JAN KALYAN SAMITI,GHAZIABAD vs. ITO WARD EXEMPTION, GHAZIABAD

ITA 5120/DEL/2025Status: DisposedITAT Delhi06 February 2026AY 2015-16Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the Assessing Officer erred in invoking Section 13(2)(e) as the conditions for substantial interest were not met. The Tribunal found that the Assessing Officer combined provisions of Section 13(2)(e) and 2(22)(e) and relied on assumptions and conjectures.

What were the facts?

The assessee society purchased shares from M/s Rinkpi Finance & Consultants Pvt. Limited (RFCPL). The Assessing Officer alleged that the President and another member of the assessee society had substantial interest in RFCPL, leading to the disallowance of exemption under Section 13(2)(e) of the Income Tax Act. The assessee argued that the shareholding thresholds for substantial interest were not met.

What were the issues?

Whether the provisions of Section 13(2)(e) of the Income Tax Act were correctly invoked by the Assessing Officer based on the shareholding of the society's office bearers in the company from which shares were purchased.

Which sections of the Income-tax Act were involved?

Section 13(2)(e),Section 13(3),Section 11,Section 12,Section 2(22)(e)

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Income Tax Appellate Tribunal, DELHI BENCHES ‘E’: NEW DELHI.

Before: SHRI S. RIFAUR RAHMAN & SHRI RAJ KUMAR CHAUHAN

For Appellant: Adv &
For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 11.12.2025

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)/ National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to ‘ld. CIT (E)’) dated 17.07.2025 for Assessment Year 2015-16. 2. Brief facts of the case are, assessee filed return of income declaring NIL income on 28.09.2015. The case was selected for scrutiny under CASS,

2 notices u/s 143(2) and 142(1) were issued and served on the assessee. In response AR of the assessee attended and submitted the relevant information as called for.

3.

During assessment proceedings, the Assessing Officer observed that assessee society was granted registration u/s 12AA of the Income Tax Act 1961 (in short “Act”), by

The order continues below.

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