2021 (3) TMI 930 - AT - Income Tax

Eligibility of exemption u/s 11 - activities carried out by the society during the instant Assessment Year were not found to be covered by any limb of charitable purpose as defined in section 2(15) - HELD THAT - In assessee s own case on identical facts and circumstances for assessment years 2009-10 and 2011-12 the co-ordinate bench 2018 (3) TMI 1903 - ITAT DELHI . The co-ordinate bench in para Nos. 8 to 15 decided the issue holding that assessee Society is eligible for exemption under Section 11 of the Act. Thus, the orders of the ld. CIT (Appeals) were upheld. DR could not show us any reason that why we should differ from the issue already decided by the co-ordinate bench when same facts and circumstances prevailed. In view of this, respectfully following the decision of the co-ordinate bench in assessee s own case for assessment years 2009- 10 and 2011-12 we dismiss the appeal of the ld. Assessing Officer. Thus, appeal of the Assessing Officer is dismissed.

Summary

Issues:
Appeal against order granting exemption under Section 11 of the Income Tax Act for Assessment Year 2012-13 based on the definition of 'charitable purpose' under Section 2(15) of the Act.

Analysis:
The appeal before the Appellate Tribunal ITAT DELHI concerned the eligibility of the assessee for exemption under Section 11 of the Income Tax Act for the Assessment Year 2012-13. The Assessing Officer had disallowed the exemption, stating that the activities of the trust were not carried out for charitable purposes as defined in Section 2(15) of the Act. The trust, registered under the Societies Act and Section 12AA of the Act, focused on education and operated schools in Uttarakhand and Western UP. The Assessing Officer determined a loss for the assessee based on the receipt and expenditure figures, leading to the appeal before the ld. CIT (Appeals).

The ld. CIT (Appeals) analyzed the aims and objects of the society as per its Memorandum of Association, emphasizing that the society was not established to benefit any particular community. The activities of the society were found to be in compliance with the rules and regulations under which it was set up, focusing on educational and vocational institutions without discrimination. The ld. CIT (Appeals) also noted that the society's activities were not directed towards promoting a particular religion or community, as evidenced by the nature of donations received and the secular education provided in its schools.

The Tribunal referenced previous judgments to support the contention that imparting education in theology, as done by the society's New Theological College, qualified as education within the meaning of the Act. It was highlighted that as long as charitable activities were not limited to benefitting a specific community, the society was entitled to exemption under Section 11. The Tribunal upheld the orders of the ld. CIT (Appeals) based on identical facts and circumstances from previous assessment years, dismissing the appeal of the Assessing Officer.

In conclusion, the Tribunal dismissed the appeal of the Assessing Officer, affirming the eligibility of the assessee for exemption under Section 11 of the Income Tax Act for the Assessment Year 2012-13. The decision was based on the society's compliance with its stated objectives, provision of secular education, and the broader definition of education encompassing theological studies as per relevant legal precedents.