Commissioner of Income Tax vs Mukul Jain Medical Institute

B.N. Kirpal, J.—The respondent is stated to be an institution which was running a homeopathic dispensary on which the expenditure incurred was approximately Rs. 7,000. It had income from other sources including income from sale of shares which was sought to be taxed by the Income Tax Officer. Exemption was claimed by the respondent u/s 10(22A) of the Income Tax Act. The exemption was allowed by the Tribunal. The contention of the Revenue was that it is only the income of the hospital or an institution which is derived from its activities as a hospital or institution which is exempted from tax and that income from other sources like the present would be taxable. The question proposed by the Revenue involves the interpretation of section 10(22A) of the Income Tax Act and, in our opinion, a question of law does arise.

We, Therefore, direct the Tribunal to state the case and refer the following question of law to this court :

"Whether the Tribunal was justified in holding that the income of the assessed was entitled to exemption u/s 10(22A) of the Act ?"

There will be no order as to costs.