THE COMMISSIONER OF INCOME TAX-EXEMPTION vs. KATHA

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ITA/482/2017HC DelhiDLHC01235966201702 August 2017Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court found that the ITAT and CIT(A) had made concurrent factual findings that the Assessee's primary activity remained charitable, despite income from book sales. The Court found no perversity in these findings.

What were the facts?

The Revenue appealed against an ITAT order that upheld the Assessee's claim for exemption under Section 11. The Revenue argued that income from book sales brought the Assessee within the proviso of Section 2(15), disqualifying it from charitable status.

What were the issues?

Whether income from the sale of books disqualifies an entity from claiming exemption under Section 11, given the proviso to Section 2(15). Whether concurrent factual findings by lower authorities warrant interference by the High Court.

Which sections of the Income-tax Act were involved?

Section 11,Section 2(15),Section 260A

AI-generated summary — verify with the full judgment below

$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA No. 482/2017

COMMISSIONER OF INCOME TAX – EXEMPTION

..... Appellant

Through: Mr. Ruchir Bhatia, Advocate.

versus

KATHA

..... Respondent

Through: None.

CORAM: JUSTICE S. MURALIDHAR JUSTICE PRATHIBA M. SINGH

O R D E R %

02.08.2017 C.M. No. 22532/2017 (delay in filing) 1. For the reasons stated in the application, delay in filing the appeal is condoned. The application is disposed of. ITA No. 482/2017 2. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (‘Act’) is directed against an order dated 28th November, 2016 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.4244/Del/2016 for the Assessment Year (AY) 2010-11.

3.

The question sought to be urged by the Revenue in this appeal is whether the ITAT erred in upholding the order of the Commissioner of Income Tax (Appeals) [‘CIT (A)’] whereby the Assessee was allowed the benefit of exemption under Section 11 of the Income Tax Act, 1961? ITA No. 482/2017

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4.

According to the Revenue, the case of the Assessee is covered by the proviso inserted in Section 2(15) of the Act with effect from 1st April, 2009 and that since the Assessee has earned income from the sale of books, to the tune of Rs.38,43,805, it should be held to be not carrying out an activity for the charitable purposes.

5.

On the above aspect, both the CIT (A) as well as the ITAT have returned concurrent factual findings to the effect that notwithstanding the amount earned through publication or sale of books as noted above, the essential activity of the Assessee remained charitable in nature, viz., imparting education and relief to poor. The Court is not persuaded to hold that the above concurrent factual findings suffer from any perversity requiring interference by this Court.

6.

No substantial question of law arises for consideration. The appeal is dismissed with no order as to costs.

S. MURALIDHAR, J.

PRATHIBA M. SINGH, J. AUGUST 02, 2017 ‘anb’

ITA No. 482/2017

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