Balaji Medical & Diagnostic Research Centre - Assessee has withdrawn the appeal as the dispute would be settled under VSV Scheme

The Income Tax Appellate Tribunal heard an appeal filed by the Revenue against Balaji Medical & Diagnostic Centre concerning the assessment year 2011-12. The Revenue's grounds for appeal focused on whether the Centre's activities, despite appearing charitable, were commercial in nature and if it still qualified for income tax exemption. However, the appeal was ultimately withdrawn by the assessee as the dispute was settled under the Voluntary Settlement Scheme (VSV).

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.
APPELLANT 
PAN No: AAABB0018M

Vs.

Balaji Medical & Diagnostic
Centre,
New Delhi.
RESPONDENT

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 appeal 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 seem to be charitable in nature but the activities which yielded income of the 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 hospital 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.

3. Whether running of a hospital in commercial manner, without any perceptible element of charity and ploughing back the profit in expansion of the hospital qualifies the assessee to claim exemption u/s 11 & 12 as pursuing a charitable object.

4. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing.”

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