1. Franciscan
Sisters of St. Joseph Society Vs. Joint Commissioner of Income Tax,
I.T.A No. 1897 of 2013, Date of Order: 06.01.2014, ITAT - Chennai
Relief u/s 11 is available to hospital in respect of income from pharmacy run by it with in the hospital premises.
The
first item so considered by the assessing authority is the receipts from
pharmacy section. It is to be seen that assessee is running a
full-fledged general hospital at St. Thomas Mount. The assessing
authority has, no doubt, accepted the charitable nature of activities
carried on by the assessee-society in respect of that hospital. The
assessee is also running a dispensary. Number of patients are visiting
the hospital and dispensary on a daily basis. Patients are admitted as
in-patients and they are also treated as out-patients. For all the
in-patients undergoing treatment in the hospital, medicines are
delivered from the pharmacy run by the assessee-society.
In
respect of out-patients also, most of the patients purchase medicine
from the pharmacy run by the assessee. A few of the out-patients might
purchase medicines from outside. Likewise, few from the public living
nearby to the hospital may purchase medicines from the pharmacy run by
the assessee-society. The purchase of medicines by the public is
absolutely negligible. That negligible amount of sales, if any, cannot
decide the nature of activities carried on by the assessee in running
the pharmacy in its hospital premises. The pharmacy is not situated in
any commercial area or outside the hospital compound with the intention
to invite the public at large to purchase medicines from the pharmacy
run by the assessee-society. The assessee-society is running the
pharmacy within the premises of the hospital and as part of the hospital
itself. It is clear that the pharmacy is run by the assessee-society
only for the purpose of running the hospital. The hospital cannot be run
without a pharmacy attached to it. If an assessee wants to run a
hospital, running of the pharmacy is also a must. Therefore, running of
the pharmacy by the assessee-society is not an activity carried on by
the assessee incidental to the running of the hospital; but, on the
other hand, it is an integral part of the hospital run by the assessee.
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2. JHPL Holding (P) Ltd Vs. Asstt. Commissioner of Income Tax, I.T.A No. 6472/Del/2012, Date of Order: 04.07.2014, ITAT - Delhi
When
appeal of the assessee has been admitted in the Hon’ble High Court and
substantial question of law has been framed then the issue becomes
debatable and in this situation no penalty u/s 271(1)© of the Act is not
leviable on the assessee.
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3. ITO Vs. Karan Mehra, I.T.A No. 2075/Del/2011, Date of Order: 04.07.2014, ITAT - Delhi
The Ld
AO has no right to oppose additional evidence, once the same are
admitted by CIT (A), he can only adversely commet upon the merits of
additional evidene as to why & how the same are not applicable to
the given set of facts. Moreover in case of regular deposits &
withdrawalas from bank account both deposit and withdrawals has to be
taken in to account for making addition and not merely deposits i.e.
Peak credit theory.
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