TaxTMI 
TaxTMI 
2018 (2) TMI 1735
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....ted as such for the relevant Assessment Year. Concededly, the assessee is a charitable society and has got the protection of Section 2 (15) read with Section 10 (23)(C) of the Income Tax Act. This Court notices that the bar code licensing activity carried on by the assessee essentially hinges upon the public policy measure adopted by the Union Ministry of Commerce. Under somewhat similar circumstances - concerning the fee receipt for domain name registration, the Court has held that such receipts are not commercial (Commissioner of Income Tax (Exemption) Vs. National Internet Exchange of India (in ITA No. 521/2017 & CM No. 815/2018 decided on 09.01.2018). The Court had then held as follows :- "It is contended by the Revenue that the as....
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....he conclusions of the lower appellate authorities, no question of law arises. The appeal is therefore dismissed. " This Court by its judgment in GSI India Vs. Director General of Income Tax (Exemption) and Anr., (2014) 360 ITR 138 granted exemption under Section 2(15) read with Section 10(23C)(iv), observing as, follows :- 24."The petitioner does not cater to the lowest or marginalized section of the society, but Government, public sector and private sector manufacturers and traders. No fee is charged from users and beneficiaries like stockist, whole sellers, government department etc. while a nominal fee is only paid by the manufacturer or marketing agencies i.e. the first person who installs the coding system which is not at all exorbi....
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....thing is present. In the absence of "profit motive" and charity being the primary and sole purpose behind the activities of the petitioner is perspicuously discernible and perceptible. 27. As observed above, fee charged and quantum of income earned can be indicative of the fact that the person is carrying on business or commerce and not charity, but we must keep in mind that charitable activities require operational/running expenses as well as capital expenses to be able to sustain and continue in long run. The petitioner has to be substantially self-sustaining in ling-term and should not depend upon government, in other words taxpayers should not subsidize the said activities, which nevertheless are charitable and fall under the residuar....