Case Law Details
CIT Vs GS1 India (Delhi High Court)
Introduction: In a significant ruling, the Delhi High Court denied GS1 India’s tax exemption claim under section 2(15) of the Income Tax Act, stating that the services provided by the organization were primarily for the benefit of trade and business.
Analysis: The dispute arose concerning the Assessment Year (AY) 2013-14 when GS1 India claimed a tax exemption under section 2(15) of the Income Tax Act. The appellant, the revenue authority, contested this claim, and the matter reached the Delhi High Court.
Mr Rishabh Sancheti, representing GS1 India, did not oppose the appeal, mainly due to the precedent set by the Supreme Court in a similar case. In Assistant Commissioner of Income Tax (Exemptions) v. Ahmedabad Urban Development Authority, the Supreme Court ruled that despite GS1 India’s involvement in advancing public utility, the nature of their services—benefiting trade and business—did not qualify for exemption.
The verdict signifies a key interpretation of Section 2(15) of the Income Tax Act. Despite GS1’s contribution to the public utility, its high receipt generation from services rendered to businesses effectively nullified the exemption claim.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
