ITO(E), NEW DELHI vs. SOCIETY FOR AUTOMOTIVE FITNESS & ENVIRONMENT, NEW DELHI

PDF · subscribers
ITA 6557/DEL/2015Status: DisposedITAT Delhi25 January 2017AY 2011-123 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, finding that the assessee was not involved in trade, commerce, or business. Therefore, the proviso to Section 2(15) was not applicable, and the exemption under Section 11(1) was rightly allowed.

What were the facts?

The revenue appealed against the CIT(A)'s order allowing exemption under Sections 11 and 12 of the Income Tax Act. The revenue argued that the assessee's activities involved commerce or business, making the proviso to Section 2(15) applicable.

What were the issues?

Whether the assessee's activities fall under the proviso to Section 2(15) of the Income Tax Act, thereby disentitling it from exemption under Sections 11 and 12.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC 3’, NEW DELHI

Before: BEFORE SHRI J. SUDHAKAR REDDY

Appellant by : Sh. Rajesh Kumar, Sr.D.R Respondent by : Sh. Gaurav Jain, Adv. Ms. Bhavita Kumar, Adv. ORDER This is an appeal filed by the revenue directed against the order of the Commissioner of Income Tax (Appeals)-40, New Delhi dated 23/04/2014 for the assessment year 2011 – 12 on the following grounds: “ on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the benefit of section 11 and 12 of the Income Tax Act, 1961 (the Act) ignoring the fact that the assessee’s activities involve rendering of service in relation to carrying on of a commerce or business and hence, proviso to section 2 ( 15) of the I T act, is clearly applicable in case of the assessee.”

2. After hearing rival contentions I find that the Ld. 1st appellate authority has at paragraph 3.7 given a finding that the assessee is not involved in any trade, commerce or business and as such, the mischief of proviso to section 2(15) is not applicable. He allowed exemption under section 11( 1) of the act.

While doing so he applied the judgement of the jurisdictional High Court in the case of India trade promotion Organisation VS. DG IT(E), 53 taxman.com (Delhi) 2015.

3.

I also find that the issue is covered by the order of the ITAT Delhi benches in order dated 06/06/2016 in the case of “Society of Indian auto Mobile Manufacturers Association” for assessment year 2009-10. The Ld. departmental representative could not controvert the submissions of the Ld. counsel for the assessee.

4.

In view of the above discussion, I respectfully follow the decision of the jurisdictional High Court as well as the ITAT Delhi benches referred above and uphold the order of the 1st appellate authority and dismiss this appeal of the revenue 5. In the result the appeal of the revenue is dismissed. Order pronounced in the open court on 25th January, 2017.

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →