https://www.taxtmi.com/caselaws?id=756797 ITAT Chennai allowed the appeal of a non-profit organization sponsored by Ministry of Commerce, registered under Companies Act Section 25, and approved under Section 10(23C)(iv). The assessee, a leather export promotion council with 2,850 members, was denied exemption by lower authorities claiming its activities constituted trade/business. ITAT held that rental receipts from trade fairs should be considered for the 20% limit under Section 2(15) second proviso, but only profit element (not entire receipts) counts as numerator. Since the council's trade fair activities showed losses and net surplus was below 20% of total receipts, exemption under Section 10(23C)(iv) was granted, setting aside lower authorities' orders. en-us Wed, 07 Aug 2024 00:00:00 +0530 Mon, 09 Jun 2025 14:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756797 ITAT Chennai allowed the appeal of a non-profit organization sponsored by Ministry of Commerce, registered under Companies Act Section 25, and approved under Section 10(23C)(iv). The assessee, a leather export promotion council with 2,850 members, was denied exemption by lower authorities claiming its activities constituted trade/business. ITAT held that rental receipts from trade fairs should be considered for the 20% limit under Section 2(15) second proviso, but only profit element (not entire receipts) counts as numerator. Since the council's trade fair activities showed losses and net surplus was below 20% of total receipts, exemption under Section 10(23C)(iv) was granted, setting aside lower authorities' orders. Case-Laws Income Tax Wed, 07 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756797