2017 (8) TMI 421 - HC - Income Tax

Benefit of exemption under Section 11 - proof of charitable activity - Held that - Both the CIT (A) as well as the ITAT have returned concurrent factual findings to the effect that notwithstanding the amount earned through publication or sale of books as noted above, the essential activity of the Assessee remained charitable in nature, viz., imparting education and relief to poor. The Court is not persuaded to hold that the above concurrent factual findings suffer from any perversity requiring interference by this Court. - Decided against revenue

Summary

Issues:
1. Delay in filing the appeal.
2. Interpretation of Section 11 of the Income Tax Act, 1961 regarding exemption for charitable activities.

Analysis:
1. The judgment begins by addressing the delay in filing the appeal, which is condoned for reasons stated in the application. The court disposes of the application swiftly.

2. Moving on to the main issue, the appeal by the Revenue questions whether the ITAT erred in upholding the order of the CIT (A) granting the Assessee exemption under Section 11 of the Income Tax Act, 1961. The Revenue argues that the Assessee, despite earning income from book sales, should not be considered to be carrying out charitable activities due to a proviso in Section 2(15) inserted from April 1, 2009.

3. Both the CIT (A) and the ITAT have found that the Assessee's primary charitable activity is imparting education and providing relief to the poor, despite earning income from book sales. The court notes that the factual findings of both lower authorities are concurrent and not perverse. It concludes that the Assessee's activities remain charitable in nature, and there is no need for the court to interfere.

4. The court states that no substantial question of law arises for consideration in this case. As a result, the appeal by the Revenue is dismissed, and no costs are awarded. The judgment provides a clear and concise analysis of the interpretation of Section 11 of the Income Tax Act, 1961 in the context of charitable activities, emphasizing the importance of the nature of the activities carried out by the Assessee in determining eligibility for exemption.