Interpretation of the term “other institutions” appearing in Section 10(22) of the Income Tax Act.

This judgement concerns the interpretation of "other institutions" under Section 10(22) of the Income Tax Act. The Sushila Birla Memorial Institute (SBMI), a registered charitable trust, runs a school for retarded children and provides medical aid through mobile vans in rural areas. The appeals address whether SBMI qualifies for tax exemption based on its activities and collaborations with other charitable organisations.

IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA ‘B’ BENCH, KOLKATA
(Virtual Court)

(Before Sri J. Sudhakar Reddy, Accountant Member & Sri Aby T. Varkey, Judicial Member)

I.T.A. No. 2079/Kol/2019
Assessment Year: 2013-14

Sushila Birla Memorial Institute..........Appellant
[PAN: AABTS 5863 L]

Vs.

ITO (Exemption), Ward-1(3), Kolkata........Respondent
I.T.A. No. 2080/Kol/2019

Assessment Year: 2014-15
Sushila Birla Memorial Institute.......Appellant
[PAN: AABTS 5863 L]

Vs.

DCIT, Circle-2, Kolkata.....................Respondent

Appearances by:

Sh. Ajay Kumar Gupta, A/R, appeared on behalf of the Assessee.

Smt. Ranu Biswas, Addl. CIT, appeared on behalf of the Revenue.

Date of concluding the hearing : January 28th, 2021
Date of pronouncing the order : February 19th, 2021

ORDER

Per J. Sudhakar Reddy, AM:

Both these appeals filed by the assessee are directed against separate but identical orders of the Learned Commissioner of Income Tax (Appeals)-25, Kolkata [hereinafter the “CIT(A)”], passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dated 06.08.2019 for the Assessment Years 2013-14 & 2014-15. As the issues arising in boththese appeals are common, for the sake of convenience, they are heard together and disposed off by way of this common order.

2. The assessee Sushila Birla Memorial Institute (hereinafter “SBMI”) is a Trust, registered u/s 12A of the Act from 31.10.1988. It is running a speciality school for retarded children as well as providing medical aid and treatment for persons who are suffering from illness or mental defectiveness. 

2.1. The SBMI owns a number of mobile medical vans. These medical vans are run in collaboration with M/s. Bharat Sevashram Sangha, M/s. Vivekananda Swasthya Seva Sangha etc. which are charitable organizations. The mobile medical vans are well staffed with doctors, nurses, attendants etc and also are equipped with surgical equipments, xrays, diagnostic equipments and medicines. The entire expenditure incurred on these mobile medical vans are paid by the assessee i.e. SBMI. These mobile medical vans provide medical services in remote and rural areas, where no medical facilities are available. The total annual receipt of the assessee is less than ₹1 crore. 

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