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2016 (6) TMI 933 - ITAT DELHI

2016 (6) TMI 933 - ITAT DELHI - TMI - Eligibility for exemption u/s. 11 - whether the assessee was involved in trade, commerce or business as the assessee was receiving fees from the students? - Held that:- We find considerable cogency in the finding of the Ld. CIT(E) in reversing the action of the AO by relying on the judgment of the Tribunal in assessee’s own case for the AY 2009-10 and also relying upon the judgment of the Hon’ble Jurisdictional High Court in the case of India Trade Promotion .....

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This Appeal filed by the Revenue is directed against the order passed by the Ld. Commissioner of Income Tax (Exemption), New Delhi for the assessment year 2011-12. 2. The grounds raised in the Revenue s Appeal read as under:- 1. That on the facts and circumstances of the case and in law, the ld. CIT(A) has erred in holding that the activities of the assessee are charitable in nature and that assessee is eligible for exempton u/s. 11 of the Act by ignoring the fact that the activities of the ass .....

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e Ld. CIT(A) has erred in holding that the assesee is an educational institution within the meaning of Section 2(15) of the Income Tax Act, 1961 and in directing the AO to allow exemption as claimed by the Assessee. 4. That the appellant craves leave to add, to alter or amend any ground of appeal, raised above at the time of hearing. 3. The brief facts of the case are that Assessee filed Return of income on 17.8.2011 declaring total income at Rs. NIL after claiming application of income u/s. 11 .....

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ated 25.03.2014 passed u/s. 143(3) of the I.T. Act, 1961 has assessed total income of the assessee at ₹ 2,53,59,589/- by treating it as entire surplus as per Income & Expenditure Account which was taxed under section 13(8) of the Act and not allowed any benefit of Section 11 & 12 of the Act. 4. Aggrieved with the aforesaid order of the AO, the assessee filed appeal before the Ld. CIT(E) who vide impugned order dated 03.06.2015 has allowed the appeal of the assessee and held that ap .....

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he AO and reiterated the contentions raised in the grounds of appeal. It was submitted by the learned DR that the AO has rightly assessed the income vide his order dated 25.03.2014 passed u/s. 143(3) of the I.T. Act, 1961 at ₹ 2,53,59,589/- by treating it as entire surplus as per Income & Expenditure Account which was taxed under section 13(8) of the Act and also rightly not allowed the benefit of Section 11 & 12 of the Act to the assessee. Therefore, he submitted that the order of .....

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idered the order of the AO and the submissions of the assessee and I find considerable merit in the submissions of the assessee that the mischief of Proviso of section 2(15) is not apparently applicable as the assessee is not involved in any trade, commerce or business and as such there is no proper justification for denying the exemption u/s. 11(1). There is also merit in the submissions of the assessee that mere receipt of fees and charges etc. does not mean that the assessee is involved in an .....

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s held that mere receipt of fee or charge cannot be said that the assesse is involved in any trade, commerce or business and has accordingly allowed the relief to the ITPO case vide Para 58 and 59 of the order. 4.7 After considering all the facts and circumstances of the case, I am of the view that apparently the assessee is not apparently involved in any trade, commerce or business and as such the mischief of Proviso of Section 2(15) is not applicable as held by the Hon ble Tribunal during the .....

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roviso of section 2(15) mainly on the ground that the assessee was involved in trade, commerce or business as the assessee was receiving fees from the students but the appeal of the assessee was allowed by the ld. CIT(A)-XXI, (old), New Delhi vide his order dated 26.11.2012 and the Departmental Appeal has also been dismissed by the ITAT vide the order dated 16.5.2014 in ITA No. 907/Del/2013. There was apparently no scrutiny assessment during the AY 2010-11 and as such the return of the assessee .....

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the action of the AO by relying on the judgment of the Tribunal in assessee s own case for the AY 2009-10 and also relying upon the judgment of the Hon ble Jurisdictional High Court in the case of India Trade Promotion Organisation vs. DGIT(E) (2015) 371 ITR 333 (Delhi) and has rightly held that the proviso to section 2(15) is not applicable to the assessee as the assessee is not involved in any trade, commerce or business. For the sake of clarity, we are reproducing the relevant finding of the .....

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assessee have been called into question. ln earlier assessments uls 143(3) assesses activities have been held to be educational and charitable activities and benefits of sec 11 have been allowed to the assessee. Registration under sec 12A has not been withdrawn. It has been demonstrated by the assessee's counsel that nature of its educational activities, modalities of working, methodology of affiliation with CBSE and other Boards, fee structure, examination pattern remain same as in earlier .....

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