The Bombay High Court has ruled that charging patients does not, by itself, deprive a hospital of its philanthropic character or disqualify it from income-tax approval.
Breach Candy Hospital Trust challenged orders refusing approval under Section 10(23C)(via) of the Income-tax Act. In its 12 October 2026 judgment, the court found that the authority had imposed requirements not found in the statute and failed to assess the institution’s objects and application of income in the legally required manner.
The bench quashed both refusal orders. It directed the competent authority to grant approval for assessment years 2002-03 through 2010-11 and separately for 2011-12 through 2021-22, within eight weeks of the judgment’s upload. The petitions will be listed on 14 December 2026 to report compliance.