COMMISSIONER OF INCOME-TAX Vs. APEEJAY MEDICAL LTD.

JUDGEMENT

(1.) Both for the assessment years 1986-87 and 1987-88, the Assessing Officer held that the assessee was not entitled to the benefit under Sec. 10(22A) of the Income Tax Act, 1961, hereinafter referred to as the "Act". The CIT(A) concurred with the views of the Assessing Officer. In an appeal carried by the assessee to the Tribunal the Tribunal was of the opinion that the assessee deserved the benefit under Sec. 10(22A). The revenue applied for reference, which was refused by the learned Tribunal. The revenue, in the circumstances, came up before this Court under Sec. 256(2) of the Act. The application was taken up for hearing on 16th July, 1997 when a Division Bench of this Court issued Rule calling upon the assessee to show cause why the Income Tax Appellate Tribunal "D" Bench, Kolkata should not be directed to draw up a statement of case and to refer the case to this Court for determination of the question of law indicated therein as follows:-

(2.) ) Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that there can be a private limited company with an object of philanthropic and charitable purposes as envisaged in section 10(22A) of the Income Tax Act, 1961?" 2. The Rule was made absolute on 16th March, 2000. Therefore, the questions indicated above have to be answered.

(3.) Mr. Agarwal, learned advocate for the revenue, contended that the Tribunal did not take into consideration the fact that the medical facility allegedly advanced by the assessee were aimed at helping the employees of the sister concerns. There was no philanthropic activity nor did assessee exist solely for philanthropic purposes. Therefore, the benefit under Sec. 10(22A) could not have been advanced to them.