M/s. Praxis Institute for Participatory Practices, New Delhi V. DCIT (E), New Delhi

CO 331/DEL/2015

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3856 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 05-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 16-12-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution; Benefit of exemption

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER , AND SHRI N.K. CHOUDHRY , JUDICIAL MEMBER ITA NO. 267 9 /DEL/201 5 [ASSESSMENT YEAR: 20 1 0 - 1 1 ] & ITA NO. 2680 /DEL/201 5 [ASSESSMENT YEAR: 20 11 - 12 ] THE D.C. I.T (E) VS. PRAXIS INSTITUTE FOR PARTICIPATORY PRACTICES CIRCLE 2 ( 1 ) B - 5, 2 ND FLOOR, GREATER KAILASH ENCLAVE NEW DELHI NEW DELHI PAN : AA EFP 7881 Q CO NO. 331/DEL/2015 ITA NO. 2679 /DEL/201 5 [ASSESSMENT YEAR: 20 10 - 11 ] & CO NO. 331/DEL/2015 ITA NO. 2680 /DEL/201 5 [ASSESSMENT YEAR: 20 11 - 12 ] PRAXIS INSTITUTE FOR P ARTICIPATORY PRACTICES VS. THE D.C. I.T (E) B - 5, 2 ND FLOOR, GREATER KAILASH ENCLAVE CIRCLE 2(1) NEW DELHI NEW DELHI PAN : AAEFP 7881 Q [APP ELLANT] [RESPONDENT] DATE OF HEARING : 0 5 .0 6 .2018 DATE OF PRONOUNCEMENT : 0 5 .0 6 .2018 ASSESSEE BY : NONE REVENUE BY : SHRI RAVI KANT GUPTA , SR. DR 2 ORDER PER BENCH: - ITA NO. 2679/DEL/2015 AND CO NO. 331/DEL/2015 ARE APPEAL BY THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE CIT(A) - 40 , NEW DELHI DATED 2 3 . 0 2 .201 5 PERTAINING TO A.Y 20 1 0 - 11 . ITA NO. 2680/DEL/2015 AND CO NO. 332/DEL/2015 ARE APPEAL BY THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE CIT(A) - 40, NEW DELHI DATED 23.02.2015 PERTAINING TO A.Y 2011 - 12. THE APPEALS AND CROSS OBJECTIONS WERE HEARD TO GETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 2. THE SOLITARY GRIEVANCE OF THE REVENUE IN BOTH THESE APPEALS IS THAT THE LD. CIT(A) HAS ERRED IN ALLOWING EXEMPTION U/S 11(1) OF THE INCOME - TAX ACT, 1961 [HER EINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] AND TREATING THE SAME AS CHARITABLE INSTITUTION AS ACTIVITIES OF ASSESSEE ARE IN THE NATURE OF TRADE, COMMERCE OR BUSINESS AND, THEREFORE, COVERED BY THE PROVISO TO SECTION 2(15) OF THE ACT. 3 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A REGISTERED SOCIETY UNDER THE SOCIETIES REGISTRATION ACT, 1860 AND IS ALSO REGISTERED U/S 12AA(1) OF THE ACT. THE ASSESSEE WAS ENJOYING BENEFIT OF EXEMPTION U/S 11(1) OF THE ACT AS CHARITABLE INSTITUTION BUT THE SAME WAS DENIED BY THE ASSESSING OFFICE R DURING THE YEARS UNDER DISPUTE ON THE GROUND THAT THE ASSESSEE IS INVOLVED IN TRADE, COMMERCE OR BUSINESS AS THE ASSESSEE IS RECEIVING FEES AND RECEIPTS FOR CONSULTANCY, ETC. FOR RESEARCH WORK. THEREFORE, PROVISO TO SECTION 2(15) OF THE ACT SQUARELY APP LIED ON THE FACTS OF THE CASE. THE ASSESSING OFFICER FOUND THAT IN ASSESSMENT YEAR 2009 - 10 AND 2010 - 11, THE THEN ASSESSING OFFICER HAD DENIED EXEMPTION U/S 11(1) OF THE ACT AND FOLLOWING THE ORDER OF THE PREDECESSOR ON SIMILAR GROUNDS, THE ASSESSING OFFIC ER DENIED CLAIM OF EXEMPTION FOR THE YEAR UNDER CONSIDERATION. 4. WE HAVE HEARD THE SUBMISSIONS OF THE LD. DR AND HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT IN ASSESSMENT YEAR 2009 - 10 THE MATTER TRAVELLED UPTO THE TRIBUNAL AND THE TRIBUNAL IN ITA NO. 5891/DEL/2012 HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE ON SIMILAR GROUNDS OF APPEAL AS FILED BY THE REVENUE FOR THE YEARS UNDER CONSIDERATION. 4 5. WE FIND THAT ON IDENTICAL FACTS, THE JURISDICTIONAL HIGH COU RT OF DELHI IN TAX APPEAL NO. 867, 868 AND 869 OF 2016 HAS DECIDED A SIMILAR ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. R ESPECTFULLY FOLLOWING THE DECISION S OF THE CO - ORDINATE BENCHES AND ALSO THE HON'BLE JURISDICTIONAL HIGH COURT, WE DECLINE TO INTERFERE WITH THE FINDING OF THE LD. CIT(A). APPEALS FILED BY THE REVENUE ARE ACCORDINGLY DISMISSED. THE CROSS OBJECTIONS OF THE ASSESSEE BECOME OTIOSE. 11 . IN THE RESULT, THE APPEAL S OF THE REVENUE STAND DISMISSED WHEREAS THE CROSS OBJECTIONS HAVE BECOME OTIOSE . THE ORDER IS PR ON OUNCED IN THE OPEN COURT ON 0 5 .0 6 .2018. SD/ - SD/ - [ N.K. CHOUDHRY ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 5 T H JUNE , 2018 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI