THE COMMISSIONER OF INCOME TAX -EXEMPTION vs. NATIONAL ACCREDITATION BOARD FOR TESTING AND CALIBRATION LABORATORIES

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ITA/641/2018HC DelhiDLHC01133476201828 May 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arose from the appeal. The Court's decision was based on its previous order in ITA No. 284/2016, where it had already expressed the opinion that the assessee, National Accreditation Board for Testing and Calibration Laboratories, was not engaged in trade, commerce, or business. The Court found that the assessee's dominant and main objective was charitable in nature. Consequently, the appeal filed by the Commissioner of Income Tax (Exemption) was dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The Commissioner of Income Tax (Exemption) filed an appeal under Section 260-A of the Income Tax Act, 1961, challenging an order concerning the assessee, National Accreditation Board for Testing and Calibration Laboratories (NABL). The appeal pertained to the applicability of Section 2(15) and Section 12 of the Act. The High Court noted that this appeal was covered by its previous order in ITA No. 284/2016, also involving the same appellant and respondent, decided on May 2, 2016. In that prior decision, the Court had opined that the assessee was not engaged in trade, commerce, or business, and its primary objective was charitable.

What were the issues?

1. Whether the assessee, National Accreditation Board for Testing and Calibration Laboratories, is engaged in trade, commerce, or business, thereby disentitling it from the benefit of Section 2(15) of the Income Tax Act, 1961? Assessee's Contention: The judgment does not record any specific arguments made by the assessee. Revenue's Contention: The revenue contended that the assessee was engaged in trade, commerce, and business. 2. Whether the assessee is entitled to the benefit of Section 12 of the Income Tax Act, 1961? Assessee's Contention: The judgment does not record any specific arguments made by the assessee. Revenue's Contention: The revenue's challenge implicitly questions the assessee's eligibility for benefits under Section 12, linked to its charitable nature under Section 2(15).

Which sections of the Income-tax Act were involved?

Section 260-A,Section 2(15),Section 12

AI-generated summary — verify with the full judgment below

$~6 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 641/2018

THE COMMISSIONER OF INCOME TAX -EXEMPTION

..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus NATIONAL ACCREDITATION BOARD FOR TESTING AND CALIBRATION LABORATORIES

..... Respondent

Through:

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

O R D E R %

28.05.2018

The appellant’s appeal under Section 260-A of the Income Tax Act, 1961 (hereafter ‘the Act’) regarding the benefit of Section 2(15) of the Act and of Section 12 of the Act, is covered by the previous orders of this Court in ITA No.284/2016 (‘Commissioner of Income Tax (Exemption) Delhi vs. National Accreditation Board for Testing and Calibration Laboratories’, decided on 02.05.2016). The Court expressed the opinion that the assessee was not engaged in trade, commerce and business and its dominant and main objective is charitable in nature. No substantial question of law arises; the appeal is therefore dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MAY 28, 2018/nn

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