TaxTMI 
TaxTMI 
2016 (2) TMI 396
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....ation started its operation actively from the financial year 2008-09 and onwards. No individual is benefitted by the objectives and activities of the organization and it is not carrying out any commercial activity covered by section 2(15) of the Act and submitted that the assessee comes within the ambit of general public utility and prayed for registration u/s 12AA of the Act. When this appeal was taken up for hearing by the Ld. Commissioner, the assessee has submitted that the assessee is not involved in carrying out any activity relating to trade, commerce or business. Therefore, the proviso to section 2(15) of the Act has no application and submitted that it will come within the ambit of advancement of any other object of general public utility and hence eligible for registration u/s 12AA of the Act. 3. The Ld. Commissioner after considering the explanations of the assessee, he has observed that "applicant institution would Act as the final authority for taking decisions for industrial development of the region only with reference to petroleum, chemical and petrochemical industries together with development of surface communication including construction of bridges, without, ho....
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....rt in the case of Bureau of Indian Standards (BIS) Vs. Director General of Income Tax vide W.P. (C)No.1755 of 2012 dated 27.9.2012. 8. On the other hand, the Ld. D.R. has submitted that the sole purpose for which the assessee is created for the development of coastal corridor i.e. Visakhapatnam Kakinada Petroleum, Chemical and Petrochemical Investment Region Special Development Authority (VK PCPIR SDA). Though directly not involved in trade or commerce or business, it is rendering service in relation to the trade, commerce or business, would come within the purview of proviso to section 2(15) of the Act, and therefore not eligible for registration u/s 12AA of the Act and strongly supported the order passed by the Ld. Commissioner. The Ld. D.R. also relied on the decision of Chandigarh bench in the case of Punjab State Seed Certification Authority Vs. CIT-I Chandigarh 144 ITD 671. He also relied on the decision of Andhra Pradesh State Seed Certification Agency Vs. CCIT & Others 256 CTR 380. 9. We have heard both the parties, perused the records and gone through the orders of the authorities below. The assessee is "Visakhapatnam Kakinada Petroleum, Chemical and Petrochemical Invest....
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.... account of Petroleum, Chemical and Petrochemical Investment Region (PCPIR). 3. Government, after careful examination of the issue, and in exercise of powers conferred under section 3 of the Andhra Pradesh Urban Areas (Development) Act, 1975, decided to notify the areas for a total area of 603.58 Sq.Kms. stretching from Visakhapatnam to Kakinada consisting 110 Revenue Villages in 10 Mandals of Visakhapatnam and East Godavari Districts as proposed by the APIIC Limited as given in Appendix-I and constitute the Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemical Investment Region (PCPIR) Special Development Authority as given in Appendix-II." 10. After careful consideration of the above GOM No.373 issued by the Government of Andhra Pradesh, the assessee is created by the State of Andhra Pradesh as a Special Development Authority to achieve the objectives entrusted by the Government of India relating to Petroleum, Chemical and Petrochemical industry for the purpose of orderly growth and environmental upgradation in such areas. It is the duty of the assessee that "to control the land usage, preparation of Master plan, enforcement and regulatory functions, besides other fun....
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....BIS Act, these statutory bodies (including BIS) are empowered to frame rules or regulations, exercise coercive powers, including inspection, raids; they possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The primary object for setting up such regulatory bodies would be to ensure general public utility. The prescribing of standards, and enforcing those standards, through accreditation and continuing supervision through inspection etc., cannot be considered as trade, business or commercial activity, merely because the testing procedures, or accreditation involves charging of such fees. It cannot be said that the public utility activity of evolving, prescribing and enforcing standards, "involves" the carrying on of trade or commercial activity." 13. With the above observation, the Hon'ble Delhi High Court has quashed the order passed by the DGIT and petition filed by the assessee was allowed. The Hon'ble Delhi High Court has held that when the public authority collecting a fee for enforcing the standards, it cannot be said that it is carrying on trade or commercial activity. In the present case, the assessee has collected som....