THE COMMISSIONER OF INCOME TAX -EXEMPTION vs. NEW DELHI YOUNG MEN'S CHRISTIAN ASSOICATION

PDF · subscribers
ITA/537/2018HC DelhiDLHC01113389201807 May 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no question of law arose for consideration. The Tribunal's decision to grant relief to the assessee was based on its reliance on the ruling in India Trade Promotion Organization v. DGIT (Exemptions) 371 ITR 333. The Court found that since the ITAT followed this precedent, its order was justified, and the Revenue's appeal lacked a substantial question of law. Therefore, the appeal was dismissed. No specific issue was left undecided.

What were the facts?

The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) which upheld the order of the Appellate Commissioner. The assessee, New Delhi Young Men's Christian Association, claimed the benefit of Sections 11 and 12 of the Income Tax Act, 1961, asserting its status as a charitable organization. The Assessing Officer (AO) had brought certain receipts to tax, considering them real income based on the nature of the activities for which payments were made. Both the CIT(A) and the ITAT disagreed with the AO's assessment, granting relief to the assessee.

What were the issues?

1. Whether the Tribunal erred in holding that the receipts were not taxable as real income, despite the nature of the activities for which payments were made, thereby allowing the benefit of Sections 11 and 12 of the Income Tax Act, 1961? Assessee's Contention: The assessee contended that it was a charitable organization and entitled to the benefits of Sections 11 and 12. The ITAT, in upholding the CIT(A)'s order, relied on several judgments, including India Trade Promotion Organization v. DGIT (Exemptions) 371 ITR 333, to conclude that the AO's view was incorrect. Revenue's Contention: The Revenue argued that the AO was correct in bringing the receipts to tax as real income, considering the nature of the activities. The Revenue is aggrieved by the ITAT's decision to grant relief to the assessee.

Which sections of the Income-tax Act were involved?

Section 11,Section 12

AI-generated summary — verify with the full judgment below

$~62 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 537/2018

THE COMMISSIONER OF INCOME TAX -EXEMPTION ..... Appellant Through: Mr. Puneet Rai with Mr. Ruchir Bhatia, Advs.

versus

NEW DELHI YOUNG MEN'S CHRISTIAN ASSOICATION ..... Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

07.05.2018

The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) which upheld the order of the Appellate Commissioner who granted relief to the assessee. The assessee claimed the benefit of Section 11 and 12 of the Income Tax Act, 1961 (hereafter referred to as „the Act‟) on the ground that it was a charitable organization. The Assessing Officer (AO) brought to tax receipts on the ground that they were real income having regard to the nature of activity for which the payments were made. The CIT(A) and the ITAT relied upon several judgments including the ruling in India Trade Promotion Organization v. DGIT (Exemptions) 371 ITR ITA 537/2018

Page 1 of 2

333 to hold that the AO‟s view was incorrect; accordingly relief was granted to the assessee.

This Court is of the opinion that having regard to the ruling in India Trade Promotion Organization (supra) which was followed by the ITAT, no question of law arises. The appeal is dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MAY 07, 2018 kks

ITA 537/2018

Page 2 of 2

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →