ACIT(E)- CIRCLE- 1(1), NEW DELHI V. BALAJI MEDICAL & DIAGNOSTIC RESEARCH CENTRE, NEW DELHI

ITA 5776/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9599 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Section: 12A; 12; 11

Judgement Text

ITA NO.-5776/DEL/2017. BALAJI MEDICAL & DIAGNOSTIC RESEARCH CENTRE PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: B: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 5776/DEL/2017 ( ASSESSMENT YEAR: 2011-12) ACIT(E), CIRCLE-1(1), NEW DELHI. VS. BALAJI MEDICAL & DIAGNOSTIC CENTRE, NEW DELHI. APPELLANT RESPONDENT PAN NO: AAABB0018M REVENUE BY : MS. NIDHI SRIVASTAVA, CIT(DR) ASSESSEE BY : MS. SHREYA SINGHAL, CA PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY REVENUE IS FILED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-40, DELHI, [LD. CIT(A), FOR SHORT], DATED 19.06.2017 FOR ASSESSMENT YEAR 2011-12. GROUNDS TAKEN IN THIS APP EAL OF REVENUE ARE AS UNDER: 1. LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY IGNORING THE FACT THAT THOUGH THE OBJECTS OF THE ASSESSEE SE EM TO BE CHARITABLE IN NATURE BUT THE ACTIVITIES WHICH YIELDED INCOME OF T HE ASSESSEE ARE COMMERCIAL IN NATURE. 2. THE SOCIETY I.E. BALAJI MEDICAL AND DIAGNOSTIC RESEARCH CENTRE WHICH WAS ALLOWED REGISTRATION U/S 12A HAS CEASED TO HAVE ANY EFFECTIVE FUNCTION AS FAR AS HOSPITAL IS CONCERNED. THE RUNNING OF THE HOSPI TAL IS GOVERNED BY THE PROFIT MOTIVE FOR THE BENEFIT OF MAX GROUP, HENCE, CLAIM FOR EXEMPTION U/S 11 & 12 OF THE ASSESSEE IS NO LONGER JUSTIFIABLE. ITA NO.-5776/DEL/2017. BALAJI MEDICAL & DIAGNOSTIC RESEARCH CENTRE PAGE 2 OF 4 3. WHETHER RUNNING OF A HOSPITAL IN COMMERCIAL MAN NER, WITHOUT ANY PERCEPTIBLE ELEMENT OF CHARITY AND PLOUGHING BACK T HE PROFIT IN EXPANSION OF THE HOSPITAL QUALIFIES THE ASSESSEE TO CLAIM EXEMPT ION U/S 11 & 12 AS PURSUING A CHARITABLE OBJECT. 4. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR A MEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. (B) AT THE TIME OF HEARING, AT THE OUTSET, THE LD. AUT HORIZED REPRESENTATIVE (LD. AR, FOR SHORT) FOR THE ASSESSEE INFORMED US THAT THE AS SESSEE HAS OPTED FOR VIVAD SE VISHWAS SCHEME, 2020 (VSVS, FOR SHORT) FOR THE SETTLEMEN T OF SUBJECT MATTER OF THE DISPUTES IN THIS APPEAL. SHE DREW OUR ATTENTION TO LETTER DATE D JANUARY 04, 2021 FILED FROM ASSESSEES SIDE IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) GIVING INTIMATION OF THE SAME. A COPY OF DECLARATION FILED BY ASSESSEE IN RESPECT OF THE AFORESAID VSVS WAS ALSO ENCLOSED WITH AFORESAID LETTER DATED 04/01/2021. AT THE TIME OF HEARING BEFORE US, THE LD. AR FOR ASSESSEE SUBMITTED BEFORE US THAT THIS APPEAL MAY B E DISMISSED ON ACCOUNT OF THE AFORESAID VSVS. THE LEARNED COMMISSIONER OF INCOME TAX (DEPARTMENTAL REPRESENTATIVE) [LD. CIT(DR), FOR SHORT] DID NOT EXPRESS ANY OBJE CTION TO THIS. AFTER DUE CONSIDERATION, AND IN VIEW OF THE FOREGOING; WE TREAT THIS APPEAL AS WITHDRAWN BY REVENUE ON ACCOUNT OF THE AFORESAID VSVS. ACCORDINGLY, THE APPEAL IS DI SMISSED BEING TREATED AS WITHDRAWN. (B.1) BEFORE WE PART, WE HEREBY CLARIFY, BY WAY OF ABUNDA NT CAUTION, THAT IF FOR SOME REASON IT IS FOUND BY REVENUE THAT THE DISPUTE S UNDER THIS APPEAL BEFORE US ARE NOT FULLY SETTLED UNDER THE AFORESAID VSVS, THEN REVENUE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THIS AP PEAL, IN ACCORDANCE WITH LAW. ITA NO.-5776/DEL/2017. BALAJI MEDICAL & DIAGNOSTIC RESEARCH CENTRE PAGE 3 OF 4 (B.2) WITH THESE DIRECTIONS, THE AFORESAID APPEAL OF REV ENUE IS DISMISSED, BEING TREATED AS WITHDRAWN. (C) FOR STATISTICAL PURPOSES, THIS APPEAL IS DISMISSED. THIS ORDER WAS ALREADY PRONOUNCED ON 05 TH JANUARY, 2021 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES; AFTER CO NCLUSION OF THE HEARING. SD/- SD/- (H.S. SIDHU) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 05/01/2021 (POOJA) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.-5776/DEL/2017. BALAJI MEDICAL & DIAGNOSTIC RESEARCH CENTRE PAGE 4 OF 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER