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2021 (12) TMI 403 - AT - Income TaxExemption u/s 11 - denial of claim as assessee has earned on account of IPD charges from patients which according to AO was nothing but the charges recovered from accommodation facilities provided to the customers who visits the trust to attend the shivirs and participate in the various activities of trust - HELD THAT - We find that AO while deciding the case for A.Y. 2009-10 had held that the assessee was not eligible for exemption u/s 11/12 of the Act and the order of AO was upheld by CIT(A). When the matter for A.Y. 2009-10 was carried before the Tribunal, Tribunal held that AO was not justified in denying the exemption u/s 11/12 of the Act to the assessee 2013 (10) TMI 211 - ITAT DELHI Thereafter, Revenue had carried the matter before the Hon ble Uttarakhand High Court 2019 (2) TMI 1616 - UTTARAKHAND HIGH COURT and the Hon ble Uttarakhand High Court had upheld the order of the Tribunal. Against the order of Uttarakhand High Court, Revenue had filed SLP before the Hon ble Apex Court 2019 (8) TMI 535 - SC ORDER which was dismissed. We also find that identical issue arose in assessee s own case in A.Y. 2014-15 and the Co-ordinate Bench of Tribunal had dismissed the appeal of the Revenue by following the order of Co-ordinate Bench of Tribunal for A.Y. 2010-11 to 2013-14 and relying on Hon ble Uttarakhand High Court order in assessee s own case for A.Y. 2009-10. Since the facts in the year under consideration being identical to that of earlier years, we find no reason to interfere with the order of CIT(A). Thus the grounds of Revenue are dismissed.
Issues:
- Whether the assessee trust is eligible for exemption under Sections 11 and 12 of the Income Tax Act. - Whether the order of the Commissioner of Income Tax (Appeals) should be upheld or not. Analysis: 1. The appeal by the Revenue challenged the order of the Commissioner of Income Tax (Appeals) relating to the Assessment Year 2015-16. The Revenue contended that the CIT(A) erred in deleting the addition of a substantial amount made by the Assessing Officer (AO) regarding profit from business undertakings. 2. The AO observed that the trust had earned significant profit, leading to the conclusion that the trust was engaged in business activities. The AO disallowed exemption under Sections 11 and 12 of the Act, citing that the trust's activities did not qualify as charitable in nature but rather as "advancement of any other objectives of general public utility." The AO brought the entire income of the trust to tax, resulting in a substantial tax liability. 3. The CIT(A), in deciding the issue, noted that in previous years, the Tribunal and his predecessor had ruled in favor of the assessee trust, directing the AO to extend the exemption under Sections 11 and 12. The CIT(A) found no change in the facts from the previous years, leading to the decision to allow the appeal of the assessee and grant the exemption. 4. During the proceedings, the assessee's representative highlighted previous favorable decisions in the assessee's case, including rulings by the Tribunal and the High Court. The representative argued that the Revenue's appeal should be dismissed based on consistent favorable judgments in the assessee's favor. 5. The Tribunal, after considering the arguments and reviewing the precedents, upheld the order of the CIT(A). The Tribunal noted that previous decisions, including those by the Tribunal and the High Court, supported the assessee's eligibility for exemption under Sections 11 and 12. Since the facts in the current year were similar to those in previous years where the assessee had been granted exemption, the Tribunal dismissed the Revenue's appeal. In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the order of the CIT(A) and granting the assessee trust exemption under Sections 11 and 12 of the Income Tax Act for the Assessment Year 2015-16.
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