ITO (Exemptions), Delhi V. Association of India Universities, New Delhi

ITA 1649/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5900 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 29-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule of consistency
• Section: 12; 11

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH D, NEW DELHI BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 1649/DEL/2016 ASSESSMENT YEAR: 2011-12 ITO (EXEMPTION), TRUST WARD 1(1), DELHI. (APPELLANT) VS. ASSOCIATION OF INDIAN UNIVERSITIES, 16, COMRADE INDRAJIT GUPTA MARG, NEW DELHI.(PAN- AAATA0407F) (RESPONDENT) REVENUE BY SH. SHAILESH GUPTA, CA ASSESSEE BY SH. AMIT JAIN, SR. DR ORDER PER L.P. SAHU, A.M.: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 18.01.2016 OF LD. CIT(A)-40, NEW DELHI FOR THE ASSE SSMENT YEAR 2011-12 ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSES SEE BY IGNORING THE FACT THAT THOUGH THE OBJECTS OF THE ASSESSEE SEEM T O BE CHARITABLE IN NATURE BUT THE ACTIVITIES WHICH YIELDED INCOME TO THE ASSE SSEE ARE COMMERCIAL IN NATURE. 2. WE HAVE HEARD THE SUBMISSIONS OF BOTH THE PARTIE S AND HAVE CAREFULLY GONE THROUGH THE IMPUGNED ORDER AND THE O RDER OF THE ASSESSING OFFICER. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS REGARDING REFUSAL OF DATE OF HEARING 30.05.2018 DATE OF PRONOUNCEMENT 30 .05.2018 ITA NO. 1649/DEL./2016 2 EXEMPTION CLAIMED BY THE ASSESSEE SOCIETY U/S. 11(1 ) OF THE IT ACT. THE ASSESSING OFFICER REFUSED TO GRANT EXEMPTION CLAIME D BY THE ASSESSEE WITH ALL CONSEQUENTIAL BENEFITS, ON THE PREMISE THAT AS PER ASSESSING OFFICER THE ACTIVITIES OF THE ASSESSEE-ASSOCIATION WERE NOT CHA RITABLE AS CONTEMPLATED U/S. 2(15) OF THE IT ACT. ACCORDINGLY, THE ASSESSING OFF ICER DETERMINED THE TOTAL INCOME AT RS.6,30,50,050/- TAXABLE IN THE HANDS OF ASSESSEE-ASSOCIATION. THE LD. CIT(A) DELETED THE ADDITION HOLDING THE ASSESSE E A CHARITABLE ASSOCIATION AND DIRECTED THE ASSESSING OFFICER TO ALLOW EXEMPTI ON U/S. 11(1) OF THE ACT, AS THE ASSESSEE IS NOT INVOLVED IN ANY TRADE, COMMERCE OR BUSINESS ACTIVITIES TO ATTRACT THE MISCHIEF OF PROVISO TO SECTION 2(15). T HE CONTENTION OF THE LEARNED AR IS THAT THE IDENTICAL ISSUE INVOLVED IN THIS APP EAL, CAME FOR CONSIDERATION BEFORE THE ITAT DELHI BENCH IN THE CASE OF ASSESSEE ITSELF FOR A.Y. 2010-11 AND THE CO-ORDINATE BENCH OF TRIBUNAL AFTER RELYING ON VARIOUS DECISIONS, HAS RECENTLY DECIDED THE ISSUE IN FAVOUR OF THE ASSESSE E AND AGAINST THE ASSESSEE VIDE ORDER DATED 11.05.2018(ITA NO. 5328/DEL/2015) (COPY PLACED ON RECORD). IT WAS, THEREFORE, SUBMITTED THAT THE ISSU E IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THIS DECISION. THE LD. DR OPPOSING THE CONTENTIONS OF THE ASSESSEE, RELIED ON THE ORDER OF THE ASSESSING OFFICER. ON GOING THROUGH THE ENTIRE MATERIAL ON RECORD, WE FIND THAT THE ISSUE I NVOLVED IN THIS APPEAL IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF CO-ORDINATE ITA NO. 1649/DEL./2016 3 BENCH IN ASSESSEES OWN CASE FOR A.Y. 2010-11 (SUPR A). IN THAT CASE, THE ASSESSMENT ORDERS, GROUNDS OF APPEAL, ORDER OF LD. CIT(A), SUBMISSIONS OF THE ASSESSEE AND THE CASE LAWS RELIED, ARE ALTOGETHER S AME AS IN THE PRESENT CASE. FOR READY REFERENCE, THE DECISION REACHED BY CO-ORD INATE BENCH IS REPRODUCED HEREIN BELOW : 8. WHEN WE EXAMINE THE ORDER PASSED BY THE LD. CIT ( A) IN THE LIGHT OF THE FACT THAT CONTINUOUSLY IN THE PRECEDING YEARS FROM 2005-06 TO 2008-09, INCOME FROM PUBLICATION AND SALE OF GOODS HAS BEEN ACCEPTED AND EXEMPTION U/S 11 & 12 OF THE ACT HAS BEEN ALLOWED, NO NEW FACT HAS BEEN BROUGHT ON RECORD BY THE AO TO DEPART FROM RULE OF CONSISTENCY AS HAS BEEN LAID DOWN BY THE HONBLE APEX COURT IN RADHASW AMI SATSANG VS CIT (1992), 193 ITR 321 (S.C.) CASE. 9. MOREOVER WHEN PREDOMINANT ACTIVITIES OF THE ASSE SSEE TRUST ARE PROMOTION OF EDUCATION & SPORTS ACTIVITIES AND ITS MAJOR SOURCE OF INCOME IS GRANT FROM THE MINISTRY OF HRD AND MINISTRY OF Y OUTH AFFAIRS AND SPORTS, MEMBERSHIP FEES FROM THE UNIVERSITIES ETC., NO GROUND IS MADE OUT TO INVOKE THE PROVISO TO SECTION 2 (15) OF THE ACT. MOREOVER, IT IS THE ADMITTED CASE OF THE REVENUE THAT THE ASSESSEE TRUS T IS ONLY PUBLISHING AND SELLING TEXT BOOK AND READING MATERIAL WHICH IS BEI NG SUPPLIED TO THE STUDENTS ONLY. SO, MERELY RECEIVING FEE AND CHARGES FROM THE UNIVERSITIES AND SELLING TEXT BOOKS TO THE STUDENTS DO NOT AMOUN T TO ENTERING INTO TRADE, COMMERCE AND BUSINESS ACTIVITIES, PARTICULAR LY WHEN THE ASSESSEE TRUST IS BEING RUN ON THE BASIS OF THE GRANTS BY TH E GOVERNMENT OF INDIA AND ON THE BASIS OF FEE BEING COLLECTED FROM UNIVER SITIES AND ITS MEMBERS. 10. IN VIEW OF WHAT HAS BEEN DISCUSSED ABOVE, WE AR E OF THE CONSIDERED VIEW THAT THE LD. CIT (A) HAS PASSED WELL-REASONED ORDER IN THE LIGHT OF THE SETTLED PROPOSITION OF LAW IN THE CASE CITED AS DEL HI MUSIC SOCIETY VS. DGIT 204 TAXMAN 231 (DELHI), CIT VS. DOON FOUNDATION 154 ITR 208 (CALCUTTA) AND THE STUDENT UNION IN LONDON HOSPITAL MEDICAL COLLEGE VS. IRC AND ATTORNEY GENERAL 24 TAXMAN 161. SO, FINDI NG NO ILLEGALITY OR PERVERSITY IN THE IMPUGNED ORDER PASSED BY THE LD. CIT (A), PRESENT APPEAL FILED BY THE REVENUE IS HEREBY DISMISSED. ITA NO. 1649/DEL./2016 4 3. NO CONTRARY MATERIAL OR DECISION IS BROUGHT ON R ECORD ON BEHALF OF THE REVENUE IN ITS SUPPORT. THEREFORE, RESPECTFULLY FOL LOWING THE ABOVE DECISION OF CO-ORDINATE BENCH, THE APPEAL OF THE REVENUE IS FOU ND TO HAVE NO MERITS AND IS LIABLE TO FAIL. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MAY, 2018. SD/- SD/- (BHAVNESH SAINI) ( L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 TH MAY, 2018 *AKS* COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI DATE 1. DRAFT DICTATED (DNS) 30.05.18 PS 2. DRAFT PLACED BEFORE AUTHOR 30.05.18 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/ AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.