INCOME TAX OFFICER, NEW DELHI vs. INDIAN NATIONAL THEATRE TRUST, NEW DELHI

At the very outset, the ld. counsel for the assessee vehemently submitted that the issue of claim of exemption u/s 11 & 12 of the Income-tax Act, 1961 [the Act, for short] against the income from hiring out of auditorium and providing space for rent in lieu of fee were commercial in nature is answered in favour of the assessee and against the Revenue by decision of the ITAT and the Hon'ble Delhi High Court in the case of assessee itself. [A.Y 2017-18] 5. We have heard the rival submissions and have perused the relevant material on record. We find force in the contention of the ld. counsel for the assessee that the issue involved in this case is squarely covered in favour of the assessee and against the Revenue. We find that the co- ordinate bench in assessee’s own case for A.Ys 1986-87 to 1988-89 has allowed the appeal of the assessee on identical issue vide order in ITA 7892-7893/D/91 and ITA 1589/D/92 dated 22.04.1999. Further, the Hon'ble Delhi High Court has also upheld the order of the ITAT and dismissed the appeal filed by the Revenue in the case of assessee in ITA 620/2012 order dated 19.11.2012 and ITA No. 499 of 2012 order dated 05.09.2012. 6. Respectfully following the order of the juri ictional High Court of Delhi [supra] and the co-ordinate bench of the ITAT [supra], we dismiss the grounds of appeal raised by the Revenue. 7. In the result, appeal of the Revenue in ITA No. 4881/DEL/2025 is dismissed. [A.Y 2017-18] Order pronounced in open court on 29.12.2026. [ANUBHAV SHARMA]