered into contracts with the doctors in such a way that the hospital should not suffer any loss. In our opinion from those contracts nothing adverse can be drawn against the assessee because in order to provide best facilities assessee is supposed to keep best doctors on its panels. Similarly it has to see that hospital should able to run its activity. If it starts losing the resources then its existence would be in dark."

Whether on the facts and in law, the Hon'ble ITAT was right in law in holding that distance of 2 kilometers for the purpose of section 2(14)(iii) of the Income Tax Act,1961 has to be taken in terms of approach by road and not as per straight line distance on a horizontal plane HELD : Accordingly question No. (1) is answered against the Revenue and in favour of the assessee by upholding the order of the Tribunal"

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