ITAT grants section 11 exemptions to charitable trust on the principle of consistency

DCIT (Exemption) Vs Yug Nirman Yojna Vistar Trust (ITAT Delhi)

Facts- The assessee is a trust, registered u/s 12A of Income Tax Act. Perusal of assessment order dated 29.12.2016 passed by the Assessing Officer u/s 143(3) of Income Tax Act; shows that registration u/s 12A was granted to the assessee by order dated 01.05.2009 of Ld. CIT(A), Agra. However, the Assessing Officer, vide aforesaid assessment order dated 29.12.2016, denied benefit of exemption u/s 11A read with section 12A of Income Tax Act and treated the assessee’s income, amounting to Rs.3,16,43,346/- as business income instead of exempt income as claimed by the assessee. Assessee filed appeal before the Ld. Commissioner of Income Tax (Appeal)-2, Agara (“Ld. CIT(A)” for short). Vide impugned appellate order dated 28.09.2018, the Ld. CIT(A) allowed the assessee’s appeal; deleting the aforesaid addition of Rs.3,16,43,346/-; by holding that the assessee was eligible to claim exemption under provisions of section 11 of Income Tax Act.

Conclusion- It is not in dispute that registration of the assessee trust u/s 12A of Income Tax Act has remained in force continuously since the grant of registration vide aforesaid order dated 01.05.2009 implying that charitable character of the assessee has been accepted by Revenue continuously. It is not in dispute that exemption u/s 11 read with section 12A of Income Tax Act has been never denied to the assessee, in identical facts and circumstances, except in Assessment Year 2014-15 (to which this appeal pertains). It is also not in dispute that assessment orders have been passed for Assessment Year 2012-13, 2013-14, 2015-16, 2017-18 and 2018-19 granting the benefit of exemption to the assessee u/s 11 read with section 12A of Income Tax Act. We are of the view that the impugned order of the Ld. CIT(A) is a just and fair order in accordance with law, having regard to facts and circumstances of the case. Neither side has brought any materials for our consideration to persuade us to interfere with the impugned order of the Ld. CIT(A).

Held that the assessee’s claim of being a charitable trust has consistently been accepted by Revenue.

FULL TEXT OF THE ORDER OF ITAT DELHI

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