Commissioner Of Income Tax(Exemptions v. Apparel Export Promotion Council

$~35 *IN THE HIGH COURT OF DELHI AT NEW DELHI +ITA 808/2016 & CM Nos. 43251-43252/2016 COMMISSIONER OF INCOME TAX(EXEMPTIONS)..... Appellant Through: Ms. Vibhooti Malhotra, Adv. versus APPAREL EXPORT PROMOTION COUNCIL..... Respondent Through CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE NAJMI WAZIRIO R D E R%22.11.2016 1.The questions of law sought to be urged by the Revenue in this appeal are: (i) Whether the amounts received by the assessee could besought to be excluded from the description of thecharitable organisation since it involves rendering ofservices for commercial purpose? And (ii) Whether the depreciation claimed by it could not havebeen granted? 2.We notice that the Income Tax Appellate Tribunal (ITAT) hasrelied upon the rulings of this Court in India Trade PromotionOrganisation vs Director General of Income Tax (2015) 371 ITR333 and judgment dated 04.07.2013 in WP(C) 3147/2012, titled: TheInstitute of Chartered Accountants of India and Anr. vs DirectorGeneral of Income Tax (Exemptions), Delhi & Ors. No question oflaw, therefore, arises. 3.As far as second question urged with respect to permissibilityof depreciation, here the Revenue urges that the grant of depreciationwould result in a double benefit given that the assessee is a charitableorganization and, therefore, beneficiary of all exemptions.In thejudgment rendered by the Court in Director of Income Taxversus Vishwa Jagriti Mission (2013) 262 CTR 558 it was held thatgrant of depreciation does not result in a double or undue benefit. 4.Having regard to the fact that in both questions this Court hasruled against the Revenue, no substantial question of law arises. Theappeal is, accordingly, dismissed. S. RAVINDRA BHAT, J NOVEMBER 22, 2016/kk NAJMI WAZIRI, J