ITO (Exemptions), Ward-1(2), New Delhi v. Indian Olympic Association, New Delhi

ITA 1651/DEL/2018 | 2013-2014
Pronouncement Date: 23-03-2021 | Result: Dismissed

Appeal Details

RSA Number 165120114 RSA 2018
Assessee PAN AAATI3010J
Bench Delhi
Appeal Number ITA 1651/DEL/2018
Duration Of Justice 3 year(s) 16 day(s)
Appellant ITO (Exemptions), Ward-1(2), New Delhi
Respondent Indian Olympic Association, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 23-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 23-03-2021
Assessment Year 2013-2014
Appeal Filed On 08-03-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI C BENCH NEW DELHI [THROUGH VIDEO CONFERENCING] BEFORE N.K. BILLAIYA ACCOUNTANT MEMBER AND BEFORE MS. SUCHITRA KAMBLE JUDICIAL MEMBER ITA NO.1651 /DEL/2018 [ASSESSMENT YEAR: 2013-14] INCOME TAX OFFICER (E) WARD-1(2) NEW DELHI M/S INDIAN OLYMPIC ASSOCIATION JAWAHARLAL NEHRU STADIUM LODHI ROAD NEW DELHI-110016 PAN - AAATI3010J APPELLANT RESPONDENT DEPARTMENT BY SH. MAKESH THAKUR SR. DR ASSESSEE BY SH. VIVEK MEH TA ADVOCATE DATE OF HEARING 23 .03.2021 DATE OF PRONOUNCEMENT 23 .03.2021 ORDER PER N.K. BILLAIYA ACCOUNTANT MEMBER THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)-40 DELHI DATED 22.12.2017 PERTAINING TO ASSESSMENT YEAR 2013-14. THE GRIEVANCE OF THE REVENUE READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY IGNORING THE FACT THAT THOUGH THE OBJECTS OF THE ASSESSEE SEEMS TO BE CHARITABLE BUT THE ACTIVITIES CARRIED OUT BY THE ASSESSEE ARE COMMERCIAL IN NATURE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY IGNORING THE FACT THAT WHEN DEDUCTION IS ALLOWED IN RESPECT OF CAPITAL EXPENDITURE NO DEPRECIATION IS ALLOWED ON THE SAME ASSETS AS THIS WILL LEAD TO DOUBLE DEDUCTION AS IN THIS CASE EXEMPTION U/S 11& 12 WAS NOT ALLOWED BY THE ASSESSING OFFICER. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY IGNORING THE FACT THAT WITHOUT PREJUDICE TO DENIAL OF EXEMPTION U/S 11 & 12 OF THE ACT TO THE ASSESSEE BY THE AO FOR INVOKING FIRST PROVISO TO SECTION 2(15) OF THE ACT PROVISIONS OF SECTION 11 12 & 13 OF THE ACT DO NOT ENVISAGE 2 ITA NO.1651/DEL/2018 SET OFF OF DEFICIT/EXCESS EXPENDITURE OF EARLIER ASSESSMENT YEARS AND THE INCOME OF CURRENT YEAR. 2. AT THE VERY OUTSET THE COUNSEL FOR THE ASSESSEE STATED THAT THE GRIEVANCE OF THE REVENUE IS WELL SETTLED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE ORDER OF THIS TRIBUNAL IN ITA NO. 1130/DEL/2016 ORDER DATED 19.07.2018 FOR ASSESSMENT YEAR 2011-12. THE COUNSEL FURTHER STATED THAT THIS ORDER OF THE TRIBUNAL HAS NOT BEEN INTERFERED BY THE HONBLE HIGH COURT OF DELHI. PER CONTRA THE DR COULD NOT BRING ANY DISTINGUISHING DECISION IN FAVOUR OF THE REVENUE. 3. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE DECISION OF THE TRIBUNAL (SUPRA). WE FIND FORCE IN THE CONTENTION OF THE COUNSEL. SIMILAR QUARREL WAS CONSIDERED AND DECIDED BY THIS TRIBUNAL IN ASSESSMENT YEAR 2011-12 (SUPRA) THE RELEVANT FINDINGS OF THE TRIBUNAL READS AS UNDER:- 15. WE HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. THE ONLY REASON FOR DENYING THE CLAIM OF EXEMPTION IS PROVISO TO SECTION 2(15) OF THE ACT. 16. SECTION 2(15) AS IT STOOD IN THE STATUTE AFTER THE REPEAL OF THE 1922 ACT READ AS UNDER: 'SECTION 2(15) - 'CHARITABLE PURPOSE' INCLUDES RELIEF OF THE POOR EDUCATION MEDICAL RELIEF AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY NOT INVOLVING THE CARRYING ON OF ANY ACTIVITY OF PROFIT. THIS PROVISION REMAINED UNCHANGED TILL ITS AMENDMENT BY THE FINANCE ACT 1983 AND WITH EFFECT FROM 1.4.1984 'NOT INVOLVING THE CARRYING ON OF ANY ACTIVITY OF PROFIT' WAS OMITTED. THE SECTION REMAINED UNCHANGED TILL IT WAS AMENDED BY THE FINANCE ACT 2008 W.E.F 1.4.2009. THIS MEANS THAT TILL THE AMENDMENT BROUGHT BY THE FINANCE ACT 2008 THE REVENUE WAS CONVINCED THAT THE ASSESSEE-TRUST WAS NOT CARRYING OUT ANY COMMERCIAL ACTIVITY IN THE GARB OF CHARITABLE PURPOSE. THE ACTIVITIES OF THE TRUST WERE GENUINE AND WERE FOR THE CHARITABLE PURPOSE.' 17. NOW LET US CONSIDER THE PROVISIONS OF SEC. 2(15) AS THEY STAND NOW. 'CHARITABLE PURPOSE' INCLUDES RELIEF OF THE POOR EDUCATION MEDICAL RELIEF [PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS FORESTS AND WILDLIFE) AND PRESERVATION OF 3 ITA NO.1651/DEL/2018 MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST]AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE IF IT INVOLVES THE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE COMMERCE OR BUSINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION OR RETENTION OF THE INCOME FROM SUCH ACTIVITY: [PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT APPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS (TWENTY FIVE LAKH RUPEES) OR LESS IN THE PREVIOUS YEAR]. 18. THIS PROVISO WAS ADDED ONLY IN RESPECT OF THE LAST LIMB OF THE PROVISIONS OF SEC. 2(15) WHICH RELATES TO THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE IF IT INVOLVES CARRYING ON OF AN ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS FOR A CESS OR FEE. THE SECOND LIMB IS NOT RELEVANT TO THE FACT UNDER CONSIDERATION. A CLOSE PERUSAL OF THE AFOREMENTIONED PROVISO SHOWS THAT THE SPIRIT OF THE SECTION IS SAME AS PER THE SECTION 2(15) AS IT STOOD PRIOR TO THE AMENDMENT BROUGHT BY FINANCE ACT 1983 AS MENTIONED HEREINABOVE. 19. ALL THAT HAS TO BE DECIDED NOW IS WHETHER THE SPONSORSHIP CONTRACT WITH SAMSUNG INDIA ELECTRONICS PVT. LTD CONSTITUTES CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS WHICH ACTIVITIES THE TRUST IS CARRYING ON PRIOR TO THE AMENDMENT BROUGHT BY FINANCE ACT 1983. 'GENERAL' MEANS PERTAINING TO WHOLE CLASS 'PUBLIC' MEANS THE BODY OF PEOPLE AT LARGE INCLUDING ANY CLASS OF THE PUBLIC 'UTILITY' MEANS USEFULNESS. 20. THEREFORE THE ADVANCEMENT OF ANY OBJECT OF BENEFIT TO THE PUBLIC OR A SECTION OF THE PUBLIC AS DISTINGUISHED FROM INDIVIDUAL AND GROUP OF INDIVIDUALS WOULD BE A CHARITABLE PURPOSE. AN OBJECT OF PUBLIC UTILITY NEED NOT BE AN OBJECT IN WHICH THE WHOLE OF THE PUBLIC IS INTERESTED. IT IS SUFFICIENT IF WELL-DEFINED SECTION OF THE PUBLIC BENEFITS BY THE OBJECTS WHICH MEANS THAT THE EXPRESSION 'OBJECT OF GENERAL PUBLIC UTILITY' IS NOT RESTRICTED TO OBJECTS BENEFICIAL TO THE WHOLE MANKIND. AN OBJECT BENEFICIAL TO A SECTION OF THE PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILITY. IN THE CASE OF CIT VS SWASTIK TRADING CO. LTD. 113 ITR 852 THE HON'BLE GUJARAT HIGH COURT HAS HELD THAT ESTABLISHING AND MAINTAINING GAUSHALAS AND PANJRAPOLE CONSTITUTES CHARITABLE PURPOSE. 21. THE HON'BLE FINANCE MINISTER WHILE PRESENTING THE FINANCE ACT 2008 IN HIS BUDGET SPEECH STATED AS FOLLOWS: 'CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR EDUCATION MEDICAL RELIEF AND ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY. THESE ACTIVITIES ARE TAX EXEMPT AS THEY SHOULD BE. HOWEVER SOME ENTITIES CARRYING ON REGULAR TRADE COMMERCE OR BUSINESS OR PROVIDING SERVICES IN RELATION TO ANY TRADE COMMERCE OR BUSINESS AND EARNING INCOMES HAVE SOUGHT TO CLAIM THAT THEIR PURPOSE WOULD ALSO FALL 4 ITA NO.1651/DEL/2018 UNDER 'CHARITABLE PURPOSE'. OBVIOUSLY THIS WAS NOT THE INTENTION OF THE PARLIAMENT AND HENCE I PROPOSE TO AMEND THE LAW TO EXCLUDE THE AFORESAID CASES. GENUINE CHARITABLE ORGANIZATIONS WILL NOT IN ANY WAY BE AFFECTED.' 22. THUS THE INTENTION OF THE HON'BLE FINANCE MINISTER WAS ONLY TO EXCLUDE FROM EXEMPTION ENTITIES CARRYING ON BUSINESS AND EARNING INCOMES FOR WHICH EXEMPTION WAS CLAIMED ON THE BASIS THAT THE PURPOSE WOULD FALL UNDER CHARITABLE PURPOSE. 23. THE CBDT CIRCULAR NO. 11/2008 DATED 19.12.2008 HAS EXPLAINED THE IMPLICATIONS ARISING FROM THE AMENDMENT BROUGHT TO THE PROVISIONS OF SEC 2(15) OF THE ACT. THE CBDT CLARIFIES THAT THE NEWLY INSERTED PROVISO TO SEC. 2(15) WILL NOT APPLY IN RESPECT OF THE FIRST THREE LIMBS OF SEC. 2(15) I.E. RELIEF OF THE POOR EDUCATION OR MEDICAL RELIEF. CONSEQUENTLY WHERE THE PURPOSE OF A TRUST OR INSTITUTION IS RELIEF OF THE POOR EDUCATION OR MEDICAL RELIEF IT WILL CONSTITUTE CHARITABLE PURPOSE EVEN IF IT IS INCIDENTALLY INVOLVES THE CARRYING ON OF COMMERCIAL ACTIVITY. THE BOARD FURTHER CLARIFIED THAT 'THE NEWLY INSERTED PROVISO TO SEC. 2(15) WILL APPLY ONLY TO ENTITIES WHOSE PURPOSE IS ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY I.E. 4TH LIMB OF THE DEFINITION OF THE CHARITABLE PURPOSE CONTAINED IN SEC. 2(15). THE CIRCULAR FURTHER CLARIFIED 'IN THE FINAL ANALYSIS WHETHER THE ASSESSEE HAS FOR ITS OBJECTS THE ADVANCEMENT OF ANY OTHER OBJECT OR GENERAL PUBLIC UTILITY IS A QUESTION OF FACT. IF SUCH ASSESSEE IS ENGAGED IN ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS OR RENDERS ANY SERVICE IN RELATION TO TRADE COMMERCE OR BUSINESS IT WOULD NOT BE ENTITLED TO CLAIM THAT ITS OBJECT IS CHARITABLE PURPOSE. IN SUCH A CASE THE OBJECT OF GENERAL PUBLIC UTILITY WILL BE ONLY A MASK OR DEVICE TO HIDE THE TRUE PURPOSE WHICH IS TRADE COMMERCE OR BUSINESS OR THE RENDERING OF ANY SERVICE IN RELATION TO TRADE COMMERCE OR BUSINESS. EACH CASE WOULD THEREFORE BE DECIDED ON ITS OWN FACTS AND NO GENERALIZATION IS POSSIBLE. 24. THUS EVEN THE CBDT DOES NOT LAY DOWN ANY GUIDELINES FOR DETERMINING WHETHER THE ENTITY IS CARRYING ON ANY COMMERCIAL ACTIVITY. EACH CASE WOULD THEREFORE TO BE DECIDED ON ITS OWN FACTS AND AS THE CBDT HAS CLARIFIED GENERALIZATION IS NOT POSSIBLE. 25. COMING BACK TO THE OBJECTS OF THE IMPUGNED ASSOCIATION THE FUNDAMENTAL OR DOMINANT FUNCTION OF THE ASSOCIATION IS TO REPRESENT THE COUNTRY IN INTERNATIONAL FORUMS. ASSOCIATIONS OF DIFFERENT DISCIPLINES IN SPORTS IN INDIA ARE MEMBERS/AFFILIATED TO IOA. IN FURTHERANCE OF ITS ACTIVITIES THE ASSOCIATION NOT ONLY REQUIRES GRANTS FROM THE GOVERNMENT BUT ON MANY OCCASIONS SPONSORSHIPS. THIS CANNOT BE AN ACTIVITY BY ITSELF AMOUNTING TO CARRYING ON OF ANY BUSINESS TRADE OR COMMERCE. THE IMPUGNED ASSOCIATION IS ENGAGED IN MULTI-LEVEL ACTIVITIES OF DIVERSE NATURE BUT THE PRIMARY AND DOMINANT ACTIVITY IS PROMOTING SPORTS ACTIVITIES NOT ONLY IN INDIA BUT ALSO IN INTERNATIONAL FORUM. THE IMPUGNED ASSOCIATION WOULD NOT LOSE ITS CHARACTER OF CHARITABLE PURPOSE MERELY BECAUSE SOME SPONSORSHIP WAS ACCEPTED. 26. IN THE CASE OF SOLE TRUSTEE LOKA SHIKSHANA TRUST V. COMMISSIONER OF INCOME- TAX 101 ITR 234 THE HON'BLE JUSTICE J. BAIG SPEAKING FOR THE APEX COURT THUS SAID THAT: 'IF THE PROFITS MUST NECESSARILY FEED A CHARITABLE PURPOSE UNDER THE TERMS OF THE TRUST HE MERE FACT THAT THE ACTIVITIES OF THE TRUST YIELD PROFIT WILL NOT ALTER THE CHARITABLE CHARACTER OF THE TRUST. THE TEST NOW IS MORE CLEARLY THAN IN THE PAST 5 ITA NO.1651/DEL/2018 THE GENUINENESS OF THE PURPOSE TESTED BY THE OBLIGATION CREATED TO SPEND THE MONEY EXCLUSIVELY OR ESSENTIALLY ON CHARITY'. 27. THE TEST FOR CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS AS MENTIONED IN THE FIRST PROVISO TO SEC. 2(15) WOULD BE SATISFIED IF PROFIT MAKING IS NOT THE REAL OBJECT. THE HON'BLE DELHI HIGH COURT IN THE CASE OF ICAI VS DIRECTOR GENERAL OF INCOME TAX (EXEM) 347 ITR 99 HAD THE OCCASION TO CONSIDER THE GRIEVANCE OF THE ICAI WHICH WAS DENIED EXEMPTION U/S. 10(23C)(IV) OF THE ACT BECAUSE IN THE OPINION OF THE DGIT (EXEM.) THE INSTITUTE WAS HOLDING COACHING CLASSES AND THEREFORE WAS NOT AN EDUCATIONAL INSTITUTION CONSEQUENTLY THE INSTITUTE WAS COVERED UNDER THE LAST LIMB OF CHARITABLE PURPOSE I.E. ADVANCE OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY IN THE LIGHT OF THE AMENDMENT BROUGHT O SEC. 2(15) OF THE ACT AS THE INSTITUTE WAS CHARGING FEES FOR CONDUCTING COACHING CLAUSES AND MAKING HUGE MONEY IN A SYSTEMATIC AND ORGANIZED MANNER. CONSIDERING THE FACTS IN THE LIGHT OF THE AMENDED PROVISIONS OF SEC. 2(15) THE HON'BLE DELHI HIGH COURT HELD THAT THE ORDER DENYING THE EXEMPTION WAS NOT VALID. 28. RELIANCE BY THE LD. DR ON VARIOUS DECISIONS TO BUTTRESS HIS SUBMISSIONS ARE MISPLACED IN AS MUCH AS THE DOMINANT ACTIVITY CANNOT BE BRUSHED ASIDE LIGHTLY EVEN AFTER THE AMENDMENT. 26. AFTER CONSIDERING THE ENTIRE FACTS IN TOTALITY IN THE LIGHT OF DISCUSSION HEREINABOVE AND ALSO DRAWING SUPPORT FROM THE SPEECH OF THE FINANCE MINISTER AND SUBSEQUENT CLARIFICATION ISSUED BY THE CBDT WITHIN THE FRAMEWORK OF AMENDED PROVISIONS OF SECTION 2(15) OF THE ACT IN OUR CONSIDERED OPINION THERE WAS NO MATERIAL WHICH MAY SUGGEST THAT THE ASSESSEE ASSOCIATION WAS CONDUCTING ITS AFFAIRS SOLELY ON COMMERCIAL LINES WITH THE MOTIVE TO EARN PROFIT. THERE IS ALSO NO MATERIAL WHICH COULD SUGGEST THAT THE ASSESSEE ASSOCIATION HAS DEVIATED FROM ITS OBJECTS WHICH IT HAS BEEN PURSUING SINCE PAST MANY DECADES. IN OUR HUMBLE OPINION AND UNDERSTANDING OF LAW PROVISO TO SECTION 2(15) OF THE ACT IS NOT APPLICABLE TO THE FACTS OF THE CASE AND THE ASSESSEE-ASSOCIATION DESERVES BENEFIT U/S 11/12 OF THE ACT. WE THEREFORE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE FIRST APPELLATE AUTHORITY. GROUND NO. 1 IS ACCORDINGLY DISMISSED. 27. NEXT GRIEVANCE RELATES TO ALLOWANCE OF DEPRECIATION. 28. THIS ISSUE IS NOW WELL SETTLED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF RAJASTHAN AND GUJARAT CHARITABLE FOUNDATION 402 ITR 441 WHEREIN THE HON'BLE SUPREME COURT HAS HELD THAT EVEN THOUGH THE EXPENDITURE INCURRED FOR ACQUISITION OF CAPITAL ASSETS WAS TREATED AS APPLICATION OF INCOME FOR CHARITABLE PURPOSES U/S 11A(1) OF THE ACT YET DEPRECIATION WOULD BE ALLOWED ON ASSETS SO PURCHASED. GROUND NO. 2 IS ACCORDINGLY DISMISSED. 29. GRIEVANCE RAISED VIDE GROUND NO. 3 IS RELATED TO AND CONSEQUENTIAL TO THE GRIEVANCE RAISED VIDE GROUND NO. 1. 30. SINCE VIDE GROUND NO. 1 WE HAVE DIRECTED THE AO TO ALLOW BENEFIT OF EXEMPTION U/S 11/12 OF THE ACT THE AO IS DIRECTED ACCORDINGLY. 31. IN THE RESULT THE APPEAL OF THE REVENUE IN ITA NO. 1130/DEL/2016 IS DISMISSED. 6 ITA NO.1651/DEL/2018 4. THIS ORDER OF THE TRIBUNAL WAS ASSAILED BY THE REVENUE BEFORE THE HONBLE HIGH COURT OF DELHI AND THE HONBLE HIGH COURT VIDE ORDER DATED 26.11.2019 HELD AS UNDER:- 1. THE REVENUE HAS PREFERRED THE PRESENT APPEAL TO ASSAIL THE ORDER DATED 19.07.2018 PASSED BY THE ITAT DELHI B BENCH IN ITA 1130/DEL/2016 RELATING TO ASSESSMENT YEAR 2011-12. THE ISSUE BEFORE THE TRIBUNAL WAS WHETHER THE RESPONDENT ASSESSEE WAS NOT ENTITLED TO BE TREATED AS A CHARITABLE INSTITUTION UNDER SECTION 2(15) BY VIRTUE OF THE PROVISO TO THE SAID SECTION. THE TRIBUNAL HAS HELD IN FAVOUR OF THE RESPONDENT ASSESSEE. THE ISSUE RAISED IN THE PRESENT APPEAL WAS RAISED IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-10 IN ITA 110/2019 AND THIS COURT VIDE ORDER DATED 04.02.2019 HELD THAT NO SUBSTANTIAL QUESTION OF LAW ARISES FOR CONSIDERATION. 2. FOLLOWING THE DECISION IN ITA 110/2019 WE DISMISS THIS APPEAL SINCE NO SUBSTANTIAL QUESTION OF LAW ARISES. 5. VIDE ORDER DATED 04.02.2019 IN ITA NO. 110/2019 THE HONBLE HIGH COURT OF DELHI HELD AS UNDER:- THE FIRST QUESTION OF LAW URGED BY THE REVENUE IS WITH RESPECT TO THE ADMISSIBILITY OF SECTIONS 11 AND 12 OF THE INCOME TAX ACT; THE ASSESSING OFFICER (AO) HAD RULED THAT THE ASSESSEE WAS DISENTITLED TO THE EXEMPTIONS. THE CIT(A) AND THE ITAT HOWEVER REVERSED THE DECISION AND RELIED UPON THE DECISION OF THIS COURT IN INDIA TRADE PROMOTION ORGANIZATION VS. DGIT (2015) 371 ITR 333. THE SECOND QUESTION URGED IS WITH RESPECT TO THE ALLEGED DOUBLE BENEFIT CLAIMED BY THE ASSESSEE I.E. TOWARDS DEPRECIATION REPORTED IN RESPECT OF THE ASSETS ACQUIRED OUT OF PREVIOUS EXEMPT INCOME. ON THIS TOO THE TRIBUNAL RELIED UPON A BINDING DECISION OF THE SUPREME COURT IN CIT VS. RAJASTHAN & GUJARAT CHARITABLE FOUNDATION (2018) 402 ITR 441. 6. RESPECTFULLY FOLLOWING THE AFOREMENTIONED DECISIONS WHICH ARE IN FAVOUR OF THE ASSESSEE WE DO NOT FIND ANY MERIT IN THIS APPEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 23//03/2021. SD/- SD/- [SUCHITRA KAMBLE] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DELHI; DATED: 23/03/2021. SH 7 ITA NO.1651/DEL/2018 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT NEW DELHI