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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI ANADEE NATH MISSHRA
This appeal is preferred by the department against order dated 06.05.2016 passed by the Ld. CIT (Appeals)-36, New Delhi for assessment year 2011-12. 2. Following grounds of appeal have been raised in this appeal :
1. On the facts and circumstances of the case and in law, Ld. CIT(A) has erred in law in holding that the activities of the assessee are charitable in nature and that assessee is eligible for exemption u/s 11 of I.T. Act by ignoring the fact that activities of the assessee is to organize meetings, seminars, workshops, conferences, brainstorming exhibitions in India and abroad and keep up with the latest development in the field of oil, lubricants and fuel gas world over and charging fees from delegates. The assessee's activities falls under the last limb of section 2(15] of the I.T. Act and hit by the proviso to section 2(15). 2. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing.
2. The issue in the present appeal is regarding assessee’s eligibility for exemption u/s 11 of I.T.Act. In the course of appellate proceedings in Income Tax Appellate Tribunal, the copies of the following orders were filed from the assessee’s side (a) assessment order dated 23.12.2011 in the case of M/s. Petrotech for assessment year 2009-10 passed by the Assistant Director of Income Tax (E) (b) Order dated 15.10.2012 of Commissioner of Income Tax (Appeals) for assessment year 2009-10 in the case of M/s Petrotech (c) order dated 11.04.2017 of Co-ordinate Bench of ITAT Delhi in the case of DDIT(E) vs. Petrotech in for assessment year 2009-10 (d) order dated 20.12.2017of Hon’ble High Court of Delhi in the case of CIT(E) vs. Petrotech in ITA No. 1172/2017, (e) assessment order dated 29.03.2014 in the case of Petrotech for assessment year 2011-12 (f) consolidated appellate order dated 06.05.2016 of Commissioner of Income Tax (Appeals) in the case of M/s. Petrotech for assessment years 2010-11 and 2011-12.
3. At the outset, the Ld. Counsel for the assessee informed us that all the aforesaid orders have been passed in the case of the assessee. He further submitted that the issue in dispute in the present appeal, regarding eligibility for exemption u/s 11 of Income Tax Act is covered in favour of the assessee vide aforesaid order dated 11.04.2017 of Co- ordinate Bench of ITAT Delhi passed in assessee’s own case. He further submitted that the issue is also covered in favour of the assessee by aforesaid order dated 20.12.2017 of Hon’ble High Court of Delhi. He drew our attention to the relevant portions of the aforesaid orders dated 11.04.2017 and 20.12.2017. the Ld. Counsel for the assessee also submitted that facts and circumstances being identical for assessment year 2011-12 to which the present appeal relates, the issue in dispute should be decided in favour of the assessee in the present appeal also. The Ld. CIT-DR appearing for Revenue agreed with the submissions of the Ld. Counsel for the assessee that the issue in dispute regarding assessee’s eligibility for exemption u/s 11 of I.T. Act is squarely covered in favour of the assessee by the aforesaid orders dated 11.04.2017 and 20.12.2017 of ITAT and Hon’ble High Court respectively. She further agreed that facts and circumstances relevant to the present appeal are identical to facts and circumstances pertaining to the aforesaid orders dated 11.04.2017 and 20.12.2017.
We have heard both the sides and also perused the material from record. For ease of reference, the relevant portions of the aforesaid orders dated 11.04.2017, 20.12.2017 are reproduced below :- A.Y. 2009-10 Order dated 11.04.2017 7. We have carefully perused the memorandum of Association and by laws of the society, which are placed before us, and page No. 30 of the paper book. According to that, the assessee is required to provide a forum for national and international experts in oil and gas industry exchange view and share their knowledge expert eyes and experience. Further, it is also formed to identify new areas for cooperation and technology transfer relating to petroleum industry and to find out new ways to assimilate and harness the petroleum resources of the world for the benefit of mankind. Therefore on looking at the clause No. 3 of the memorandum oh Association of the assessee it is apparent that assessee is formed to carry on the educational activities in the field of oil and gas industry. The annual accounts placed before us at page no. 22 on 23 of the paper book shows that the assessee has excess of income of Rs. 8351077 for the year ended on 31st of March 2009 and 5188749/- for March 2008. On a query being raised by the bench that whether the assessee is still enjoying the registration under section 12 A of the income tax act or not, it was replied by both the parties that still assessee is registered under section 12 A of the income tax act. Merely because the assessee is holding conferences and seminars which are according to us in furtherance of the object of education only against payment of . fees will not make the object of the trust falling into the 6th category i.e. ‘ Any other object of general public utility’. Further more it is not the case of the revenue that assessee is not carrying on the objective for which it has been formed and the fees and the income earned by the assessee is not used for charitable, purposes. The Ld. departmental representative could not controvert the decisions relied upon by the Ld. AR. The revenue also could not place before us any evidence to show that the objects of the assessee are not ‘education’. In view ofLthis we do not find any infirmity in the order of the. Ld. CIT ( in holding that assessee is entitled for deduction or exemption under section 11 and 12 of the income tax act as assjssee is carrying on the activity of education only and income generated, there from is also used for the charitable objects of education only. ITA No. 1172/2017 Order dated 20.12.2017
The assessee is a trust registered under Section 12A of the Act by an order dated 02,08,2000. It also secured registration under Section 80G of the Act for AY 2009-10. The Assessing Officer (AO) after noticing its objects felt that whilst the principal activity was imparting education, nevertheless, the nature of the receipts received by it was of commercial consideration. He, therefore, brought to tax the amount received. The assessee appealed* to the Appellate Commissioner to accept its plea after noticing several decisions including that of this Court in DIT vs. Ind u ab ita t Centre (2011) 203 Taxman 510. The ITAT’s decision has relied on several judgments of this Court including Irdu Trade Promotion O rga nisationvs.D inectorU e m.ral oflrvane Ta x 371 ITR 333; PH D C hambers ofC cmmerce 1 Industry vs. D IT\ 357 ITR 296, etc.
Having regard to the concurrent findings of fact and ruling in Irdu nTrade Prom otionO rga nisathnvs.D Pectord e renal of Incane Tax 371 ITR 333, this Court is of the opinion that there is no ’infirmity ; or error of law in the impugned order calling for interference. No substantial question of law arises.
Both sides have agreed before us that the issue in dispute in the present appeal regarding assessee’s eligibility for exemption u/s 11 of Income Tax Act is covered in favour of the assessee by the aforesaid orders dated 11.04.2017, 20.12.2017. Both sides have also agreed that facts and circumstances for the present assessment year 2011-12 are identical to the facts and circumstances pertaining to the aforesaid orders dated 11.04.2017, 20.12.2017. Neither side has brought any materials for our consideration to persuade us to take a view different from the view already taken in the aforesaid orders dated 11.04.2017, 20.12.2017. Therefore, we decline to interfere with the aforesaid impugned appellate order dated 06.05.2016 of the ld. CIT(A).
For the statistical purposes, the appeal is dismissed. Order pronounced in the open court on 20.12.2019.