2016 (3) TMI 828

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....tition for condonation of delay. We have heard the Sr. Counsel for the assessee and the ld. Departmental Representative. We find that there was sufficient cause for not filing the appeal within the stipulated time. Therefore, we condone the delay and admit the appeal. 3. Smt. Pushya Sitaraman, ld. Sr. Counsel for the assessee submitted that the assessee-trust was granted registration u/s 12AA of the Act by an order dated 22.5.1992. The object of the trust is to bring together within its fold persons, firms, limited companies and organizations etc. who are engaged in trade and commerce with a view to co-ordinate their efforts to improve their business interests and to establish close contacts among themselves. In the course of the activity ....

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....n Rs. 10 lakhs, at the best, the Assessing Officer during the course of assessment proceedings, may deny exemption provided u/s 11 of the Act. However, it will not entitle the DIT(E) to cancel the registration granted u/s 12AA of the Act. The ld. Sr. Counsel placed her reliance on the unreported judgment of the Delhi High Court in the case of India Trade Promotion Organization vs DIT(E) & Others in W.P.(C) 1872/2013, dated 22.1.2015, a copy of which is filed by the Sr. Counsel for the assessee. 5. On the contrary, Shri Pathlavath Peerya, ld. Departmental Representative submitted that the assessee is engaged in rendering service to the trade and commerce, therefore, the assessee is not entitled for registration u/s 12AA of the Act. Referrin....

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....aritable any incidental activity for furtherance of the object would not fall within the expressions 'business', 'trade' or 'commerce'. In fact, the Delhi High Court has observed as follows: "67. The expressions "trade", "commerce" and "business" as occurring in the first proviso to section 2(15) of the Act must be read in the context of the intent and purport of section 2(15) of the Act and cannot be interpreted to mean any activity which is carried on in an organised manner. The purpose and the dominant object for which an institution carries on its activities is material to determine whether the same is business or not. The purport of the first proviso to section 2(15) of the Act is not to exclude entities which ....

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....xamine whether the activity of the assessee in issuing certificate of origin to its members and non-members is an incidental activity in furtherance of its object or it is a dominant object. The Madras High Court in the assessee's own case in Tax Case No. 186 to 188 of 1976, had an occasion to consider this issue. After considering the object of the trust, the Madras High Court found that issuing certificate of origin in respect of the goods is only incidental activity in furtherance of its main activity. The Madras High Court has also observed that there is nothing to show that the assessee, in giving assistance by way of arbitration or issuing certificate of origin in respect of the goods, was carrying on any activity for profit. In f....