Back
IN THE HIGH COURT OF DELHI
Manmohan, Manmeet Pritam Singh Arora, JJ.
Commissioner for Income Tax - Appellant
Versus
India Evangelical Team - Respondent
ITA 185 of 2022 & CM Appl. 29698 of 2022
Decided On : 08-07-2022
| Table of Content |
|---|
| 1. challenge to itat's exemption ruling. (Para 1) |
| 2. argument against exemption under section 11. (Para 2) |
| 3. previous court dismissals affect current appeal. (Para 3) |
| 4. appeal dismissed, no substantial question arises. (Para 4) |
JUDGMENT
Manmohan, J. (Oral)--Present appeal has been filed under Section 260A of the Income Tax Act, 1961 (`the Act') challenging the order dated 24th May, 2019 passed by the Income Tax Appellate Tribunal (`ITAT') in ITA No.4763/Del/2016 for the Assessment Year 2012-13.
2. Learned counsel for the appellant submits that ITAT has erred in allowing the benefit of exemption under Section 11 of the Act which was denied by the Assessing Officer because the Assessee society is set up for religious activities while claiming charitable status. He states that ITAT dismissed the appeal of the Revenue by relying on ITAT's own decision rendered in assessee's case bearing ITA No.5251/Del/2014 for the assessment year 2011-12. In the present appeal, it has been averred that the appeal against ITAT's decision for the assessment year 2011-12 is pending before this Court bearing ITA No.822/2018.
3. However, this Court vide order dated 25th April, 2022 has dismissed ITA No.822/2018 preferred by the Revenue by holding as under:
"Learned counsel for the appellant prays further time to comply with the order dated 3rd August, 2018.
However, this Court is of the view that the appellant has had more than sufficient time to comply with the order dated 3rd August, 2018.
Learned counsel for the respondent states that the issue raised in the present appeal had also arisen in the Assessment Years 2005-06, 2007-08 and 2008-09. He states that no appeal had been filed against the Tribunal judgment with regard to the aforesaid assessment years - which were in favour of the respondent-assessee. He also points out that an appeal being ITA 39/2017 filed by the Department for the Assessment Year 2010-2011 was dismissed by the learned predecessor Division Bench vide order dated 1st March, 2017. The said order is reproduced herein below:"
"ORDER
01.03.2017
The ITAT in this appeal by the Revenue under Section 260A of the Income Tax Act, 1961 endorsed the opinion of the CIT(A) that the assessee was entitled to claim charitable status under Section 11 of the Act. In so holding it relied upon its preview views for AY 2009-10. The ITAT also noted that the question of law urged by the Revenue in that previous year was a subject matter of an appeal that was rejected by this Court. In ITA No. 169/2003, pertaining to AY 199495, whereto the issue related to the benefit of Section 11 claimed by the assessee, the Court had observed as follows:
".....2. The appeal filed by the Revenue being ITA No. 6/2002 against the said order of the ITAT for AY 1992-93 has already been dismissed by this Court on 7th April 2011. The Revenue's appeal ITA 215 of 2002 for AY 1993-94, involving the same question, was dismissed on 24th September 2014.
3. In that view of the matter, this appeal is dismissed. The question is answered against the Revenue and in favour of the Assessee....".
In the light of the previous orders - mentioned above, no substantial question of law arises. The appeal is, therefore, dismissed."
4. In the light of the previous orders, no substantial question of law arises for consideration in the present appeal. Accordingly, the present appeal along with pending application is dismissed.
The court affirmed that the ITAT's decision on the exemption under Section 11 should stand, emphasizing that previously unresolved issues do not constitute substantial questions of law for appeal.
Activities deemed charitable under Income Tax Act, with established jurisprudence supporting exempt status despite commercial nature.
Charging management fees to defray administrative costs does not change the charitable nature of an activity under the Income Tax Act.
The court upheld earlier judgments regarding tax exemption eligibility despite pending appeals, confirming adherence to precedent until legally stayed.
A charitable institution can operate profitably without losing its status if profits are reinvested for charitable purposes, consistent with Income Tax Act provisions.
The Court upheld the ITAT's extension of tax exemption to the society, emphasizing that commercial engagement does not automatically negate charitable status, as long as core objectives remain unchan....
The Tribunal correctly granted exemption under the Income Tax Act, 1961, based on the principle of consistency, affirming the Trust's activities as charitable.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
