2016 (12) TMI 1860 - HC - Income Tax

Exemption u/s 11 - Charitable activity u/s 2(15) - HELD THAT - The assessee claims to be engaged in the maintaining of national/international youth centres at suitable centres in India for the benefit of foreign students and youth delegates as well as individuals visiting India and the assessee claims to be engaged, on non-profit basis, in establishing and running schools and regional centres for students and holds seminars and conferences. For the relevant years, the assessee reported receipt of some amounts towards fees for conducting various activities. Assessing Officer (AO) felt that since the assessees were engaged in providing commercial activity, the proviso to Section 2(15) was attracted. The ITAT ruled - on the basis of this Court s judgments in India Trade Promotion Organization v. DGIT 2015 (1) TMI 928 - DELHI HIGH COURT and Institution of Chartered Accounts 2013 (7) TMI 205 - DELHI HIGH COURT that the mere circumstance of collection of such amounts did not result in the assessees losing their essential character of being established for charitable purposes. No substantial question of law

Summary

The Delhi High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT) that the assessee was entitled to exemption under Section 11 of the Income Tax Act, 1961. The ITAT ruled that collecting fees did not change the charitable nature of the organizations. The court found no substantial question of law and dismissed the appeals.