Commissioner of Income Tax vs Pulickal Medical Foundation (P.) Ltd.

T.L. Viswanatha Iyer, J.—These three petitions u/s 256(2) of the Income Tax Act, 1961, relate to the assessment years 1983-84, 1984-85 and 1985-86. The question raised for consideration is whether the assessee is entitled to exemption u/s 10(22A) of the Act. The same question arose for consideration in the years 1981-82 and 1982-83 and this court in the decision in Commissioner of Income Tax Vs. Pulikkal Medical Foundation Pvt. Ltd., , held that the assessee was entitled to exemption. It is stated before us that the Supreme Court has granted special leave to appeal against this judgment of this court.

The very same questions which were dealt by this court in the aforesaid reported case are sought to be referred by these petitions. The Tribunal dismissed the appeals based on the decision relating to the assessment years 1981-82 and 1982-83. In view of the fact that the very same questions arise for consideration in the subsequent years with which these petitions are concerned and in view of the fact that the Supreme Court has granted leave to appeal against the aforesaid judgment, we feel that the following questions of law which were dealt with may be referred to this court as arising out of the impugned order of the Tribunal as the questions cover all the aspects of the questions raised by the Revenue before the Tribunal, namely :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that it cannot be said that profit motive is involved in the activities of the assessee-company ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the observations of the lower authorities that since the institution is running on commercial lines it is not entitled to exemption u/s 10(22A), is irrelevant ?

Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee-company is entitled to exemption u/s 10(22A) of the Income Tax Act ?

Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in finding that,--

(i) the hospital is existing for philanthropic and charitable purposes ?

(ii) the requirement of public control and accountability is satisfied ?

(iii) the hospital is not run on commercial lines in the sense that the object is to make profit ?

(iv) so long as there is no such private gain in the year of account, the assessee is entitled to exemption u/s 10(22A) ?"

The Income Tax Appellate Tribunal, Cochin Bench, is, therefore, directed to state a case and refer the aforesaid questions of law for the opinion of this court u/s 256(2) of the Income Tax Act, 1961.

Communicate a copy of this judgment under the seal of this court and the signature of the Registrar to the Assistant Registrar of Income Tax Appellate Tribunal, Cochin Bench, for information and compliance.