ITA Nos.1302 to 1304/Chny/2023

Parties Involved

Facts Summary

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, Delhi, regarding the assessment years 2014-15 to 2016-17. The assessee, M/s.D.N. Public Charitable Trust, was found to have a CT Scanner machine installed in the premises of a company, M/s. Dhevaki Diagnostics Pvt. Ltd., without charging adequate rent or compensation. The Revenue argued that this constituted a violation of section 13(1)(c) of the Income Tax Act, 1961, and that the assessee was not eligible for exemption under sections 11 and 12 of the Act. The assessee, however, contended that all fees collected by M/s. Dhevaki Diagnostics Pvt. Ltd. for using the CT Scanner were transferred to the assessee Trust. The Learned Commissioner of Income Tax (Appeals)/NFAC, Delhi, upheld the assessee's contention and deleted the addition made by the Assessing Officer.…

Legal Issues

• 1. Whether the assessee violated section 13(1)(c) of the Income Tax Act, 1961 by not charging adequate rent or compensation for the use of the CT Scanner.
• 2. Whether the assessee was eligible for exemption under sections 11 and 12 of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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