THE COMMISSIONER OF INCOME TAX - EXEMPTION vs. INDIA HIV/AIDS ALLIANCE

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ITA/1020/2019HC DelhiDLHC01050213201924 December 2019Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises from the ITAT's order. The ITAT had found that the respondent-assessee was covered by Section 2(15) of the Income Tax Act, 1961, and not its proviso. The High Court noted that the findings of the ITAT were purely factual. The reasoning for the High Court's decision is based on the precedent set by its own rejection of a similar appeal (ITA 651/2019) arising from the same common order, where it observed that no substantial questions of law were involved. Therefore, the appeal was disposed of on this ground.

What were the facts?

The Commissioner of Income Tax - Exemption (Revenue) filed an appeal against an order dated January 23, 2019, passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench “C”. The ITAT had allowed the appeal of the respondent-assessee, India HIV/AIDS Alliance, holding that the assessee was covered by Section 2(15) of the Income Tax Act, 1961, and not its proviso. The ITAT's order also dealt with assessment year 2010-11. The Revenue had previously filed another appeal (ITA 651/2019) from the same common order, which was rejected by the High Court on July 23, 2019, for not raising substantial questions of law. The present appeal also pertains to the same common order.

What were the issues?

1. Whether the respondent-assessee, India HIV/AIDS Alliance, is covered by the main limb of Section 2(15) of the Income Tax Act, 1961, or its proviso. The Tribunal decided this issue in favour of the assessee. The Revenue contended that the assessee's activities fall under the proviso to Section 2(15), implying it is not eligible for certain exemptions. The Assessee argued that its activities are charitable and fall within the general definition of 'charitable purpose' under Section 2(15), not the restrictive proviso. The judgment does not explicitly record the specific arguments of the Revenue or the Assessee beyond the core issue.

Which sections of the Income-tax Act were involved?

Section 2(15)

AI-generated summary — verify with the full judgment below

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1020/2019 THE COMMISSIONER OF INCOME TAX - EXEMPTION ..... Appellant Through: Mr.Shlok Chandra and Ms.Madhura M.N, Advocates versus INDIA HIV/AIDS ALLIANCE ..... Respondent Through: None CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE SANJEEV NARULA O R D E R % 24.12.2019 C.M. No. 55192/2019 (delay in re-filing) 1. By this application the applicant seeks condonation of delay of 138 days in re-filing the application. For the reasons stated in the application, the delay is condoned. 2. The application stands disposed of in the aforesaid terms. ITA 1020/2019 3. The present appeal is directed against the order dated 23rd January, 2019 passed by the Income Tax Appellate Tribunal Delhi Bench “C”, New Delhi in ITA No. 7210/Del/2017, whereby the appeal preferred by the respondent- assessee was allowed by the Tribunal and the Tribunal held that the respondent was covered by Section 2(15), and not to proviso thereof, of the Income Tax Act.

4.

The findings returned by the Tribunal are completely factual. By the impugned order the Tribunal had also decided ITA No. 716/Del/2017, which related to the assessment year 2010-11. The appeal preferred by the revenue in ITA 651/2019 from the same common order has been rejected by this Court on 23rd July, 2019, while observing that no substantial questions of law arises for consideration. 5. No substantial question of law arises in present appeal. Accordingly, the appeal is disposed of. VIPIN SANGHI, J SANJEEV NARULA, J DECEMBER 24, 2019 v

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