- Commissioner of Income Tax v. Pulikkal Medical Foundation (P) Ltd. [1994] 210 ITR 299 (Ker) ” …merely because the assessee is running the hospital on commercial lines, it will not be disentitled to the exemption under section 10(22A) of the Act As long as the dominant purpose is a philanthropic one, the mere circumstance that the managing director or director gets some advantages or exercise some patronage while running the institution , that will not be a ground to hold that the main purpose of the institution is not philanthropic
- Breach Candy Hospital Trust Chief CIT, ITO and UOI
[2010] 322 ITR 246 (Bom)
“………..A hospital has many units and ultimately all receipts are used for treatment. In the absence of any material to show that generally there was a profit, it cannot be said that the petitioner does not exist solely for the philanthropic purpose but exists for the purpose of profit
3. Baun Foundation Trust v. CCIT &Anr (2012) 251 CTR (Bom.) 237 in which it was held that one has to consider whether the overall object is to make profit. If after meeting the expenditure any surplus results incidentally from the activity lawfully carried on by the institution, it will not cease to be one existing solely for the statutorily stipulated purpose so long as the object is not to make a profit. The dominant nature of the purpose has to be considered.