Pr. Commissioner of Income Tax (Exemptions) Delhi vs Servants of People Society

Court

Supreme Court of India

Date

31 January 2023

Case No.

Civil Appeal No(S). 614 of 2023

Result

Partly allowed

Bench

S. Ravindra Bhat, Dipankar Datta

Citation

[2023] 1 S.C.R. 865 : 2023 INSC 88

Headnote

Income Tax Act, 1961: ss. 2(15) and 11(1) – Charitable trust – Benefit of exemption – Entitlement to – On facts, assessee-registered society founded in 1921 for nation building, general awareness and welfare of the people – Assessee society also managing and running a printing press and a newspaper – Claim of benefit of exemption – Denial by the assessing officer invoking the proviso to s. 2(15) on the ground that the assessee is involved in trade, commerce or business – However, the Appellate Commissioner allowed the plea of the assessee – Said order upheld by the tribunal and the High Court – On appeal, held: Appellate Commissioner, the ITAT and the High Court merely followed the judgment of the High Court in India Trade Promotion Organisation case – However, the law with regard to interpretation of s. 2 (15) has undergone a change, due to the decision in Ahmedabad Urban Development Authority Case – Matter to be re-examined, and the question as to whether the amounts received by the assessee qualify for exemption, u/s. 2 (15) or s. 11 to be gone into afresh – Assessing Officer to examine the documents and relevant papers and render fresh findings on the issue. India Trade Promotion Organisation v. Director General of Income Tax (Exemption) 371 ITR (Del) 333 –

referred to.

CIT v. Ahmedabad Urban Development Authority 2022 SCC Online SC 1461 – relied on.

The Judgment of the Court was delivered by S. RAVINDRA BHAT, J. 1. Special leave granted. Mr. D. Mahesh Babu waives notice of appeal on behalf of the sole respondent [hereafter called “the assessee”]. The appeal is heard finally. 2. The Commissioner of Income Tax (hereafter referred to “revenue”) is aggrieved by the impugned judgment and order of the Delhi High court1. The impugned judgment upheld the decision of the Income Tax Appellate Tribunal (“ITAT”) which affirmed the views expressed by the Commissioner of Income Tax (Appeals) (hereafter called “Appellate Commissioner”). The Appellate

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