IITAT provides relief to ERNET India

IITAT provides relief to ERNET India

It found that the tribunal had already discussed the issue for the Assessment Years 2009-10 and 2010-11

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has granted relief to ERNET India. It held that the organization was eligible for tax benefits under the Income Tax Act, 1961.

The assessee runs a National Research and Education Network dedicated to support the needs of the research and education community within the country. The varied areas include communication, developing policy options of network infrastructure and acting as a research center for technological and managerial resources in the area of computer network.

While concluding the assessment proceedings, the assessing officer (AO) had held that the appellant's transactions were in the nature of business or commerce that were similar to the private players.

However, the first appellate authority had granted relief to the assessee by holding that the assessee was not involved in any trade or business and, therefore, provisions to the Act were not attracted.

While dismissing the appeal filed by the Revenue, the judicial member Amit Shukla and accountant member NK Billaiyaand found that the issue was discussed clearly by the tribunal in the case for assessment years 2009-10 and 2010-11. In its 2017 order, it had held that no part of the function carried out by the assessee was in the nature of trade/business.

The tribunal, thus, ruled, "The said order of the Tribunal has also been affirmed by the Delhi High Court vide separate orders in 2018." It rejected the appeals filed by the Revenue.