Under the Coimbatore City Municipal Corporation Act, 1981 lands and buildings of charitable hospitals and dispensaries are exempted from payment of property tax. The assessee claimed exemption under the Act in respect of hospital run by it which was denied. On writ dismissing the petition, the Court held that the expression \u201ccharitable hospitals and dispensaries\u201d had not been defined in the enactment. The word \u201ccharity\u201d means relief to poor. The exemption under the Income-tax Act, 1961 is confined to hospitals existing solely for philanthropic purposes and not for the purpose of profit and which is wholly or substantially financed by the Government. Where a society or body is making systematic profits, even though a portion of the profits is utilised only for charitable purposes, it cannot be said that it could claim exemption. Under section\u00a0135\u00a0of the\u00a0Companies Act, 2013\u00a0and the provisions of Companies Act, 1956, companies enjoying the profits were\/are required to contribute for public cause as corporate social responsibility. The amount that has to be spent towards corporate social responsibility is out of profits. However, that does not make such company a \u201ccharitable institution\u201d. A reading of the objects of the society indicated that the object of the hospital was not purely charitable in nature. The fact that the memorandum of the society itself authorised collection of charges from the persons receiving treatment in hospital, nursing school and work rooms indicated that the assessee\u2019s object was not a charitable hospital. The records filed before the court did not indicate that the assessee had obtained a section\u00a012A\u00a0certificate from the Commissioner under the provisions of the Income-tax Act, 1961. There were no records to show that even the Income-tax Department had allowed exemption under section\u00a011\u00a0of the Act, to the assessee. The assessee\u2019s claim for exemption under section 123(e) of the Coimbatore City Municipal Corporation Act, 1981 was not justified.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 123(e) : Municipal Property Tax-Exemption-Hospital-Hospital run by Society-Objects of society was not purely charitable-Exemption from Income-tax Act, 1961 was not granted-Hospital not exempt from Municipal Property Tax. [IT Act, 1961, S. 11, 12,12A, Companies Act, 2013, S. 135].<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29507","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7FV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29507"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29507\/revisions"}],"predecessor-version":[{"id":29508,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29507\/revisions\/29508"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=29507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=29507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}