The Income Tax Appellate Tribunal (ITAT), Delhi bench held that the charitable trust engaged in activities that benefited for particular religion can claim exemption u/s 11 of the Income Tax Act,1961
This appellant revenue argued against the order of the Commissioner of Income Tax assuring eligibility of the assessee for exemption u/s 11 of Income Tax Act, in respect of an amount of Rs.3,16,43,346/- but assessed by the Assessing Officer as taxable income. The assessee is a trust, registered u/s 12A of Income Tax Act. The Assessing Officer denied the benefit of exemption u/s 11A read with section 12A of Income Tax Act and treated the assessee’s income, amounting to Rs.3,16,43,346/- as business income. On appeal, the Commissioner of Income Tax deleted the addition of Rs.3,16,43
The assessee contended that the benefit of exemption u/s 11 read with section 12A of Income Tax Act has been allowed by the Assessing Officer, on identical facts and circumstances, in assessment orders for Assessment Years 201213, 2013-14, 2015-16, 2017-18 and 2018-19. Since the registration u/s 12A of the Income Tax Act has remained in force continuously, the assessee’s claim of being a charitable trust has consistently been accepted by Revenue.
It was observed that registration of the assessee trust u/s 12A of Income Tax Act has remained in force continuously since the grant of registration vide order dated 01.05.2009 implying that the charitable character of the assessee has been accepted by Revenue continuously and the exemption u/s 11 read with section 12A of Income Tax Act has been never denied to the assessee. Further viewed that assessment orders have been passed for Assessment Year 2012-13, 2013-14, 2015-16, 2017-18 and 2018-19 by granting the benefit of exemption to the assessee u/s 11 read with section 12A of Income Tax Act.
The Tribunal consists of Shri Saktijit Dey, JM& Shri Anadee Nath Misshra, AM has held that section 11 would be applicable for a trust or an institution for religious purposes wherein certain activities can be termed as charitable activities for the benefit of any particular religious community or caste. The Tribunal upheld the impugned order of the CIT(A) and dismissed the revenue’s appeal. Sh. Akhilesh Kumar and Sh. Krishna appeared for the appellant and Sh. Ramdhan Meena appeared for the respondent.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
