2020 (10) TMI 1394 - AT - Income Tax

Exemption u/s. 11 - charitable activity u/s 2(15) - activities of the assessee is to organize meetings, seminars, workshops, conferences, brainstorming exhibitions in India and abroad and keep up with the latest developments in the field of oil, lubricants and fuel gas world over and charging fees from delegates - HELD THAT - The undisputed fact is that the very issues were there in A.Y. 2009-10 to A.Y. 2012-13 - We further find that CIT (A) while deciding the appeal in favour of the assessee has followed the earlier years orders find that the activities of the assessee are in the nature of education and therefore Proviso to Sec. 2(15) shall not apply to it. The exemption u/s. 11 is therefore allowable. Appeals filed by the revenue are accordingly dismissed.

Summary

Issues:
Appeals by revenue against CIT(A) orders for A.Y. 2013-14 and 2014-15 regarding charitable nature of activities and eligibility for exemption u/s. 11.

Analysis:
The Appellate Tribunal considered two separate appeals by the revenue against CIT(A) orders for A.Y. 2013-14 and 2014-15. The main issue revolved around the nature of the assessee's activities and their eligibility for exemption under section 11 of the Income Tax Act. The revenue contended that the activities of the assessee, which included organizing meetings, seminars, workshops, and charging fees from delegates in the field of oil, lubricants, and fuel gas, were not charitable in nature. They argued that the activities were commercial in nature and aimed at earning profits, thus falling outside the purview of charitable activities. The revenue raised common grounds in both appeals, emphasizing that the assessee's activities were hit by the proviso to section 2(15) of the Act.

The Tribunal noted that similar issues had been decided in favor of the assessee for A.Y. 2009-10 to 2012-13. The CIT(A) in the earlier years had held that the activities of the assessee were in the nature of education, falling under the second limb of section 2(15) and thus eligible for exemption under sections 11 and 12 of the Act. The Tribunal observed that the facts and circumstances remained consistent across the years, and the nature of disallowances and reasoning were the same. The Tribunal also referred to previous orders and decisions, including those of the High Court, supporting the assessee's position.

Furthermore, the Tribunal highlighted that the Hon'ble High Court of Delhi had declined to interfere with the Tribunal's findings for A.Y. 2009-10, stating that no substantial question of law arose. The High Court's decision reinforced the Tribunal's stance on the nature of the assessee's activities being educational and thus qualifying for exemption under the relevant sections of the Act. Consequently, the Tribunal declined to interfere with the CIT(A)'s findings and dismissed both appeals filed by the revenue.

In conclusion, the Tribunal upheld the CIT(A)'s orders in favor of the assessee, emphasizing the educational nature of the activities and the eligibility for exemption under sections 11 and 12 of the Income Tax Act. The consistent findings across multiple years and the support from previous decisions and the High Court reinforced the Tribunal's decision to dismiss the revenue's appeals.