INCOME TAX OFFICER, NEW DELHI V. INDIAN NATIONAL THEATRE TRUST, NEW DELHI

ITA 4881/DEL/2025

AI Insights

The case involves the Income Tax Officer appealing against the order of the CIT(A) which allowed the Indian National Theatre Trust exemption under sections 11 & 12 of the Income Tax Act, 1961 for the assessment year 2017-18. The Revenue contended that the activities of the Trust, which included hiring out an auditorium and providing space for rent, were commercial in nature and thus should not qualify for the exemptions. However, both the ITAT and the Delhi High Court had previously ruled in favor of the Trust in similar circumstances, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824576 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 08-08-2025
• Other Referred Cases: ITA 7892-7893/D/91 and ITA 1589/D/92, ITA 620/2012, ITA No. 499 of 2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: V.P. GUPTA
• Keywords: Rule of consistency
• Section: 11; 12

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 4881/DEL/2025 [A.Y 2017-18] The Income tax Officer Vs. Indian National Theatre Trust Ward 1(2) Exemption Safdar Hashmi Marg, New Delhi Bengali Market, New Delhi PAN: AAATI 1040 E (Appellant) (Respondent) Assessee By : Shri V.P. Gupta, Adv Shri Anunav Kumar, Adv Department By : Shri Om Prakash, Sr. DR Date of Hearing : 26.11.2025 Date of Pronouncement : 29.12.2026 PER NAVEEN CHANDRA, AM :- This appeal by the Revenue is directed against the order of the Ld. CIT(A), Delhi dated 18.06.2025 pertaining to A.Y 2017-18. 2. The grounds raised by the Revenue read as under: 1) Whether on facts and in the circumstance of the case, Ld. CIT(A) has erred in allowing the exemption u/s 11 & 12 of the Income Tax Act, 1961. Printed from counselvise.com ITA No. 4881/DEL/2025 [A.Y 2017-18] Indian National Theatre Vs ITO Page 2 of 4 (ii) Whether on facts and in the facts and in the circumstance of the case, Ld. CIT(A) has erred in ignoring he fact that the assessee was predominantly engaged in the activities of hiring out of auditorium and providing space for rent in lieu of fee, which were commercial in nature and hence, Ist proviso to Section 2(15) of the Income Tax Act 1961 is applicable in this case. (iii) Whether on facts and in the circumstance of the case, Ld. CIT(A) has erred in ignoring the fact that the Ld. CIT(A) is justified in deleting the addition made by the AO on the ground of principle of consistency and by ignoring a legal principle that the principles of res judicata has no applicability on decision of income tax authorities as each assessment year is a separate proceeding. (iv) That the appellant craves leave to add, amend, alter OR forgo any ground/(s) of appeal either before OR at the time of hearing of the app” 3. At the very outset, the ld. counsel for the assessee vehemently submitted that the issue of claim of exemption u/s 11 & 12 of the Income-tax Act, 1961 [the Act, for short] against the income from hiring out of auditorium and providing space for rent in lieu of fee were commercial in nature is answered in favour of the assessee and against the Revenue by decision of the ITAT and the Hon'ble Delhi High Court in the case of assessee itself. Printed from counselvise.com ITA No. 4881/DEL/2025 [A.Y 2017-18] Indian National Theatre Vs ITO Page 3 of 4 4. Per contra, the ld. DR relied on the orders of the authorities below but fairly conceded that the issue is covered in favour of the assessee and against the Revenue. 5. We have heard the rival submissions and have perused the relevant material on record. We find force in the contention of the ld. counsel for the assessee that the issue involved in this case is squarely covered in favour of the assessee and against the Revenue. We find that the co- ordinate bench in assessee’s own case for A.Ys 1986-87 to 1988-89 has allowed the appeal of the assessee on identical issue vide order in ITA 7892-7893/D/91 and ITA 1589/D/92 dated 22.04.1999. Further, the Hon'ble Delhi High Court has also upheld the order of the ITAT and dismissed the appeal filed by the Revenue in the case of assessee in ITA 620/2012 order dated 19.11.2012 and ITA No. 499 of 2012 order dated 05.09.2012. 6. Respectfully following the order of the jurisdictional High Court of Delhi [supra] and the co-ordinate bench of the ITAT [supra], we dismiss the grounds of appeal raised by the Revenue. 7. In the result, appeal of the Revenue in ITA No. 4881/DEL/2025 is dismissed. Printed from counselvise.com ITA No. 4881/DEL/2025 [A.Y 2017-18] Indian National Theatre Vs ITO Page 4 of 4 Order pronounced in open court on 29.12.2026. Sd/- Sd/- [ANUBHAV SHARMA] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29th December, 2026. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website 8. Date of uploading, inf not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "