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Facts
The revenue challenged orders of the Income Tax Appellate Tribunal for Assessment Years 2012-13, 2014-15, and 2015-16. The core dispute was whether the respondent's income, despite its charitable objects, was commercial in nature, affecting its tax exemption status.
Held
The Delhi High Court condoned the delay in filing and re-filing the appeals. It held that the issue regarding the commercial nature of income for charitable entities had been settled by the Supreme Court's judgment in *Assistant Commissioner of Income Tax (Exemptions) v. Ahmadabad Urban Development Authority*. Consequently, the revenue's appeals were closed, and the Tribunal's orders were sustained.
Key Issues
The key legal issue was whether the income generated by an entity with charitable objects, through its activities, should be classified as commercial, impacting its eligibility for income tax exemption.
Sections Cited
Section 2(15)
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$~60, 61 & 63 * IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 538/2022 & CM Nos.54834-35/2022
COMMISSIONER OF INCOME TAX (EXEMPTIONS) DELHI
..... Appellant Through: Mr Abhishek Maratha, Sr. Standing Counsel.
versus
ERNET (INDIA)
..... Respondent Through: Mr Rohit Jain and Mr Aniket D. Agrawal, Advs.
+ ITA 539/2022 & CM Nos.54839-40/2022
COMMISSIONER OF INCOME TAX (EXEMPTIONS) DELHI
..... Appellant Through: Mr Abhishek Maratha, Sr. Standing Counsel.
versus
ERNET (INDIA)
..... Respondent Through: Mr Rohit Jain and Mr Aniket D. Agrawal, Advs.
+ ITA 541/2022 & CM No.54843/2022
COMMISSIONER OF INCOME TAX (EXEMPTIONS) DELHI
..... Appellant Through: Mr Abhishek Maratha, Sr. Standing Counsel.
versus
ITA 538/2022 & connected matters
page 1 of 3 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:32:51
ERNET (INDIA)
..... Respondent Through: Mr Rohit Jain and Mr Aniket D. Agrawal, Advs.
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MS. JUSTICE TARA VITASTA GANJU
O R D E R %
19.12.2022 [Physical Hearing/Hybrid Hearing (as per request)] CM Nos.54834-35/2022 in ITA 538/2022 CM Nos.54839-40/2022 in ITA 539/2022 CM No.54843/2022 in ITA 541/2022 [Applications filed on behalf of the appellant seeking condonation of delay in filing and re-filing the appeals] 1. These are the applications moved on behalf of the appellant/revenue seeking condonation of delay in filing and re-filing the appeals. 2. Mr Rohit Jain, who appears on behalf of the respondent/assessee, says that he does not oppose the prayers made in the above-captioned applications. 3. The delay in filing and re-filing the appeals is, accordingly, condoned. 4. The applications are disposed of in the aforesaid terms. ITA 538/2022 ITA 539/2022 ITA 541/2022
These appeals concern Assessment Years (AYs) 2014-15 [ITA No.538/2022]; 2015-16 [ITA No.539/2022] and 2012-13 [ITA No.541/2022].
ITA 538/2022 & connected matters
page 2 of 3 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:32:51
In ITA No.538/2022, a challenge is laid to the order dated 27.01.2022 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”], while in ITA No.539/2022, the order dated 08.07.2021 is assailed. Likewise, in ITA No.541/2022, the order dated 26.08.2020 passed by the Tribunal is assailed. 7. Broadly, the issue that arises for consideration in the above-captioned appeals is as to whether, the income of the respondent (which, otherwise, has objects which are charitable in nature), earned via its activities, is commercial in nature. 8. Counsel for the parties inform us that the issue has attained quietus by virtue of the judgment passed by the Supreme Court in Assistant Commissioner of Income Tax (Exemptions) v. Ahmadabad Urban Development Authority (2022) 449 ITR 1 (SC). 9. In these circumstances, the above-captioned appeals filed by the revenue are closed. 10. Consequently, the orders passed by the Tribunal are sustained.
RAJIV SHAKDHER, J
TARA VITASTA GANJU, J
DECEMBER 19, 2022
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ITA 538/2022 & connected matters
page 3 of 3 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 13:32:51