In ITA No. 1402/DEL/2020, Bharat Sushamachar Samiti faced challenges from DCIT, Exemption Circle, Ghaziabad, regarding its eligibility for exemptions under Section 11 of the Income Tax Act for the assessment year 2016-17. This case is coupled with ITA No. 1401/DEL/2020 for the assessment year 2014-15, highlighting ongoing legal disputes over the organization’s exempt status.
The primary issue in dispute was whether the activities carried out by Bharat Sushamachar Samiti were within the ambit of ‘charitable purposes’ as defined under Section 2(15) of the IT Act. The assessing officer initially denied the exemption, leading to appeals that reached the Income Tax Appellate Tribunal (ITAT).
The tribunal examined whether the society’s activities, particularly its educational initiatives in Uttarakhand and Western UP, qualified as charitable. The assessing officer had scrutinized the society’s financials and objectives, questioning the charitable nature due to specific religious undertones suggested by the society’s online representations.
However, the CIT (Appeals) and subsequently the ITAT found that the society’s educational activities did not exclusively benefit a particular religious community and were in line with its stated educational objectives. The society’s defense highlighted its secular educational framework and its affiliation with recognized educational bodies, which supported its claim for exemption.
The ITAT upheld the CIT (Appeals)’ decisions for both assessment years, emphasizing the secular and educational nature of the activities conducted by Bharat Sushamachar Samiti. It rejected the revenue’s appeal, affirming the society’s right to exemption under Section 11 of the IT Act.
This decision underscores the importance of clear and compliant operational objectives for educational societies seeking tax exemptions. It clarifies the application of Section 2(15) concerning charitable purposes and sets a precedent for similar cases involving educational activities with religious affiliations.
The tribunal’s decision in ITA No. 1402/DEL/2020 reaffirms the eligibility of Bharat Sushamachar Samiti for tax exemptions, contributing to broader legal interpretations of what constitutes charitable activities under the IT Act.
Detailed Examination of ITA No. 1402/DEL/2020: DCIT vs. Bharat Sushamachar Samiti
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