ADIT(E), NEW DELHI vs. M/S. INDIAN EVANGELICAL TEAM, NEW DELHI

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ITA 2153/DEL/2014Status: DisposedITAT Delhi29 June 2016AY 2010-113 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 held that the issue was covered by its own decision in the assessee's own case for the assessment year 2009-10. Since the facts were identical and the Revenue had not presented any contrary material or decisions, the Tribunal upheld the CIT(A)'s order.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing exemption under Section 11 of the Income Tax Act. The AO had denied this exemption, citing a violation of Section 13(1)(b) due to the assessee society engaging in religious activities while claiming charitable status.

What were the issues?

Whether the assessee society, engaged in religious activities, is eligible for exemption under Section 11 of the Income Tax Act, or if it violates Section 13(1)(b) by claiming charitable status.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND SMT. BEENA A. PILLAI SMT. BEENA A. PILLAISMT. BEENA A. PILLAI SMT. BEENA A. PILLAI

For Appellant: Shri T. Vasanthan, Senior DR
For Respondent: Shri George Koshi, CA
Hearing: 29.06.2016Pronounced: 29.06.2016

PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the Revenue for the assessment year 2010-11 is directed against the order of learned CIT(A)-XXI, New Delhi dated 27th January, 2014.

2.

The only ground raised in this appeal by the Revenue reads as under:-

1.

“On the facts and in circumstances of the case and in law, the ld.CIT(A) has erred in allowing the exemption u/s 11 of the I.T. Act, 1961 which was denied by AO because assessee society is set up for religious activities while claiming charitable status which is clear violation of section 13(1)(b) of the I.T. Act 1961.”

2 ITA-2153/Del/2014

3.

We have heard the arguments of both the sides and have perused the material placed before us. We find the issue to be covered in favour of the assessee by the decision of ITAT in assessee’s own case for assessment year 2009-10 vide dated 11th September, 2012. In the said order, the ITAT, considering various decisions of the ITAT in earlier years, has decided the appeal in favour of the assessee. The relevant finding of the ITAT reads as under:-

“5. We have heard both the parties and gone through the facts of the case. We find that the AO himself accepted the claim of the assessee for exemption u/s 11 of the Act in the AYs 1989-90 to 1991-92, 1995-96 to 2004-05 & 2006-07 in identical circumstances. In the AY 1992-93, though a similar claim for exemption was disallowed, the ld.CIT(A) allowed the claim and the ITAT upheld the findings of the ld.CIT(A). On further appeal, the question of law formulated by Hon’ble High Court is stated to be pending in ITA No.6/2002. In the AY 1993-94, AO rejected the claim and appeal is stated to be pending in ITA No.216/2002. For the AY 1994-95, the ITAT upheld the findings of the ld.CIT(A) allowing the claim for exemption u/s 11 of the Act and the appeal filed before the Hon’ble High Court is stated to be pending admission. In AY 2005- 06, the AO again denied exemption for violation u/s 13(1)(b) of the Act. However, on appeal, the ld.CIT(A) allowed the claim and the ITAT upheld the findings of the ld.CIT(A) vide their order dated 18th June, 2009 in ITA No.45/Del/09. In the AYs 2007-08 & 2008-09, though the AO denied exemption u/s 11 of the Act, the ld.CIT(A) allowed the claim of the assessee in the AY 2007-08 and the fate in further appeal is not known while in the AY 2008-09, the ITAT vide their order dated 26th December, 2011 in upheld the findings of ld.CIT(A), granting exemption u/s 11 of the Act. The ld.CIT(A) in the impugned order followed this order of the ITAT for the AY 2008-09 in allowing exemption u/s 11 of the Act. In view of the foregoing, especially when the Revenue have not placed any material before us, controverting the aforesaid findings of the ld.CIT(A) nor brought to our notice any contrary decision, so as to enable us to take a different view in the matter while claim of the assessee for exemption has consistently been allowed in the preceding

3 ITA-2153/Del/2014 years, we are not inclined to interfere. Consequently, ground no.1 in the appeal is dismissed.”

4.

Admittedly, the facts of the year under consideration are identical. Learned DR stated that in the earlier year, the Revenue is in appeal before Hon'ble Jurisdictional High Court and, therefore, the matter may be kept pending till the decision of Hon'ble Jurisdictional High Court. In our opinion, merely because the earlier year’s appeals are pending before the High Court would be no ground for keeping the appeals pending. We, therefore, respectfully following the decision of ITAT in assessee’s own case for assessment year 2009-10, uphold the order of learned CIT(A) and dismiss the Revenue’s appeal.

5.

In the result, the appeal of the Revenue is dismissed. Decision pronounced in the open Court on 29.06.2016.

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