IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 620/2012
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DIRECTOR OF INCOME TAX ..... Appellant
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Through : Mr. Abhishek Maratha, sr. standing counsel with Ms. Anshul
Sharma, Advocate.
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versus
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INDIAN NATIONAL THEATRE TRUST ..... Respondent
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Through Mr. V P Gupta and Mr. Basant Kumar, Advs.
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CORAM:
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HON'BLE MR. JUSTICE S. RAVINDRA BHAT
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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19.11.2012
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The revenue claims to be aggrieved by an order dated 5.8.2011 of
the ITAT in ITA No.5659/Del./2010 and urges that the respondent-assessee
does not carry on any charitable activity so as to be entitled to the
exemption under Section 11 of the Income Tax Act, 1961.
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2. The brief facts are that the assessee claimed and was granted
exemption under Section 11; its main objects are the promotion of
artistic and cultural expression through dramas, music, education etc. in
its own auditorium. The Assessing Officer assessed the income at
`77,74,610/- which included donations and after claiming depreciation.
He held that rental which it collected for hiring out the premises and
maintenance charges which it claimed for that purpose amounted to
commercial activity which obligated the assessee to maintain separate
books of account. The assessee carried the matter in appeal. The
Commissioner of Appeals following the previous orders of the Tribunal in
respect of the other assessment years allowed the appeal. The revenue?s
appeal to the ITAT was dismissed. The ITAT had followed its previous
orders for the 1986-87 to 1988-89. This Court notices that in ITA
No.499/2012 (Director of Income Tax Vs. Indian National Theatre Trust
decided on 5.9.2012), the very same question was agitated in another
appeal by the revenue pertaining to the assessment year 2008-09. This
Court considered and applied its ratio in the previous decision for
assessment year 1986-87 to 1988-89 being ITR No.134/1986 decided on
13.11.2007. Since it is not disputed that the Tribunal followed its
previous decision, which had been carried in appeal by the revenue (to
this Court) there is no reason to depart from the judgment and reasoning
in ITR No.134/1986 as followed in ITA No.499/2012. Consequently, the
revenue?s appeal is bereft of merit and hence no substantial question of
law arises for consideration.
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The appeal is therefore dismissed.
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S. RAVINDRA BHAT, J
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R.V.EASWAR, J
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NOVEMBER 19, 2012
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vld
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$ 9
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