DCIT (E), New Delhi V. M/s. Petrotech, New Delhi

ITA 4233/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0661 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 01-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SULEKHA VERMA
• Keywords: Question of law
• Section: 80G; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEM BER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.-4233/DEL/2016 ASSESSMENT YEAR: 2011-12 DY. COMMISSIONER OF INCOME-TAX (E), CIRCLE- 2(1), NEW DELHI VS . M/S. PETROTECH, 601/604, TOLSTOY HOUSE, TOLSTOY MARG, CONNAUGHT PLACE, NEW DELHI-110001 PAN : AAAAP0965E APPELLANT RESPONDENT ASSESSEE BY : SH. V.K.SABHARWAL, ADV., SH. RAJAN GUPTA, CA REVENUE BY : SMT. SULEKHA VERMA, CIT-DR DATE OF PRONOUNCEMENT : 20.12.2019 ORDER PER ANADEE NATH MISSHRA, J.M.: THIS APPEAL IS PREFERRED BY THE DEPARTMENT AGAINST ORDER DATED 06.05.2016 PASSED BY THE LD. CIT (APPEA LS)-36, NEW DELHI FOR ASSESSMENT YEAR 2011-12. 2. FOLLOWING GROUNDS OF APPEAL HAVE BEEN RAISED IN THIS APPEAL : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN LAW IN HOLDING THAT THE ACTIVITIES OF THE ASSESSEE ARE CHARITABLE IN NATURE AND THAT ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S 11 OF I.T. ACT BY IGNORING THE FACT THAT ACTIVITIE S OF THE ASSESSEE IS TO ORGANIZE MEETINGS, SEMINARS, 2 ITA NO. 4233/DEL/2016 (PETROTECH) WORKSHOPS, CONFERENCES, BRAINSTORMING EXHIBITIONS IN INDIA AND ABROAD AND KEEP UP WITH THE LATEST DEVELOPMENT IN THE FIELD OF OIL, LUBRICANTS AND FUE L GAS WORLD OVER AND CHARGING FEES FROM DELEGATES. THE ASSESSEE'S ACTIVITIES FALLS UNDER THE LAST LIMB OF SECTION 2(15] OF THE I.T. ACT AND HIT BY THE PROVIS O TO SECTION 2(15). 2. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. THE ISSUE IN THE PRESENT APPEAL IS REGARDING ASS ESSEES ELIGIBILITY FOR EXEMPTION U/S 11 OF I.T.ACT. IN THE COURSE OF APPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBU NAL, THE COPIES OF THE FOLLOWING ORDERS WERE FILED FROM THE ASSESSEES SIDE (A) ASSESSMENT ORDER DATED 23.12.2011 IN THE C ASE OF M/S. PETROTECH FOR ASSESSMENT YEAR 2009-10 PASSED B Y THE ASSISTANT DIRECTOR OF INCOME TAX (E) (B) ORDER DATE D 15.10.2012 OF COMMISSIONER OF INCOME TAX (APPEALS) FOR ASSESSMENT YEAR 2009-10 IN THE CASE OF M/S PETROTEC H (C) ORDER DATED 11.04.2017 OF CO-ORDINATE BENCH OF ITAT DELHI IN THE CASE OF DDIT(E) VS. PETROTECH IN ITA NO. 6259/DEL/2012 FOR ASSESSMENT YEAR 2009-10 (D) ORDER DATED 20.12.2017OF HONBLE HIGH COURT OF DELHI IN T HE CASE OF CIT(E) VS. PETROTECH IN ITA NO. 1172/2017, (E) ASSESSMENT ORDER DATED 29.03.2014 IN THE CASE OF PE TROTECH FOR ASSESSMENT YEAR 2011-12 (F) CONSOLIDATED APPELL ATE ORDER DATED 06.05.2016 OF COMMISSIONER OF INCOME TAX (APP EALS) IN THE CASE OF M/S. PETROTECH FOR ASSESSMENT YEARS 2010-11 AND 2011-12. 3 ITA NO. 4233/DEL/2016 (PETROTECH) 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE INFORMED US THAT ALL THE AFORESAID ORDERS HAVE BEEN PASSED IN THE CASE OF THE ASSESSEE. HE FURTHER SUBMITTED T HAT THE ISSUE IN DISPUTE IN THE PRESENT APPEAL, REGARDING E LIGIBILITY FOR EXEMPTION U/S 11 OF INCOME TAX ACT IS COVERED I N FAVOUR OF THE ASSESSEE VIDE AFORESAID ORDER DATED 11.04.20 17 OF CO- ORDINATE BENCH OF ITAT DELHI PASSED IN ASSESSEES O WN CASE. HE FURTHER SUBMITTED THAT THE ISSUE IS ALSO COVERED IN FAVOUR OF THE ASSESSEE BY AFORESAID ORDER DATED 20.12.2017 OF HONBLE HIGH COURT OF DELHI. HE DREW OUR ATTENTION TO THE RELEVANT PORTIONS OF THE AFORESAID ORDERS DATED 11. 04.2017 AND 20.12.2017. THE LD. COUNSEL FOR THE ASSESSEE AL SO SUBMITTED THAT FACTS AND CIRCUMSTANCES BEING IDENTI CAL FOR ASSESSMENT YEAR 2011-12 TO WHICH THE PRESENT APPEAL RELATES, THE ISSUE IN DISPUTE SHOULD BE DECIDED IN FAVOUR OF THE ASSESSEE IN THE PRESENT APPEAL ALSO. THE LD. CI T-DR APPEARING FOR REVENUE AGREED WITH THE SUBMISSIONS O F THE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE IN DISP UTE REGARDING ASSESSEES ELIGIBILITY FOR EXEMPTION U/S 11 OF I.T. ACT IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE B Y THE AFORESAID ORDERS DATED 11.04.2017 AND 20.12.2017 OF ITAT AND HONBLE HIGH COURT RESPECTIVELY. SHE FURTHER AG REED THAT FACTS AND CIRCUMSTANCES RELEVANT TO THE PRESEN T APPEAL ARE IDENTICAL TO FACTS AND CIRCUMSTANCES PERTAINING TO THE AFORESAID ORDERS DATED 11.04.2017 AND 20.12.2017. 4. WE HAVE HEARD BOTH THE SIDES AND ALSO PERUSED TH E MATERIAL FROM RECORD. FOR EASE OF REFERENCE, THE RE LEVANT 4 ITA NO. 4233/DEL/2016 (PETROTECH) PORTIONS OF THE AFORESAID ORDERS DATED 11.04.2017, 20.12.2017 ARE REPRODUCED BELOW :- ITA NO. 6259/DEL/2012, A.Y. 2009-10 ORDER DATED 11.04.2017 7. WE HAVE CAREFULLY PERUSED THE MEMORANDUM OF ASSO CIATION AND BY LAWS OF THE SOCIETY, WHICH ARE PLACED BEFORE US, AND PAGE NO. 30 OF THE PAPER BOOK. ACCORDING TO THAT, THE ASSESSEE IS REQUIRED TO PROVIDE A FORUM FOR NATIONAL AND INTERNATIONAL EXPE RTS IN OIL AND GAS INDUSTRY EXCHANGE VIEW AND SHARE THEIR KNOWLEDGE EX PERT EYES AND EXPERIENCE. FURTHER, IT IS ALSO FORMED TO IDENTIFY NEW AREAS FOR COOPERATION AND TECHNOLOGY TRANSFER RELATING TO PET ROLEUM INDUSTRY AND TO FIND OUT NEW WAYS TO ASSIMILATE AND HARNESS THE PETROLEUM RESOURCES OF THE WORLD FOR THE BENEFIT OF MANKIND. THEREFORE ON LOOKING AT THE CLAUSE NO. 3 OF THE MEMORANDUM OH AS SOCIATION OF THE ASSESSEE IT IS APPARENT THAT ASSESSEE IS FORMED TO CARRY ON THE EDUCATIONAL ACTIVITIES IN THE FIELD OF OIL AND GAS INDUSTRY. THE ANNUAL ACCOUNTS PLACED BEFORE US AT PAGE NO. 22 ON 23 OF T HE PAPER BOOK SHOWS THAT THE ASSESSEE HAS EXCESS OF INCOME OF RS . 8351077 FOR THE YEAR ENDED ON 31 ST OF MARCH 2009 AND 5188749/- FOR MARCH 2008. ON A QUERY BEING RAISED BY THE BENCH THAT WHETHER T HE ASSESSEE IS STILL ENJOYING THE REGISTRATION UNDER SECTION 12 A OF THE INCOME TAX ACT OR NOT, IT WAS REPLIED BY BOTH THE PARTIES THAT STILL ASSESSEE IS REGISTERED UNDER SECTION 12 A OF THE INCOME TAX ACT . MERELY BECAUSE THE ASSESSEE IS HOLDING CONFERENCES AND SEMINARS WH ICH ARE ACCORDING TO US IN FURTHERANCE OF THE OBJECT OF EDU CATION ONLY AGAINST PAYMENT OF . FEES WILL NOT MAKE THE OBJECT OF THE T RUST FALLING INTO THE 6 TH CATEGORY I.E. ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. FURTHER MORE IT IS NOT THE CASE OF THE REVENUE THAT ASSESSE E IS NOT CARRYING ON THE OBJECTIVE FOR WHICH IT HAS BEEN FORMED AND THE FEES AND THE INCOME EARNED BY THE ASSESSEE IS NOT USED FOR CHARI TABLE, PURPOSES. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTR OVERT THE DECISIONS RELIED UPON BY THE LD. AR. THE REVENUE AL SO COULD NOT PLACE BEFORE US ANY EVIDENCE TO SHOW THAT THE OBJEC TS OF THE ASSESSEE ARE NOT EDUCATION. IN VIEW OFLTHIS WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE. LD. CIT ( IN HOLDING THAT ASS ESSEE IS ENTI TLED FOR DEDUCTION OR EXEMPTION UNDER SECTION 11 AND 12 OF T HE INCOME TAX ACT AS ASSJSSEE IS CARRYING ON THE ACTIVITY OF EDUC ATION ONLY AND INCOME GENERATED, THERE FROM IS ALSO USED FOR THE C HARITABLE OBJECTS OF EDUCATION ONLY. ITA NO. 1172/2017 ORDER DATED 20.12.2017 2. THE ASSESSEE IS A TRUST REGISTERED UNDER SECTION 12 A OF THE ACT BY AN ORDER DATED 02,08,2000. IT ALSO SECURED REGISTRA TION UNDER SECTION 80G OF THE ACT FOR AY 2009-10. THE ASSESSIN G OFFICER (AO) AFTER NOTICING ITS OBJECTS FELT THAT WHILST THE PRI NCIPAL ACTIVITY WAS IMPARTING EDUCATION, NEVERTHELESS, THE NATURE OF TH E RECEIPTS RECEIVED BY IT WAS OF COMMERCIAL CONSIDERATION. HE, THEREFOR E, BROUGHT TO TAX 5 ITA NO. 4233/DEL/2016 (PETROTECH) THE AMOUNT RECEIVED. THE ASSESSEE APPEALED* TO THE APPELLATE COMMISSIONER TO ACCEPT ITS PLEA AFTER NOTICING SEVE RAL DECISIONS INCLUDING THAT OF THIS COURT IN DIT VS. IND U AB ITA T CENTRE (2011) 203 TAXMAN 510. THE ITATS DECISION HAS RELIED ON S EVERAL JUDGMENTS OF THIS COURT INCLUDING IRDU TRADE PROMOTION O RGA NISATIONVS.D INECTORU E M.RAL OFLRVANE TA X 371 ITR 333; PH D C HAMBERS OFC CMMERCE 1 INDUSTRY VS. D IT\ 357 ITR 296, ETC. 3. HAVING REGARD TO THE CONCURRENT FINDINGS OF FACT AN D RULING IN IRDU NTRADE PROM OTIONO RGA NISATHNVS.D PECTORD E R ENAL OF INCANE TAX 371 ITR 333, THIS COURT IS OF THE OPINION THAT THE RE IS NO INFIRMITY ; OR ERROR OF LAW IN THE IMPUGNED ORDER CALLING FOR INTERFERENCE. NO SUBSTANTIAL QUESTION OF LAW ARISES . 5. BOTH SIDES HAVE AGREED BEFORE US THAT THE ISSUE IN DISPUTE IN THE PRESENT APPEAL REGARDING ASSESSEES ELIGIBILITY FOR EXEMPTION U/S 11 OF INCOME TAX ACT IS COVERED I N FAVOUR OF THE ASSESSEE BY THE AFORESAID ORDERS DATED 11.04 .2017, 20.12.2017. BOTH SIDES HAVE ALSO AGREED THAT FACTS AND CIRCUMSTANCES FOR THE PRESENT ASSESSMENT YEAR 2011- 12 ARE IDENTICAL TO THE FACTS AND CIRCUMSTANCES PERTAI NING TO THE AFORESAID ORDERS DATED 11.04.2017, 20.12.2017. NEITHER SIDE HAS BROUGHT ANY MATERIALS FOR OUR CONSIDERATIO N TO PERSUADE US TO TAKE A VIEW DIFFERENT FROM THE VIEW ALREADY TAKEN IN THE AFORESAID ORDERS DATED 11.04.2017, 20.12.2017. THEREFORE, WE DECLINE TO INTERFERE WITH THE AFORESAID IMPUGNED APPELLATE ORDER DATED 06.05.2016 OF THE LD. CIT(A). 7. FOR THE STATISTICAL PURPOSES, THE APPEAL IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.12.2019. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 20.12.2019 6 ITA NO. 4233/DEL/2016 (PETROTECH) *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 19.12.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 20.12.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 7 ITA NO. 4233/DEL/2016 (PETROTECH)