Case Law Details
Centre for e-Governance Vs DCIT (ITAT Bangalore)
Income Tax Appellate Tribunal (ITAT) in Bangalore delivered a ruling on a noteworthy case: Centre for e-Governance Vs DCIT. The primary issue in contention was the denial of exemption under section 11 of the Income Tax Act, 1961.
At the heart of the dispute is the denial of section 11 exemption to the Centre for e-Governance, a nodal agency established by the Government of Karnataka. The centre claimed this exemption while declaring ‘Nil’ total income for the Assessment Year 2018-19. However, upon scrutiny, the AO denied the exemption and the CIT(A) later confirmed this decision.
Notably, the assessee argued that being a government-established agency, it should be covered by the judgment of the ACIT(E) Vs. Ahmedabad Urban Development Authority case. The assessee also contended that its gross receipts from potential commercial activities were below the threshold limit defined under section 2(15) of the Act.
Interestingly, the tribunal, having acknowledged the recent Supreme Court judgement regarding the interpretation of sections 2(15) and 11 of the Act, concluded that the matter needs to be revisited by the CIT(A). Furthermore, other contentions raised by the assessee, like their status under article 289 of the Constitution and the nature of their receipts, also merit further consideration.
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