Those selling products at market rate can't claim charitable status: ITAT

Hospital's appeal against income tax department rejected; it is a private company that turned into a non-profit

Those charging market rates for their products cannot be treated as charitable entities, according to a recent ruling by the income tax appellate tribunal (ITAT).

Hyderabad ITAT dismissed an appeal by Fernandez Hospital to declare as void an order by the commissioner of income tax (exemptions), or CIT (E), to reject its status as a non-profitable company.

The assessee was a private limited company till August 2, 2018 and the next day it converted into a non-profitable company under Section 8 of the Companies Act.

Fernandez Hospital said CIT (E) was carried away by its accounts before its conversion into