The case ITA 8/DEL/2019 involved the appellant World Institution Development Programme (WIDP), New Delhi, contesting against the Income Tax Officer (Exemption), Ward-2(3), New Delhi. The appeal pertained to the assessment year 2014-15 and was filed on January 1, 2019. The final order was pronounced on September 17, 2019.
World Institution Development Programme, a trust registered under Sections 12AA and 80G(5)(vi) of the Income Tax Act, 1961, filed its return of income on September 30, 2014, declaring nil income. The main activity of the trust involved providing educational services, including preparation and publication of study materials, conducting classes, and helping with exams.
The appeal was heard by Shri Amit Shukla, Judicial Member, and Shri Prashant Maharishi, Accountant Member, of the Delhi ‘F’ Bench of the Income Tax Appellate Tribunal (ITAT). The appellant was represented by Shri Kapil Goel, Advocate, while the respondent was represented by Shri Surender Pal, Senior Departmental Representative.
The appellant’s counsel argued that WIDP’s activities fell within the definition of ‘education’ under Section 2(15) of the Act, as it was engaged in preparing and providing educational materials, conducting classes, and aiding in examinations. The appellant also highlighted that similar activities were accepted as educational in the previous assessment years 2012-13 and 2013-14.
Moreover, the counsel emphasized that the AO’s decision contradicted the principles of consistency, as there was no change in the appellant’s activities or objectives. The appellant also pointed out that the AO and CIT(A) exceeded their jurisdiction by indirectly attempting to revoke the appellant’s registration under Sections 12A/12AA.
The respondent’s representative supported the findings of the lower authorities, stating that the appellant’s activities were more akin to business activities and did not qualify for exemption under Sections 11 and 12 of the Act.
After hearing both parties and reviewing the records, the tribunal observed that WIDP was indeed engaged in educational activities. The tribunal noted that the appellant’s primary activities included developing and providing study materials, conducting classes, and aiding in examinations for the Global Open University, Nagaland, as per their Memorandum of Understanding (MOU).
The tribunal also acknowledged that similar activities were accepted as educational in the assessment years 2012-13 and 2013-14. Therefore, the AO’s and CIT(A)’s decisions to treat these activities as business activities and deny exemption under Sections 11 and 12 were inconsistent and not justified.
The tribunal referred to various judicial precedents supporting the appellant’s case, including the decision of the Hon’ble Delhi High Court in the case of Delhi Public School Society, which recognized the educational nature of similar activities.
The tribunal concluded that the appellant’s activities were indeed educational and not business in nature. Consequently, the tribunal reversed the orders of the lower authorities and allowed the appeal, granting the appellant the exemption under Sections 11 and 12 of the Income Tax Act, 1961.
The final order in ITA 8/DEL/2019 was pronounced on September 17, 2019, with the appeal allowed in favor of World Institution Development Programme. This decision reaffirmed the educational nature of the appellant’s activities and granted the necessary tax exemptions.
Educational Activity Exemption: World Institution Development Programme – ITA 8/DEL/2019
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