2018 (3) TMI 1601 - HC - Income Tax

Charitable trust - benefit under Section 10(23C)(iv) - proof of charitable activities - Held that - As decided in assessee s own case 2013 (10) TMI 19 - DELHI HIGH COURT the assessee is entitled to the benefit under Section 10(23C)(iv) of the Act and also for its registration under Section 12AA (1) of the Act. - decided in favour of assessee

Summary

Issues:
- Appeal against decision of Income Tax Appellate Tribunal (ITAT) for A.Y. 2011-12.
- Contention regarding classification of respondent/assessee as a charitable trust under Section 2(15) and Section 10(23C)(iv) of the Income Tax Act, 1961.

Analysis:
The High Court addressed the appeal challenging the ITAT's decision for the assessment year 2011-12. The crux of the matter was the classification of the respondent/assessee as a charitable trust under the relevant sections of the Income Tax Act. The Revenue argued that the ITAT erred in considering the respondent as a charitable trust, thereby invoking specific provisions of the Act.

The ITAT's decision was influenced by a previous ruling of the High Court in a similar case involving the assessee. Specifically, the ITAT relied on the judgment delivered in the case of Commissioner of Income Tax-(Exemptions) vs. M/s GS1 India, which was decided on 16.02.2018. Additionally, the ITAT referenced another order of the High Court in the case of M/s GS1 India vs. Director General of Income Tax (Exemption), dated 26.09.2013.

The High Court noted consistency in its previous judgments concerning the same issue for another assessment year, where decisions favored the assessee over the Revenue. Notably, in the case of Commissioner of Income Tax vs. M/s GS1 India, decided on 16.02.2018, the Court had ruled in favor of the assessee regarding entitlement under Section 10(23C)(iv) and registration under Section 12AA(1) of the Act.

Consequently, the High Court concluded that no substantial question of law arose in the present appeal. Given the consistent rulings in favor of the assessee in previous cases and the established entitlement to specific benefits under the Act, the appeal was dismissed by the Court.