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Section 10(23C) exemption is not available to maternity hospital

Section 10(23C) benefit can't be granted to maternity hospital as child birth is a natural process of God which in no way could be said to be any illness as contemplated under section 10(23C)(iiiae)

• In the instant case the assessee was running a maternity hospital in which services were provided to patients on nominal charges. In the cross objections it made a claim for deduction under section 10(23C)(iiiae). Thus, the moot question that arosed before the ITAT was as under:

• Whether assessee was eligible to claim deduction under section 10(23C)(iiiae) and whether services provided by assessee in relation to maternity hospital could be termed as services provided for illness or disease as envisaged under section 10(23C)(iiiae)?

The Tribunal held as under:

(1) The child birth is the natural process of God and it certainly is the God's grace which is extended to sustain us through it. It is the act of God who designs a child conceived in the womb to be born into this world;

(2) In olden days deliveries of children were perfectly conducted by midwives at home, but in the modern age, it is only because the anxiety of people that they would not be able to manage the discomfort or pain during labour, they choose to take better facilities in the hospitals in presence of Doctors for this purpose;

(3) Thus, the assessee's maternity hospital had been facilitating the deliveries, i.e., a natural process of God, which in no way could be said to be any illness to be treated in the hospital as envisaged under section 10(23C)(iiiae);

(4) The CIT(A) rightly disallowed the claim of assessee as the ingredients of section 10(23C)(iiiae) were not fulfilled. Thus, the cross objections of the assessee had no merit and were accordingly, to be dismissed.

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