TaxTMI 
TaxTMI 
2016 (8) TMI 554
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Income Tax (Appeals) - VII, Chennai, dated 27.02.2014. Since common issue arises for consideration in all these appeals, I heard these appeals together and disposing of the same by this common order. 2. Shri R. Venkatesh, the Ld. representative for the assessee, submitted that the assessee-Bar Council of Tamil Nadu is a statutory regulatory body established under Advocates Act, 1961 to regulate the profession of legal practice in India. The assessee-Bar Council of Tamil Nadu has established a Welfare Fund for the benefit of practicing Advocates. According to the Ld. representative, Advocates' Welfare Fund is not a legal entity. In fact, it is a fund established by Bar Council of Tamil Nadu for the welfare of legal practitioners. Howeve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to 2010-11, the Director of Income Tax (Exemptions) has to now examine whether registration has to be granted after satisfying himself about the fulfilment of conditions prescribed under the provisions of the Act. After the order of the Director of Income Tax (Exemptions), the matter has to be reexamined by the Assessing Officer. Therefore, the Ld. representative submitted that the matter may be remitted back to the file of the Assessing Officer for reconsideration. 4. On the contrary, Sh. P. Radhakrishnan, the Ld. Departmental Representative, submitted that though the assessee claims that Advocates' Welfare Fund established by Bar Council of Tamil Nadu, is not an independent legal entity, the registration was granted separately to the Adv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ier assessment years. Therefore, it may not be necessary to remit the matter back to the file of the Assessing Officer. 6. I have considered the rival submissions on either side and perused the relevant material available on record. The order of the Director of Income Tax (Exemptions) dated 29.08.2011 clearly says "Bar Council of Tamil Nadu and its unit Advocates' Welfare Fund" in the preamble portion of the order. It is not in dispute that Bar Council of Tamil Nadu was established under the provisions of the Advocates Act, 1961. The Bar Council of Tamil Nadu constituted a fund called Advocates' Welfare Fund for the welfare of the practicing advocates. The assessee now claims before this Tribunal that the application for registrati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y gone through the Advocates Act, 1961 and the Advocates' Welfare Fund Act, 2001. Section 3 of Advocates Act, 1961 enables to constitute Bar Councils in the respective States. Section 4 of the Advocates Act, 1961 enables constitution of Bar Council of India. Section 5 of the Advocates Act, 1961 clearly says that every Bar Council established either under Section 3 or 4 of the Advocates Act, 1961, shall be a body corporate having perpetual succession and a common seal, with a power to acquire and hold property. Therefore, Bar Council of Tamil Nadu is a statutory body constituted under Section 3 of the Advocates Act, 1961 as claimed by the assessee. 8. Section 3 of the Advocates' Welfare Fund Act, 2001 enables the respective State Go....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on obtained by the Bar Council of Tamil Nadu under Section 12AA of the Act cannot be a basis for claiming exemption under Section 11 of the Act for Advocates' Welfare Fund. The Advocates' Welfare Fund and the Bar Council of Tamil Nadu, shall obtain the necessary approval / registration under Section 12AA of the Act, separately. 9. In the case before us, even though the preamble of order of the Director of Income Tax (Exemptions) dated 29.08.2011 says "Bar Council of Tamil Nadu and its unit Advocates' Welfare Fund", the body of the order clearly says that the registration was granted only to the Fund and not to the Bar Council. The CBDT, however, after examining the application filed by the Bar Council of Tamil Nadu, found that ....