TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 38
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....- 30832 dated 21.01.1997. The assessee Society is also registered u/s 12 A of the Income Tax Act 1961 (hereinafter referred to as the Act) vide order no. DIT (E)/99 - 2000/Q - 8/99/230 dated 28.07.1999. 2.1. The assessee filed its return of income on 30.09.2009 declaring ' nil' income. The Assessing Officer (AO) passed an order u/s 143(3) of the Act on 28.12.2011 denying exemption u/s 11 of the Act and determining the total income at Rs. 4, 24, 67, 644/-. The Ld. AO held that the assessee is engaged in advancement of any other object of general public utility and in view of the Proviso to Section 2(15) of the Act, such an institute is not charitable if it is involved in carrying on any activity in the nature of any trade, commerce or busin....
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.... per the mandate of its Constitution by the Ministry of Industry, Government of India and apex industry bodies such as CII, FICCI and Assocham, with the view to promote quality in India. QCI has established an accreditation structure in India including rules for application, assessment, accreditation and applicable accreditation criteria. As per the accreditation structure various certifying bodies, educational institutions and Hospitals etc., apply to their respective boards i.e., NABCB, NABET and NABH seeking accreditation from QCI. Applications for accreditation are accompanied with prescribed application fees. When the assessment is carried out by QCI, the assessed body is required to pay assessment fee to the assessee based on the cost....
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....5 CTR 541 Delhi. QCI which has been established by initiative of the Government of India for the purpose of evolving, prescribing and enforcing standards relating to products and processes and is charging, fees for providing services of accreditation facilities. Further the fact that QCI is generating profit does not bring it under the ambit of the amended provisions of section 2 (15). It argues that this activity falls within the term 'medical relief'. 7.2. The assessee's activities carried on by NABH relates to improvement of health service initiative, whereby it is accrediting hospitals and healthcare units and helping the state governments to improve the system and infrastructure of state owned medical infrastructure with a view to imp....
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....performs sovereign and regulatory function, in its capacity of an instrumentality of the State. Therefore, it is not involved in carrying any activity in the nature of trade, commerce or business. It was entitled to exemption u/s 10(23C)(iv)." 7.5. The Hon'ble Delhi High Court in the case of M/s GSI India vs. DIT, Delhi reported in 360 ITR 138 held that : "Section 2(15) of the Income-tax Act, 1961, was amended by the Finance Act, 2008, with effect from April 1, 2009, and a proviso was added to it. A second proviso was inserted to section 2(15) by the Finance Act, 2010, with retrospective effect from April 1, 2009. There are four main factors that need to be taken into consideration before classifying the activity of the assesseee as "cha....
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....ty or charitable activity is the anti-thesis of activity undertaken with profit motive or activity undertaken on sound or recognised business principles. The quantum of fee charged, the economic status of the beneficiaries who pay commercial value of benefits, in comparison to the fee, the purpose and object behind the fee, etc., are several factors which will decide the seminal question, is it business? Charitable activities require operational/running expenses as well as capital expenses to be able to sustain and continue in the long run. There is no statutory mandate that a charitable institution falling under the last clause should be wholly, substantially or in part must be funded by voluntary contributions. A practical and pragmatic v....