AI Structured Summary
Not yet generated for this judgment
Judgment
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:
The above appeals are directed against separate orders of the learned CIT(A)-National Faceless Assessment Centre [in short “NFAC”], Delhi, tabulated herein below. Since common issues are involved in all these appeals therefore, for the sake of convenience, these appeals are clubbed together for the purpose of hearing and adjudication.
| ITA 3147/DEL/2026 (AY: 2013-14) | Ld. CIT(Appeal) dated 13-Jan-2026 arising from the assessment order u/s 147 of the Act dated 30.05.2022 issued by the Circle Exemption- 2(1), Delhi with demand of Rs.1,16,46,86,680/-. |
| ITA 3048/DEL/2026 (AY : 2018-19) | Ld. CIT(Appeal) dated 14-Jan-2026 arising from the assessment order u/s 147 dated 23.04.2021 issued by National e-Assessment Centre, Delhi with demand of Rs.23,20,69,736/- |
The grounds of appeal raised by the Revenue in ITA Nos. 3147 & 3148/Del/2026 are identical mutatis mutandis, except for the change in figures; which read as under:
1.“That on the facts and circumstances of the case and in law, the Ld. CIT(A) is erred in allowing appeal of the assessee by ignoring that it is not carrying charitable activities as envisaged Section 2(15) r.w.s. 10(23C) of the IT Act, 1961.
2.That on the facts and circumstances of the case and in law, the Ld. CIT(A) is erred in allowing appeal of the assessee by merely relying on order of the Hon'ble ITAT without appreciating the facts of the case and findings of the АО.
3.That on the facts and circumstances of the case and in law, the Ld. CIT(A) is erred in allowing appeal of the assessee by merely relying on order of the Hon'ble ITAT, whereas the same has not been accepted by the revenue and further appeal is being filed before the Hon'ble High Court.
4.The Appellant craves leave to add, alter, amend, append or delete any of above grounds."
Brief facts of the case are that the assessee was registered under the Societies Registration Act, 1860 on 18.06.1980 with the mandate to assist the Government of India (GOI) and State Governments in the fields of reproductive health, HIV/AIDS prevention, eradication of tuberculosis and maternal and child health with its main objects as under:
i.To undertake activities in fields such as health services, nutrition and other related fields and to deal with malnutrition problems of people living in India.
ii.To run, operate, undertake and maintain training and in-service, training centers and/or programs and to employ skilled personnel for the said purpose or furthering the cause of the society and to support Government’s objectives and priorities under the National Health Mission.
The assessee enlists the services of doctors, paramedical personnel, mid wives, social scientists, gynecologists and other specialists and consultants and/or social workers, nurses and volunteers and complements the efforts of the GOI in priority health areas of maternal and child health, sanitation, tuberculosis, and family planning and gender based violence. Using marketing approaches, the assessee facilitates to fill gaps and address needs of the vulnerable population in the public health space of the country. The assessee has long-term commitment to the people of India and to maximizing its impact through advocacy, networking and collaboration with other organizations.
The assessee obtained registration under section 12A of the Act on 06.12.1991 w.r.f 20.03.1989. The assessee also received approval dated 31.10.2011 under section 80G of the Act. Registration/ Approval under section 10(23C)(iv) of the Act was granted to the assessee dated 14.03.1991 for A.Ys 1989-90 to 1991-92 on 31.01.2007 w.e.f for A.Y 2002-03. For the subject A.Y 2013-14, the assessee filed return of income on 29.09.2013 which was accepted as such vide assessment order dated 10.03.2016 passed under section 143(3) of the Act.
Subsequently, pursuant to reference made by the Assessing Officer during the course of assessment proceedings for A.Y 2016-17, approval granted to the assessee under section 10(23C)(iv) of the Act was rescinded by the Commissioner of Income-tax (Exemptions) [CIT(E)] vide order dated 16.03.2021. Pursuant to the order dated 16.03.2021 passed by the CIT(E), the National Faceless Assessment Centre (NFAC)/ Assessing Officer issued notice dated 31.03.2021 under section 148 of the Act for initiation of reassessment proceedings for the subject assessment year. The assessing officer proceeded to pass impugned reassessment order under section 147 of the Act on 30.05.2022, assessing the total income at Rs. 88,85,84,909/- holding that the assessee was not entitled to exemption under section 10(23C)(iv) of the Act in view of the order dated 16.03.2021 passed by the CIT(E) withdrawing the said exemption and therefore the receipts of the assessee during the relevant previous year were liable to tax.
Aggrieved by the order of the AO, assessee was in appeal before the ld. CIT(A). The ld. CIT(A) allowed the appeal of the assessee by observing that “since the ITAT has found that the appellant is eligible for exemption u/s 10(23C)(iv), addition made by the AO is not sustainable and may be deleted.”
Aggrieved by the order of the Ld. CIT(A), Revenue is now in appeal before us.
Before us, ld. Counsel for the assessee submitted that the case of the assessee is covered by the ITAT vide its order dated 30.11.2022 in ITA 433/Del/2021 for AY 2016-17 wherein it has restored the approval granted u/s 10(23C)(iv) of the Act. The ld AR further submitted that the ITAT order in its own case in ITA Nos.3383 & 3384/Del/2026 for A.Ys 2017-18 & 2021-22 has upheld that the assessee is a charitable entity under section 10(23C)(iv) of the Act.
We have heard the rival submissions and perused the material available on record. We find that the ITAT vide its order dated 30.11.2022 in ITA 433/Del/2021 for AY 2016-17, has restored the approval granted u/s 10(23C)(iv) of the Act. Further, for AY 2017-18 and 2021-22, the ITAT in ITA 3383,3384/Del/2026 has decided the issue in favour of the assessee vide order dated 28.07.2026. the relevant portion of the order is reproduced hereunder:
“8.We have heard the rival submissions and have perused the materials on record. We find that in the impugned order, the Ld CIT(A) has followed the order of the Tribunal in ITA No.433/Del/2021 for A.Y. 2016-17, which was decided in favour of the assessee. The mere fact that the Revenue has not accepted the ITAT order and is filing appeal before the Hon’ble High Court, does not erase the effect of the ITAT order. The hon’ble Supreme Court deprecated such argument of Revenue in the case of UOI V Kamlakshi Finance Corporation Ltd AIR 1992-SC-711. We, therefore, find no justification in the appeal of the Revenue and accordingly dismiss the appeals for both the years in A.Ys. 2017-18 and 2020-21. Appeal of Revenue is accordingly, dismissed.”
In view of the above factual matrix, we therefore, following the above mentioned ITAT orders, we find no reasons to interfere with the decision of the CIT(A) and dismiss the appeals of the Revenue for A.Ys 2013-14 & 2018-19.
In the result, both the appeals of the Revenue in ITA Nos.3147 & 3148/Del/2026 are dismissed.