Case Law Details
CIT (Exemptions) Vs Hamdrd National Foundation (India) (Delhi High Court)
1. Present batch of appeals has been filed raising a common question of law, namely, as to whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal (for short ‘Tribunal’) was correct in allowing the appeal of the assessee ignoring the fact that the assessee has paid most of the scholarship amount to the students of a particular religious community which is a clear violation of Section 13(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. The relevant portion of the impugned order passed by the Tribunal is reproduced hereinbelow:-
“37. As far as the question of scholarship is concerned, in the Assessment Year 2010-11 itself, the assessee had challenged the same and the Ld. CIT(A) in his order dated 6/3/2014 held that the benefit of scholarship to the poor and needy student was not confined to the students of a particular community and a perusal of the list submitted by the assessee shows that the benefit is granted to the students from all the communities without any discrimination. Such a finding of Ld. CIT(A) was accepted by the Revenue and while preferring ITA No. 3403/Del/2014 in respect of the Assessment Year 2010-11, the Revenue did not challenge this finding of the Ld. CIT(A).
38. When a similar question had arisen for the Assessment Year 2011- 12 before the Ld. CIT(A), Ld. CIT(A) observed that the facts are identical to the Assessment Year 2010-11 in which a factual finding was given to the effect that the scholarships were not restricted to a particular religious community and there is no violation of the provisions of section 13(1)(b) of the Act in this year also.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
