2020 (2) TMI 167 - HC - Income Tax

Exemption u/s 11 - whether assessee is a charitable association and is eligible for deduction u/s 11? - whether activity carried out by the assessee is in the nature of running Coaching Classes or Center and therefore the benefit of Section 11 cannot be extended to the respondent? - HELD THAT - As decided in own case 2018 (4) TMI 197 - BOMBAY HIGH COURT this objection/grievance of the Revenue has been taken up for the first time across the bar. There is no such objection taken before the authorities by the Revenue. Besides, nothing has been shown to us why it should be considered as a coaching class. The impugned order of the Tribunal has only applied the decision of this Court in Samudra Institute of Maritime Studies Trust 2014 (9) TMI 575 - BOMBAY HIGH COURT to conclude that the activities which are run by the respondent-institute is an educational activity and not in the nature of running a Coaching Center or a Class. The Revenue is not able to point why it would not apply. We may also point out that the grant or refusal to grant exemption under Section 10(22) and/or (23C) of the Act cannot govern the application of Section 11 of the Act. In any case, we are informed that no appeals in respect of Section 10(22) and/or (23c)(vi) of the Act are pending disposal. No substantial question of law.

Summary

Issues: Whether the respondent-assessee is a charitable association eligible for deduction under Section 11 of the Income Tax Act, 1961.

Analysis:
1. The High Court heard arguments from the revenue's standing counsel and the respondent-assessee's counsel regarding an appeal under Section 260A of the Income Tax Act against the Tribunal's order for the assessment year 2009-10.
2. The main issue revolved around whether the Tribunal was justified in holding that the respondent-assessee qualifies as a charitable association eligible for deduction under Section 11 of the Act.
3. The Tribunal's decision was based on a previous order in a similar case for the assessment year 2008-09, where it was determined that the respondent was an institute for charitable purposes under Section 2(15) of the Act.
4. The revenue had previously appealed against the Tribunal's decision in the 2008-09 case, but the High Court dismissed the appeal, stating that the respondent's activities were educational and not akin to running a coaching center, thus qualifying for exemption under Section 11 of the Act.
5. The High Court found no substantial question of law in the present appeal and dismissed it, upholding the Tribunal's decision regarding the respondent's eligibility as a charitable association for deduction under Section 11 of the Income Tax Act.

This detailed analysis provides a comprehensive overview of the judgment, highlighting the key legal arguments and decisions made by the High Court in the case.