2022 (1) TMI 544

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.... Income Tax Appellate Tribunal (hereinafter referred to as 'ITAT') in ITA Nos. 1919/Del/2016 for the assessment year 2009-10, 2508/Del/2016 for the assessment year 2010-11 and 3135/Del/2016 for the Assessment Year 2011-12. 3. Learned Counsel for the Appellant states that the Tribunal erred in ignoring the fact that the activities of the respondent/assessee do not qualify for charitable purpose in view of the Proviso to Sec 2(15) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') and hence the assessee does not qualify for the exemption under Section 10(23C)(iv)/11/12 of the Act. 4. It is pertinent to mention that in a writ petition being India Trade Promotion Organization vs. Director General of Income Tax (Exe....

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....he Constitution). It is well-settled that the courts should always endeavour to uphold the Constitutional validity of a provision and, in doing so, the provision in question may have to be read down, as pointed out above, in Arun Kumar (supra). xxx xxx xxx xxx 58. In conclusion, we may say that the expression "charitable purpose", as defined in Section 2(15) cannot be construed literally and in absolute terms. It has to take colour and be considered in the context of Section 10(23C)(iv) of the said Act. It is also clear that if the literal interpretation is given to the proviso to Section 2(15) of the said Act, then the proviso would be at risk of running fowl of the principle of equality enshrined in Article 14 of the Con....