THE COMMISSIONER OF INCOME TAX -EXEMPTION vs. DELHI BUREAU OF TEXT BOOKS

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ITA/1011/2018HC DelhiDLHC01008779201814 September 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court rejected the Revenue's contention that the Delhi Bureau of Textbooks was engaged in business and commercial activities and not charitable activities. The Court relied on its previous decisions in similar matters concerning the same assessee and other organizations. Specifically, the Court referred to its judgment in Delhi Bureau of Text Books v. Director of Income Tax (Exemption), (2017) 394 ITR 387 (Del), where an earlier appeal by the Revenue in the case of the respondent/assessee was dismissed. The Court also cited other relevant precedents: The Institute of Chartered Accountants of India & Anr. vs. The Director General of Income Tax (Exemption), Delhi & Ors., (2012) 347 ITR 99 (Del) and M/s GS1 India vs. Director General of Income Tax (Exemption) & Anr., (2014) 360 ITR 138 (Del) and India Trade Promotion Organization v. Director General of Income Tax (Exemption) & Ors., (2015) 371 ITR 333 (Del). Given this established position, the Court found no substantial question of law arising for consideration. Consequently, the application for condonation of delay and the appeal were treated as dismissed.

What were the facts?

The Revenue appealed against an order concerning the Delhi Bureau of Textbooks, a society jointly established by the Government of India and the Government of NCT of Delhi. The society's objective is to ensure the timely supply of textbooks at fair prices and to improve the quality of education. The Revenue contended that the society was engaged in business and commercial activities, rather than charitable activities. The High Court noted that a previous appeal by the Revenue in the case of the same assessee had been dismissed by this Court. The Revenue filed the present appeal with a delay of 213 days in re-filing.

What were the issues?

1. Whether the Delhi Bureau of Textbooks, a society established by government entities for textbook supply and educational improvement, is engaged in charitable activities or business and commercial activities, thereby affecting its tax-exempt status. This question turns on the interpretation of provisions related to charitable purposes under the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. Revenue's Contention: The Revenue argued that the Delhi Bureau of Textbooks is conducting business and commercial activities, and therefore, is not engaged in charitable activity. The Revenue relied on the principle that if an entity engages in business, it cannot be considered charitable.

AI-generated summary — verify with the full judgment below

$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1011/2018 & CM Appl. 37729/2018

THE COMMISSIONER OF INCOME TAX -EXEMPTION

..... Appellant

Through: Mr.Ruchir Bhatia, Adv.

versus

DELHI BUREAU OF TEXT BOOKS ..... Respondent

Through

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

14.09.2018

Revenue in the present appeal submits and argues that Delhi Bureau of Textbooks, a society jointly set up by the Government of India, Ministry of Education, and Government of NCT of Delhi, to ensure timely supply of prescribed textbooks at fair prices to school students and to improve quality of primary and secondary school education, is not engaged in charitable activity. It is submitted that the Society is conducting business, and commercial activities. This contention has to be rejected in view of decisions of this Court in Delhi Bureau of Text Books v. Director of Income Tax (Exemption),(2017),394 ITR 387 (Del), The Institute of Chartered Accountants of India & Anr. vs. The Director General of Income Tax (Exemption), Delhi & Ors., (2012) 347 ITR 99 (Del), M/s GS1 India vs. Director General of Income Tax (Exemption) & Anr.,(2014) 360 ITR 138

(Del) and India Trade Promotion Organization v. Director General of Income Tax (Exemption) & Ors., (2015) 371 ITR 333 (Del). By the first decision, earlier appeal preferred by the Revenue in the case of respondent/assessee has been dismissed.

In view of the aforesaid position, we do not feel any substantial question of law arises and is required to be framed. Accordingly, we are not issuing notice in the application for condonation of delay of 213 days in re- filing the appeal. This application and the appeal would be treated as dismissed.

SANJIV KHANNA, J

CHANDER SHEKHAR, J SEPTEMBER 14, 2018 rk

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