National Solar Energy Federation of India (NSEFI) Vs ITO (ITAT Delhi)
The appeal before the ITAT Delhi concerned the denial of exemption under sections 11 and 12 of the Income Tax Act, 1961 for Assessment Year 2017–18. The assessee, a society registered under section 12AA, had filed its return declaring nil income. During the year, it received voluntary contributions amounting to ₹78,63,150, which were treated by the Assessing Officer as “annual membership fees in lieu of services” and not as charitable donations. On this basis, the Assessing Officer applied the proviso to section 2(15), denied exemption under sections 11 and 12, rejected accumulation under section 11(2), and assessed taxable income at ₹48,67,980.
Before the Tribunal, the assessee contended that it was engaged in charitable activities relating to the development and promotion of solar energy, as clearly reflected in its trust deed. The objects included organising seminars, workshops, policy advocacy, research, and awareness programmes in the public interest. It was submitted that the amount of ₹78,63,150 comprised voluntary contributions from various entities, with wide variation in amounts and timing, which was inconsistent with the concept of uniform or fixed membership fees. There was no contractual obligation, quid pro quo, or service rendered to contributors in exchange for these amounts.
