Summary
- The Bombay High Court has ruled that charging patients does not automatically strip a hospital of its philanthropic character.
- The Bench emphasized that while surplus is relevant, it is not conclusive in determining profit motives; factors like depreciation and capital expenditure must also be evaluated.
- This ruling quashed rejection orders for Assessment Years 2002-03 to 2021-22, impacting several hospitals' tax assessments.
- The decision could reshape how hospitals are classified under philanthropic status and influence future tax evaluations.
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