IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
  10.08.2011 
 Present:  Mr. Abhishek Maratha, Sr. Standing Counsel for the appellant 
 with Ms Teena Sharma, Advocate. 
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 +ITA 945/2011 
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 The respondent who is an alumni of Mayo College, has been given 
 registration under Section 12A read with Section 12AA (1) (b) of the Act 
 with effect from 01.04.1999 and order to this effect was passed on 
 15.09.2000.  Thus, it is registered as charitable institution.  Likewise, 
 the respondent has also been granted exemption under Section 80G of the 
 Act from 27.03.2000.  Such exemption is given for a particular period 
 which is renewed from time to time.  Last exemption was up to 31.03.2009. 
 Thereafter, the respondent made an application for renewal of this 
 exemption under Section 80G of the Act on 15.09.2009.  This was, however, 
 denied by the Director of Income Tax (Exemption) for the reason that it 
 had received income under the head ?Advertisement and golf tournaments 
 income? and it has also incurred substantial expenditure on this activity 
 only.  The respondent took the matter in appeal.  The ITAT vide impugned 
 order has set aside the order of the Director of Income Tax (Exemptions), 
 Delhi, holding that the assessee is entitled to exemption. Two aspects 
 are highlighted by the Tribunal in this behalf which are: (i) the main 
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 object of the respondent/assessee is to encourage education in broader 
 sense and one of such activity was organizing golf tournament which 
 resulted in some income from advertisement and also expenditure on the 
 advertisement, would not alter the basic character of t he assessee as 
 charitable organization as this was full of educational activities. 
 Needless to mention, by the very nature of this association, holding of 
 such advertisement tournament for the  members i.e. ?Old Boys 
 Association? would be permissible and that factor alone cannot become 
 reason for holding that the respondent has incurred expenditure in the 
 activities of commercial nature.  The Tribunal relied upon the judgment 
 of this Court in the case of ICAI Accounting Research Foundation Vs. 
 Director General of Income Tax (Exemption), 321 ITR 73 and rightly so, 
 (ii) the assessee/respondent continues to enjoy the registration under 
 Section 12A of the Act which means that the Income Tax department itself 
 holds respondent to be an institute of charitable nat ure so long as it 
 can subsists. Exemption under Section 80G of the Act could not be enjoyed 
 on the ground that the respondent did not carry on any charitable 
 activity.  No question of law arises. 
 The appeal is hereby dismissed. 
 A.K. SIKRI, J. 
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 M.L.MEHTA, J. 
 August 10, 2011 
 awanish 
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 #29-31 and 35, 36