2017 (1) TMI 457 - HC - Income Tax

Entitlement to exemption under Section 11 - Held that - The Assessing Officer (AO) felt that since the assessee was 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 v. DGIT(E) (2013 (7) TMI 205 - DELHI HIGH COURT) that the mere circumstance of collection of such amounts did not result in the assessee losing its essential character of being established for charitable purposes. We are of the opinion that the ITAT s decision is sound in law and facts. No substantial question of law arises

Summary

The High Court of Delhi dismissed the appeal by the Revenue, upholding the Income Tax Appellate Tribunal's decision that the assessee was entitled to exemption under Section 11 of the Income Tax Act, 1961. The assessee, engaged in promoting awareness in the automobile industry, received fees for conducting seminars. The ITAT ruled that this did not affect the assessee's charitable status. The Court found the ITAT's decision legally sound, with no substantial question of law, and dismissed the appeal.