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Judgment
The Revenue is aggrieved by an order dated 11-11-2005 passed by the income tax Appellate Tribunal, Delhi Bench ''B'' in ITA No. 1147 (Delhi) of 2002 relevant for the assessment year 1997 98. The Assessee runs a Cancer Treatment and Research Hospital in Ludhiana. Among other things, the Assessee provides medical services to employees of some companies. The Directors of these companies are trustees of the Assessee. For this reason, the Assessing Officer declined to grant exemption to the Assessee under the provisions of Section 10 (22A) of the income tax Act, 1961.
Feeling aggrieved, the Assessee filed an appeal before the Commissioner of income tax (Appeals). The appeal was allowed and thereafter the Revenue preferred an appeal before the income tax Appellate Tribunal.
It has come on record that from the memorandum of association of the Assesses, it is found to be a charitable trust u/s 12A (a) of the income tax Act. In the previous assessment years (from 1981 onwards) as well as in the subsequent assessment year, the Assessee enjoyed the exemption u/s 12A (a) of the Act.
The Tribunal has noted that the Assessee is not providing free medical services to the employees of the companies in question. On the other hand, it is providing free medical service to poor patients, while other patients have been charged including the employees of these companies.
The Tribunal has also noted that the statement of the patients and their earnings clearly show that the Assessee is providing free medical services to poor patients and that is why, it was granted exemption u/s 10(22A) of the Act for the previous assessment years as well as for the subsequent assessment year. Nothing has been shown to us to suggest that in so lat as the present assessment year is concerned, there has been any change in the circumstances.
That being the position, we do not think that the Tribunal has fallen into any error in dismissing the appeal of the Revenue.
We find that no substantial question of law arises. Dismissed.