ACIT Vs Indian Evangelical Team (ITAT Delhi)
ITAT held that provisions of section 13(1)(b) are attracted in case of charitable societies only and not in case of religious societies and hence there is no violation of section 13(1)(b) as alleged by the Assessing Officer, since this assessee is religious society.
FULL TEXT OF THE ORDER OF ITAT DELHI
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by the revenue against the orders of the ld. CIT(A)-40 , New Delhi dated 14.12.2017.
2. Since, the issues involved in both the appeals are common,they were heard
3. The assessee had been allowed exemption u/ s 11 of the Income Tax Act, 1961 from the very beginning and the same was allowed for the assessment years 1989-90 to 1991-92, 1995-96 to 2004-05 and 2006-07. Exemption u/s 11 was denied for the first time in the assessment year 1992-93 mainly on the ground that the society was not a religious society and there was a violation of section 13(1)(b). The assessee was in appeal against the order of the Assessing Officer and it was submitted that the assessee is a religious society and the mischief of the provision of section 13(1)(b) was not attracted. The ld. CIT(A)- XVI, New Delhi in appeal No. 28/1995-96 allowed the appeal of the assessee mainly on the ground that the assessee has been allowed exemption for all the preceding years and there was no material change in the activities of the assessee and the mischief of the provision of section 13 (1)(b) was not attracted as the assessee was a religious society. The ld. CIT (A) also relied on the case of CIT vs. Barkate Saifiyah Society (1995) 213 ITR 492 (Guj.) vide order dated 02. 08.1995. The department filed an appeal against the order of the Ld. CIT(A) but the Tribunal dismissed the departmental appeal vide appellate order in ITA No.6323/Del/1995 dated 09.04.2001.
4. The Assessing Officer has followed his earlier orders and in the year under consideration, exemption has been denied to the assessee mainly on the ground that the assessee is a charitable society and there was a violation of Section 13(1)(b) and the AO has relied on the case laws of State of Kerala M.P. Shanti Verma Jain, 231 ITR 787 (SC) 1998 and Ghulam Mohidin Trust Vs CIT 248 ITR 587 (J& K) 2001.
5. The CIT (A) owing to the orders for assessment years 2007-08 (Appeal No. 37/2009-10), assessment year 2008-09 (Appeal No. 88/2010-11), assessment year 2009- 10 (Appeal No. 196/2011-12), assessment year 2010-11 (Appeal No. 299/2013- 14) and assessment year 2011-12 (Appeal No. 570/2013-14), assessment year 2012-13 (Appeal No. 6/2015-16) and to the
