CIT (Exemptions) v. Society of Indian Automobile Manufacturers

Case Laws Analysis
REFERRED India Trade Promotion Organization v. Director General IT (Ecemptions) 2015 TaxPub(DT) 0623 (Del-HC)

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The Tax Publishers2020 TaxPub(DT) 4205 (SC) : (2020) 272 TAXMAN 0099

INCOME TAX ACT, 1961

Section 261 Section 2(15) Sections 11 & 12

Where the department preferred SLP to appeal against the Judgment of Delhi High Court in CIT (Exemptions) v. Society of Indian Automobile Manufacturers (ITA No. 857 of 2016 & C.M. Appl. No. 44601 of 2016), whereby the High Court held that in case of India Trade Promotion Organization v. DGIT [Exemptions) (2015) 371 ITR 333 (Del-HC) : 2015 TaxPub(DT) 623 (Del-HC) and Institution of Chartered Accountants of India v. DGIT (Exemptions) (2013) 217 Taxman 15 (Del-HC) : 2013) 358 ITR 91 (Del-HC) : 013 TaxPub(DT) 2666 (Del-HC), it was held that mere circumstance of collection of amounts towards fees for conducting seminars and other like activity did not result in assessee losing its essential character of being established for charitable purposes. Following the same, issue was decided in favour of assessee, the Supreme Court dismissed the SLP as withdrawn due to low tax effect, however, leaving question(s) of law open.

Appeal (Supreme Court) - Special leave petition - Charitable trust - Exemption

Department preferred SLP to appeal against the judgment of Delhi High Court in CIT (Exemptions) v. Society of Indian Automobile Manufacturers (ITA No. 857 of 2016 & C.M. Appl. No. 44601 of 2016), whereby the High Court held that in case of India Trade Promotion Organization v. DGIT [Exemptions) (2015) 371 ITR 333 (Del-HC) : 2015 TaxPub(DT) 623 (Del-HC) and Institution of Chartered Accountants of India v. DGIT (Exemptions) (2013) 217 Taxman 15 (Del-HC) : 2013) 358 ITR 91 (Del-HC) : 013 TaxPub(DT) 2666 (Del-HC), it was held that mere circumstance of collection of amounts towards fees for conducting seminars and other like activity did not result in assessee losing its essential character of being established for charitable purposes. Following the same issue was decided in favour of assessee. Held: Counsel for the petitioner, on instructions issued by the Department of Revenue, Ministry of Finance vide F.No. 390/Misc./116/2017-JC, dated 22-8-2019, sought permission to withdraw this special leave petition along with pending applications therein due to low tax effect. Permission was granted, subject to just exceptions. The special leave petition and pending applications were dismissed as withdrawn.