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| The Tax Publishers2020 TaxPub(DT) 1612 (Bom-HC) INCOME TAX ACT, 1961
Section 11
Pharmacy store of assessee was ancillary to main object of running the hospital and income accrued there from was incidental to the dominant object of the respondent i.e., running of the hospital.
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Charitable trusts - Exemption under section 11 - Whether pharmacy store of assessee was ancillary to the main object of running the hospital -
Issue arose as to whether pharmacy store of assessee was ancillary to the main object of running the hospital. Held: Following PCIT(Exemption) v. National Health and Education Society (2020 (3) TMI 178 - BOMBAY HIGH COURT), pharmacy store of assessee was ancillary to the main object of running the hospital. Therefore, income accrued there from was incidental to the dominant object of the respondent i.e., running of the hospital. Thus, AO was not justified in treating the pharmacy store of assessee the respondent as a separate business entity and to hold the surplus amount accrued there from as business income under section 11(4A).
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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