Income Tax Appellate Tribunal - Delhi
Ito (E), New Delhi vs Eklavya Foundation, New Delhi on 18 June, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "D" NEW DELHI
BEFORE SHRI G.D. AGRAWAL, PRESIDENT
&
SHRI AMIT SHUKLA, JUDICIAL MEMBER
I.T.A. No.5176/DEL/2015
Assessment Year: 2011-12
ITO(E), Trust Ward-1(1), vs. Eklavya Foundation,
New Delhi. B-2/12, Model Town,
New Delhi.
TAN/PAN: AAACT 2026Q
(Appellant) (Respondent)
Appellant by: Shri Amit Jain, Sr.D.R.
Respondent by: S/Shri Somil Aggarwal & Deepesh
Garg, Adv.
Date of hearing: 11 06 2018
Date of pronouncement: 18 06 2018
ORDER
PER AMIT SHUKLA, J.M.:
The aforesaid appeal has been filed by the Revenue against the impugned order dated 04.06.2015, passed by ld. CIT (Appeals)-XL, New Delhi for the Assessment Year 2011-
12. In the grounds of appeal following grounds have been taken:-
"On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in holding that the assessee society is involved in imparting education despite the fact that the assessee society was engaged in the activities of selling & publishing books which is in the nature of business, trade within the meaning of amended provisions of section 2(15) of the Income Tax Act, 1961."I.T.A. No.5176/Del/2015 2
2. At the outset, ld. counsel for the assessee submitted that this issue stands covered by the decision of the Tribunal in assessee's own case for the Assessment Years 2009-10 & 2010-11 in ITA No.4292 and 2870/Del/2014, order dated 18.09.2017. He further informed that the decision of the Tribunal has been affirmed by the Hon'ble High Court also in ITA No.232/2018, vide judgment and order dated 23.02.2018 and ITA No.267/2018, judgment and order dated 4.4.2018. Thus, in the light of the aforesaid judgment of Hon'ble Delhi High Court in assessee's own case, the appeal of the Revenue should be dismissed.
3. Learned DR also admitted that the issue involved in the aforesaid appeal is covered against the Revenue by the orders of the Tribunal and the Hon'ble High Court in the earlier years.
4. The facts in brief are that the assessee's society was registered as a charitable trust u/s.12A vide order dated 15.12.1984. The main objects of the Trust were to evolve and implement educational system for social change and general upliftment of Indian Society, to evolve a education methodology and curriculum for building up a scientific historical understanding of the structure of society and its I.T.A. No.5176/Del/2015 3 development and development problem involving skils, the spirit of inquiry and scientific temper in society to build up a people's science movement. During the course of assessment proceedings, Assessing Officer noted that assessee's receipts were from following activities:-
(a) Receipt of Rs.10,25,414.00 for teaching learning materials Eklavya.
(b) Receipt of Rs.15,07,245/- from Sandarbh.
(c) Receipt of Rs.71,52,674/- from sale of Dklavya Publications.
(d) Receipt of Rs.19,59774/- from sale of other books.
(e) Receipt of Rs.5,49,775/- from sale of teaching learning materials.
(f) Apart from this the assessee has earned income of Rs.4.13 lakhs from royalty and misc. receipts, and has also receipts of 4.15 crore being grants from Govt. and other organizations.
(g) The assessee had also been involved in various projects such as 'shiksha Protsahan Kendra; 'Striving to reach new heights' etc. which are under specific grants received from Govt./other entities."
5. Learned Assessing Officer observed that the assessee is claiming the activities as education which also includes publishing of books and magazine for children and related resource material and therefore, I.T.A. No.5176/Del/2015 4 the receipts from such activities does not fall within the ambit of educational purpose. After detailed discussion, he held that sale of books by the assessee is a business, and therefore, proviso to Section 2(15) is attracted. Accordingly, he denied the claim of exemption u/s.11 on sale of books and other publication.
6. Ld. CIT (A) held that similar matter had come up before the ld. CIT(A) in the Assessment Year 2009-10 and 2010-11, wherein exemption was denied to the assessee precisely on same grounds. Thus, following the earlier orders of the ld. CIT (A), he directed the Assessing Officer to allow the exemption u/s. 11(1) with all consequential benefits.
7. We find that this issue had been discussed in detail by the Tribunal in assessee's own case in the Assessment Years 2009-10 & 2010-11 wherein the Revenue's appeal were dismissed. The relevant observation and the finding of the Tribunal after considering the detailed observation of the ld. CIT(A) and CBDT circular no.11/2008 dated 19.12.2008 reads as under:-
"7 Keeping in v ie w the perf ect f inding given by the Ld. Firs t Appe llate Au thor ity on the issue invo lved in the appe al f iled by the depar tmen t, we are of the cons idered v ie w that the Ld. Firs t Appe llate Au thor ity has r igh tly concluded that E klavya I.T.A. No.5176/Del/2015 5 Foundation is eng aged in social cause witho ut any prof it mo tive and Asses s ing Of f icer alleg ed that it is no t the educational ins titu tion and is carrying out bus iness ac tiv ities and it is no t main taining separ ate bo oks of accounts, all these alleg ations are mis conce ived no tio ns of the A.O. Af ter go ing through the impugned order we f ind that the Ld. Firs t Appe llate Au thor ity has r ightly allo we d the appe al o f me assessee, af ter taking into cons ider ation the impugned order, ease laws cite d, paper book f iled. We f ind no inf irmity in the impugned order wh ich accep ted the conten tions of the assessee that Eklavya Socie ty is engaged in char itable purpose as def ined u/s 2(1 5) of the Act.
8. Af ter go ing through the rules and regulations of Eklavya Foundation it appe ars that the socie ty is pure ly engage d f or char itable purpose and the socie ty is also gr an ted reg is tratio n u/s 12A of the Act v ide order no. 1696 of DIT(E) dt. 15.12.1984 and no tif ied u/s 80G( 5) of the Ac t d t. 27lh Augus t, 2007.
We ex tr act the util izatio n of Socie ty's Inco me and Prope r ties to wards Aims and Obje cts as pe r the Me mor andum of Association (prov ided at page no.93 of assessee's paper book.
"V. Util izatio n of Socie ty's Inco me and Proper ties to wards Aims and Objects: -
All the inco mes, earnings, mov able and/or immo vable proper ties of the Socie ty shall be so lely util ised and applied to wards the pro mo tion of its aims and objec ts only as se t f or th in th is Me morandum of Associatio n and no po r tion thereof shall be paid or tr ansf erred direc tly or indirectly by way of div idends, bonus, prof it or in any manner whats oever to the present or pas t me mbers of the socie ty or to any person or persons making claims through any one or more of the present or the pas t me mbers. No me mber of the socie ty shall I.T.A. No.5176/Del/2015 6 have any personal claim on any mov able and/or immov able proper ty o]' the socie ty or make any prof it, whatsoever, by v ir tue of his /her me mbership. "
8.1 A perusal of the above Clause cle ar ly sho ws that the socie ty is so le ly e ngaged in char itable activ ities and is no t running with any prof it mo tive.
8.2. In the to tal ity of the f acts and cir cums tances of the case the appe al of the Revenue is dis misse d."
8. The aforesaid order of the Tribunal has now been confirmed by the Hon'ble High Court also by two separate orders (supra). Thus, consistent with the binding judicial precedent for the earlier years as confirmed by the Hon'ble Jurisdictional High Court, we do not find any merit in the grounds by the Revenue and the same is dismissed.
9. In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open Court on 18th June, 2018.
Sd/- Sd/-
[G.D. AGRAWAL] [AMIT SHUKLA]
PRESIDENT JUDICIAL MEMBER
DATED: 18th June, 2018
PKK:
I.T.A. No.5176/Del/2015 7
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR
Assistant Registrar
Date
1. Date of dictation 12.06.2018
2. Date on which the typed draft is 15.06.2018
placed before the dictating member
3. Date on which the typed draft is
placed before the Other Member
4. Date on which the approved draft
comes to the Sr.P.S./PS
5. Date on which the fair order is
placed before the Dictating Member
for pronouncement
6. Date on which the fair order comes
back to the Sr.P.S./PS
7. Date on which the final order is
uploaded on the website of ITAT
8. Date on which the file goes to the
Bench Clerk
9. Date on which the file goes to the
Head Clerk
10. The date on which the file goes to
the Assistant Registrar for signature on the order
11. Date of dispatch of the order