The Institute of Indian Foundrymen vs. ITO, Ward-1(3) (Exemption), Kolkata

Parties Involved

Facts Summary

The Institute of Indian Foundrymen, a charitable institution, filed an appeal against the revisionary order passed by the Commissioner of Income Tax (Exemption) under section 263 of the Income Tax Act, 1961. The revisionary order set aside the assessment framed by the Assessing Officer, National e-Assessment Centre, Delhi, for the assessment year 2018-19. The Institute of Indian Foundrymen argued that the Commissioner of Income Tax (Exemption) erred in applying the proviso to section 2(15) of the Act, which excludes certain activities from being considered charitable. The Institute of Indian Foundrymen claimed exemption under section 11 of the Act, arguing that the surplus generated from its activities was meager and did not fall within the ambit of the proviso to Section 2(15) of the Act.…

Legal Issues

• 1. Whether the revisionary order passed by the Commissioner of Income Tax (Exemption) under section 263 of the Act is valid.
• 2. Whether the activities of the Institute of Indian Foundrymen are covered under the proviso to section 2(15) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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