TaxTMI 
TaxTMI 
2013 (5) TMI 472
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....l Nadu with the objects of advising, scouting and impressing on corporates especially foreign corporates to set up industrial units in the State of Tamil Nadu. The assessee is also registered under section 12A of the Income Tax Act, 1961 as a charitable organization. 3. For the assessment year 2009-10, the assessee filed its return of income on 18.10.2010 admitting Nil income. The case of the assessee was selected for scrutiny and notice under section 143(2) was issued to the assessee on 15.9.2011. The case of the assessee is, that the assessee is a Government body and charitable institution, it has been set up with an object of providing information and assistance to entrepreneurs for establishing industrial units in the State of Tamil Na....
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....l of the assessee with the following observations:- "The above collection of fees was for processing the application, for guidance, providing information etc. in establishing the projects, to assist them in availing the financial facilities, to obtain customs clearance and other facilities etc. Thus the assessee is rendering services to its clients (investors/entrepreneurs) who in turn engage in manufacturing and other business activities. Therefore, the fees collected by the assessee is directly amounts to the services rendered by it in relation to the trade, business and commerce. Therefore, the assessee is considered to be engaged in the activities which are in the nature of rendering services in relation to any trade, commerce or busin....
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....charged by the assessee society earns foreign exchange as majority of receipts are from foreign business houses. The AR further submitted that mere charging of fees for rendering of services will not change the character and the nature of services rendered by the society. In order to support his contentions, he relied on the judgement of the Hon'ble Delhi High Court in the case of Bureau of Indian Standards v. DGIT(Exemptions) . 6. On the other hand, the DR appearing on behalf of the Revenue strongly supporting the order of the CIT(A) submitted that the case of the assessee is squarely covered by the amended provisions of section 2(15) of the Income Tax Act. Therefore, the assessee has lost the character of charitable activity. Thus the ap....
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.... trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity:] [Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is ten lakh rupees] or less in the previous year;]" 8. The assessee in the instant case is providing single window facility for setting up of industry in the State of Tamil Nadu. It would not be out of place to mention here that the assessee is providing such facility only to those who approach the assessee for setting up of industry in the State. For rendering such service, the assessee is charging huge fee. The assessee is not prov....
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....urt in the case of Bureau of Indian Standards (supra). We find that the ratio laid down by the Hon'ble Delhi High Court in the aforesaid case is not applicable in the facts and circumstances of the present case. Bureau of Indian Standards is a sovereign entity created under the Statute i.e. Bureau of Indian Standards Act, 1986. It is a statutory body empowered to frame rules or regulations, exercise coercive powers, including inspection, raids etc. They possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The object for setting up such regulatory bodies is to ensure general public utility by prescribing of standards and enforcing such standards through accreditation and continuing supervi....