The main legal point established is that the absence of profit motive and the utilization of income for charitable activities are key factors in determining the charitable nature of an institution's activities under the Income Tax Act.

JUDGMENT

Manmohan, J. - Present appeals have been filed challenging the order dated 1st, November, 2019 passed by Delhi Bench 'a' of Income Tax appellate Tribunal in ITa No.3658/Del/2018, ITa No.3081/Del/2017, ITa No. 3082/Del/2017, ITa No.3659/Del/2018 for assessment Years (aY) 2010-11, 2012-13, 2013-14, 2014-15, whereby the appeals filed by appellant were dismissed. The relevant portion of the impugned order is reproduced hereinbelow:-

'5. We have heard both the parties and perused the records especially the impugned order, Paper Book filed by the assessee and the case laws relied therein as well as the relevant provisions of the act on the issue in dispute. We find considerable cogency in the contention of the Ld. Counsel for the assessee that the assesse is a charitable institution and mere receipt of fees and income etc. cannot be said that the assessee is involved in any trade, commerce or business. The assessee is carrying the mandate of the Will of Late Shri Gopa Bandhu Dass in running the printing press and the newspaper and the income so generated is used for charitable purposes and apparently there is no profit motive in the activities of the assessee and as such it cannot be said that the assessee is involved in any trade, commerce or business and as such the mischief of the Proviso of section 2(15) is not apparently attracted. We further note that the Hon'ble Delhi High Court in the case of India Trade Promotion Organization vs. DGIT9E) 53 Taxmann.com, 404 (Delhi) 2015 order dated 22.1.2015 has upheld the constitution validity of the proviso of section 2(15) which was under challenge being discriminatory in view of the article 14 (Equality before law) of the Constitution of India but the Hon'ble High Court has read down the strict and literal interpretation of the Proviso to Section 2(15) and has held that mere receipt of fee or charge cannot be said that the assessee is involved in any trade, commerce or business and has accordingly allowed the relief to the aforesaid case. after considering all the facts and circumstances of the case, we are of the considered view that the assessee is a charitable and non-profit institution and also found that assessee is not involved in any trade, commerce or business activity which attracts the mischief of the Proviso of section 2(15) of the act and the assessee has been enjoying the exemption u/s. 11(1) and also u/s. 10(23C)(iv) in the past and accordingly following the principle of consistency the aO was rightly directed to allow the exemption to the assessee u/s. 11( 1 )of act with all the consequential benefits by the Ld. CIT(a). Hence, we do not find any infirmity in the order of the Ld. CIT(a), therefore, we uphold the same and reject the grounds raised by the Revenue and accordingly, dismiss the appeal filed by the Revenue.

2. In the present appeals, the Principal Commissioner of Income Tax (Exemptions) Delhi has proposed the following questions of law:-

'(1) Whether Hon'ble Income Tax appellate Tribunal was correct in the eyes of the law in allowing benefit of exemption u/s 11 of the Income Tax act, 1961 in the facts and circumstances of the present case?

(2) Whether Hon'ble income Tax appellate Tribunal was justified in the eyes of law in treating the assessee as a charitable institution, even when the activities of the assessed fall under the last limb of Section 2(15) of the Income Tax act, 1961, i.e. advancement of any other object of general public utility and the same is hit by the amended proviso to the said section?

(3) Whether Hon'ble Income Tax appellate Tribunal was justified in the eyes of law in passing the impugned order overlooking the fact that the activities carried out by the assessee yielded income/profit to the society and are commercial in nature?

(4) Whether Hon'ble Income Tax appellate Tribunal was justified in the eyes of law in holding the income earned by commercial activity is charitable because of the application of the said income for the ch