Income Tax Appellate Tribunal - Delhi
Dlf Qutub Enclave Complex Educational ... vs Department Of Income Tax on 20 August, 2014
INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "B": NEW DELHI
BEFORE SHRI G. D. AGARWAL, HON'BLE VICE PRESIDENT
AND
SHRI A. T. VARKEY, JUDICIAL MEMBER
ITA No. 57/Del/2013
(Assessment Year: 2009-10)
ITO(E), DLF Qutub Enclave Complex
Trust Ward-Iii Educational Charitable Trust,
Laxmi Nagar Distt. Vs. 9th Floor, DLF Centre,
Centre, Delhi Sansad Marg,
New Delhi
PAN:AAATD082D
(Appellant) (Respondent)
Appellant by : Sudha Kumari, CIT DR
Respondent by : R. S. Singhvi, CA
ORDER
PER A. T. VARKEY, JUDICIAL MEMBER
This appeal preferred by the revenue arises from the order of the ld CIT(A)- XXI, New Delhi dated 23.10.2012 relates to Assessment Year 2009-10.
2. The effective grounds raised by the Revenue are as under:-
"1. On the facts and in the circumstances of the case and in law, the ld CIT(A) has erred in holding that the activities of the assessee trust are charitable in nature and entitled to exemption of income u/s 11 and 12 of the Act particularly when the assessee‟s trust is constructing and letting out the properties and earning income from the rent year after and making huge profits which are being applied for constructing and letting out the properties.
2. On the facts and in the circumstances of the case and in law, the ld CIT(A) has erred in holding that the activities of the assessee trust fall within the expression of „education‟ read with definition of „charitable purpose‟ as per section 2(15) of the Income Tax Act, 1961 when none of its activities can be categorized as providing education either directly or indirectly."
3. Apropos sole ground regarding eligibility to claim exemption u/s 11 and 12 of the Income Tax Act, 1961 (herein after 'the Act').
4. We find that this issue before us is no longer res-integra. The co-ordinate Bench in the case of the assessee, for Assessment Year 1994-95 has held that the Page No. 2 assessee is entitled to exemption u/s 11 & 12 of the Act. It was held that letting out the school building was aimed at providing assistance in imparting education, which is undisputably for a charitable object. It was held therein as under:-
"13. In view of the above decision, the assessee trust was justified in letting out the school building to the other educational trust and, therefore, it can be said that the leasing activity as well as the income earned through such activity was in furtherance of the objects and ideals of the trust. The leasing activity was also aimed at providing assistance in imparting educational which was undisputedly a charitable object. Thus, the finds of the ld CIT(A) are to be upheld from the this view point also.
14. There is another aspect of the matter. As pointed out by the ld. counsel for the assessee, the accumulation was allowed under section 11 (2) to the assessee in earlier years and in subsequent years, which' is evident from the chart filed by the assessee for assessment years 1990-91 to 1998-99. On the basis of this chart, the argument of assessee s counsel was that as per the rule of consistency also, the claim of the assessee deserves to be allowed. In the case of Director of Income Tax vs. lovely Bal Shiksha Parisad reported in 266 ITR 349, following the decision of apex Court in the case of Radhasoami Satsang vs. CIT 193 ITR 321, it was held that if there was no change in the nature of activities and the assessee was granted exemption under section 10(22) of the Income Tax Act not only in respect of earlier years but subsequent years also, the assessee was entitled to claim exemption in assessment year under consideration i.e. assessment year 1991-92. In view of title of consistency also, the benefit of section 11 should be allowed to the assessee as it was being allowed in earlier years and as the same has also been allowed in subsequent assessment years.
15. In view of the above, we do not find force in the grounds of appeal taken by the revenue and reject the same.
16. In the result, the appeal of the revenue is dismissed."
5. The aforesaid view was reiterated in the case of the assessee for 2002-03 by an order dated 10th July 2009 and it was held as under:-
"11. We have heard both the parties. We find that this issue is covered by the decision of IT AT in assessee's own case for assessment year 1994- 05 in ITA. No. 1386/Del of 1998 dated 28th July, 2006 wherein it has been held that the assessee trust was justified letting out the school building to other educational trust and, therefore, it can be said that leasing activity as well as income earned through such activity was in furtherance of objects and ideals of the trust. The leasing activity was also aimed at providing assistance imparting education, which undisputedly a charitable object. It was also noted by the Bedi the accumulation was allowed under section 11 (2) to the assessee in Page No. 3 earlier JI8S and in subsequent years. Therefore the assessee was entitled for benefit of section 11 the Act. Since the issue is covered by the decision of ITA T in assessee's own case respectfully following the same it is held that the assessee is entitled for exemption u/s 11of the Act."
6. In the light of the above decision of the co-ordinate bench in assessee's own case and since the Revenue was unable to bring to our notice any change in facts and circumstances in the case on hand, we respectfully follow the order the co-ordinate bench and uphold the order of the ld CIT(A) allowing the claim of exemption u/s 11 and 12 of the Act.
7. In the result the appeal is dismissed.
Order pronounced in the open court on 20.08.2014.
-Sd/- -Sd/-
(G. D. AGARWAL) (A. T. VARKEY)
VIDE PRESIDENT JUDICIAL MEMBER
Dated:20 /08/2014
A K Keot
Copy forwarded to
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
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ASSISTANT REGISTRAR
ITAT, New Delhi