Sec 2(15) of the Income Tax Act cannot be invoked to Deny Exemption Benefits to a Trust: ITAT Delhi [Read Order]

State Govt Employees - Sports Goods - India - IGST - Taxscan

In a recent ruling, the Delhi bench of the Income Tax Appellate Tribunal (ITAT) observed that the AO cannot invoke section 2(15) of the Income Tax Act to deny the exemption benefits to a Trust provided under section 11 and 12 of the Income Tax Act.

The assessee-Trust, Society For Participatory Research In Asia, urged that the tax benefits given to the Trust cannot be denied as per the decision of the Tribunal, in the own case of the assessee-Trust wherein it was held that“invocation of proviso to section 2(15) of the Act to deny claim of exemption under section 11 and 12 of the Act is not justified.”

Referring to the above judgment, the bench noted that the issue had been squarely covered by the decision which has been upheld by the Hon’ble Jurisdictional High Court vide its order dated 25.11.2016. The appeal of the assessee were allowed accordingly.

Read the full text of the order below.