ITAT Delhi Judgments — January 2017

The Tribunal held that the assessee's activities were commercial in nature, with a profit motive, and not for charitable purposes as defined under Section 2(15) after its amendment. Therefore, it was not entitled to registration.

The Tribunal held that the assessee had sufficiently explained the source of the gifts from her relatives, thus the addition of Rs. 10,00,000/- was unjustified. Regarding the school expenses, the Tribunal found that the assessee had shown net income and explained withdrawals for expenses, deleting the addition of Rs. 80,298/-.

The Tribunal held that since the disallowance of loss, which formed the basis for the penalty, was not sustained in the quantum appeal, the penalty cannot be sustained. Therefore, the penalty was deleted.