ITO, New Delhi V. M/s Praxis-Instituter for Participatory Practices, New Delhi

ITA 5247/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2872 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 05-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Question of law; Benefit of exemption
• Section: 80G; 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES G , NEW DELHI BEFORE SH. AMIT SHUKLA , JUDICIAL MEMBER DR. B. R. R. KUMAR , ACCOUNTANT MEMBER ITA NO. 5247 /DEL/201 6 : ASSTT. YEAR : 2012 - 1 3 INCOME TAX OFFICER, WARD - 2(4), NEW DELHI VS M/S PRAXIS - INSTITUTE FOR PARTICIPATORY PRACTICES, BB - 5, 2 ND FLOOR, GREATER KAILASH, ENCLAVE - 2, NEW DELHI - 110048 (APPELLANT) (RESPONDENT) PAN NO. AA EFP7881Q CO NO. 337/DEL/2016 : ASSTT. YEAR : 2012 - 13 M/S PRAXIS - INSTITUTE FOR PARTICIPATORY PRACTICES, BB - 5, 2 ND FLOOR, GREATER KAILASH, ENCLAVE - 2, NEW DELHI - 110048 VS INCOME TAX OFFICER, WARD - 2(4), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAEFP7881Q ASSESSEE BY : SH. RAJEEV KUMAR JHA , CA REVENUE BY : SH . N. K. BANSAL, SR. DR DATE OF HEAR ING: 28 . 08 .201 9 DATE OF PRONOUNCEMENT: 02 .09 .201 9 ORDER PER DR. B. R. R. KUMAR , A CCOUNTANT M EMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE L D. CIT(A) - 40 , NEW DELHI DATED 05 .07 .2016 . 2. ONLY ONE GROUND HAS BEEN RAISED IN THIS APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) HAS ERRED IN ALLOWING EXEMPTION U/S 11(1) OF THE ACT AND TREATING THE SAME AS CHARITABLE INSTITUTION AS ACTIVITIES OF ASSESSEE ARE IN THE NATURE OF TRADE, COMMERCE OR BUSINES S AND THE ITA NO . 5247 /DEL /2016 CO NO. 337/DEL/2016 PRAXIS INSTITUTE FOR PARTICIPATORY PRACTICES 2 CASE IS COVERED BY THE NEW PROVISO TO SECTION 2(15) OF THE ACT. 3. T HE ASSESSE E IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 18650 ON 14/08/1997 AND IS ALSO REGISTERED U/S 12A ON 10.03.1999 AND IS ALSO NOTIFIED U/S 80G ON 25.09.2008. THE MAIN OBJECTS OF THE ASSESSE E SOCIETY UNDERTAKING SUPPORT T O SEVERAL COMMUNITIES AND ORGANIZATIONS IN THE DEVELOPMENT SECTOR ON BENE FICIAR Y PARTICIPATIO N IN THE PROGRAMME, RESEARCH, ADVOCACY, CAPACITY BUILDING AND TRAINING WITH AN EMPHASIS ON PARTICIPATORY METHODS. THE ASSESSE E RECEIVES THE GRANTS FROM BILL AND MELINDA GATES FOUNDATION, UNICEF, CARE, IPA ETC. 3.1 THE ASSESSE E HAD BEEN ENJOYING THE BENEFIT OF EXEMPTION US 11(1) AS A CHARITABL E INSTITUTION BUT THE SAME WAS DENIED BY THE AO DURING THE A.Y 200 9 - 10 B Y INVOKING THE PROVISO OF SECTION 2(15) MAINLY ON THE GROUN D THAT TH E ASSESSE E I S INVOLVED IN TRADE, COMMERCE OR BUSINESS AS THE ASSESSE E USED TO RECEIVE F EES AND RECEIPTS OR CONSULTANCY ETC. FOR TH E RESEARCH, ADVOCACY, CAPACITY BUIL DING AND TRAINING WORKS. THE ORDER OF THE AO WAS CONFIRMED BY THE LD. CIT (A) - XXI, NEW DELHI (OLD) BUT THE SAME HAS BEEN REVERSED BY THE HON'BLE ITAT, DELHI WITH A DIRECTION TO ALLOW THE EXEMPTION U/S 11 (1) AND ALSO ALLOW THE APPROVAL OF SECTION 80G(5) VIDE PARA 19 & 20 O F THE ORDER DATED 09/01/2015 IN ITA NO. 5583/DELL/2011 AND 5891/DEL/2012. THE ORDER OF THE HON'BLE ITAT, DELHI WAS CONFIRMED BY THE HON BLE DELHI HIGH COURT ITA 672/2015 IN ITS ORDER DATED 23/09/2015 IN PARA 4 & 5 IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2009 - 10 HAS OBSERVED AS UNDER: IN VIEW OF THE ABOVE FACTUAL FINDINGS, WHICH HAVE NOT BEEN SHOWN TO BE PERVERSE, THE COURT ITA NO . 5247 /DEL /2016 CO NO. 337/DEL/2016 PRAXIS INSTITUTE FOR PARTICIPATORY PRACTICES 3 IS NOT PERSUADED TO HOLD THAT ANY SUBSTANTIAL QUESTION OF LAW ARISES FROM THE IMPUGNED ORDER OF THE TAT, DELHI. 3.2 FURTHER, THE ADDITION WAS MADE DURING THE A.Y 2010 - 11 & 2011 - 12 BY INVOKING THE PROVISO OF SECTION 2(15) MAINLY ON THE GROUND THAT THE ASSESSE E IS INVOLVED IN TRADE, COMMERCE OR BUSINESS AS THE ASSESSE E USED TO RECEIVE FEES AND RECEIPTS OR CONSULTANCY ETC. FOR THE RESEARCH, ADVOCACY, CAPAC I TY BUILDING AND TRAINING WORKS. THE ORDER OF THE AO WAS REVERSED BY THE CIT (A) - 40, NEW DELHI VIDE PARA 4.4 OF THE ORDER DATED 23/02/2015 IN APPEAL NO. 556/2013 - 14 AND 345/2014 - 15 WITH A DIRECTION TO ALLOW THE EXEMPTION U/S 11(1). 3.3 THE AO HAD AGAIN DENIED THE EXEMPTION U/S 11(1) TO THE ASSESSE E DURING THE A.Y. 2012 - 13 FOLLOWING THE EARLIER ORDER OF A.Y 2009 - 10, 2010 - 11 AND 2011 - 12 ON THE S IMILAR GROUNDS VIDE THE ORDERS OF THE AO. 3.4 THE ASSESSEE IS IN APPEAL AGAINST THE ASSESS MENT ORDER OF THE AO FOR THE A.Y 2012 - 13 AND IT IS SUBMITTED THAT THE ASSESSE E IS A CHARITABLE INSTITUTION AND THE AO IS NOT JUSTIFIED TO DENY THE EXEMPTION U/S 11(1) AND THE ASSESSEE ALSO RELIED ON THE ORDER OF THE HON'BLE I TAT, DELHI DATED 09/01/2015 AND HON'BLE DELHI HIGH COURT DATED 23/09/2015 AS REFERRED ABOVE . 4. HAVING HEARD THE ARGUMENTS AND GOING THROUGH THE RECORDS, WE FIND THAT THERE IS NO PROPER JUSTIFI CATION FOR DENYING THE EXEMPTION U/S 11(1) FOR THE A.Y 2012 - 13 AFTER THE ORDE R OF THE HON'BLE DELHI HIGH COURT AND HON'B LE ITAT, DELHI WHICH HAS ALLOWED EXEMPTION U/S 11(1) AND ACCORDINGLY THE REVENUE DIRECTED TO ALLOW THE EXEMPTIO N U/S 11(1) FOR THE A.Y 2012 - 13. ITA NO . 5247 /DEL /2016 CO NO. 337/DEL/2016 PRAXIS INSTITUTE FOR PARTICIPATORY PRACTICES 4 THE ORDER OF THE LD. CIT (A) IS HEREBY UPHELD. THE CO WHICH IS IN SUPPORT OF THE ORDE R OF THE LD. CIT (A) IS TREATED AS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED AND CO OF THE ASSESSEE IS ALLOWED . (ORDER PRO N OUNC ED IN THE OPEN COURT ON 02 /0 9 /2019). SD/ - SD/ - ( AMIT SHUKLA ) ( DR. B. R. R. KUMAR ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02 /0 9 /2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR