TaxTMI 
TaxTMI 
2020 (4) TMI 260
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....wing the appeal of the assessee by ignoring that assessee was receiving contribution from the contributor port on commercial lines and was providing consultancy services to the ports and contributors ports had deducted tax at source on contributions given to the assessee and accordingly, the AO rightly invoked first proviso to Section 2(15) of the Act and consequently, added back unspent expenses of Rs. 2,34,58,706/- to the total income by considering them surplus of the assessee. ii. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law in ignoring that plea of mutuality taken by the assessee is misplaced as the assessee was providing services of its guest house and staff car to the persons ....
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..... Various receipts as per Income & Expenditure account of the assessee are as under:- Heads Income Miscellaneous Income Rs. 57,50,364/- Contribution received from major ports Rs. 4,62,25,128/- 5. A break up of miscellaneous income reported above are as under:- Subheads Income Sale and advertisement on "Indian Ports" Rs. 1,77,955/- Room rent received Rs. 5,02,545/- Income from fixed deposits Rs. 41,13,516/- Sundry income Rs. 9,56,618/- 6. We find that the assessee had incurred following expenditure in its Income and Expenditure account:- Heads Income Staff expenses Rs. 3,14,65,143/- Rest house expenses Rs. 30,11,044/- Office expenses Rs. 56,24,103/- General expe....
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....ture of trade, commerce or business. It was specifically pleaded that the holding of conference, providing consultancy services and management services are part of main objects of the association and these services are only provided to its members with the aim of no profit/loss basis and these members are contributing to the association for the same on the prefixed basis. Accordingly, it was specifically pleaded that these services are not provided for (a) any activity in the nature of trade commerce or business; (b) any activity or rendering any services in relation to any trade commerce or business; (c) for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such act....
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....ust or institution and whether separate books of accounts were maintained in respect of such activities. There can be no doubt that the activities of the nature described above, in the case of an assessee such as the present one, which is a trade association-Chamber of Commerce and Industry, established to protect the interests of trade and indu try in Punjab, Haryana and Delhi- were activities which are incidental to the attainment of the objects of the chamber. We do not think that the Tribunal is justified in taking the view that the assessee, which is a chamber of commerce and industry, is carrying on business activities which require compliance with the conditions of Section 11(4A). In CIT, Madras vs. Andhra Chamber of Commerce (1965) ....
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....bound by the majority opinion in Additional Commissioner of Income-tax, Gujarat vs. Surat Art Silk Cloth Manufacturers Association (supra). It would, therefore, appear that judicial thinking was never in favour of the view that the services performed by a trade, professional or similar association, such as a chamber of commerce and industry, were in pursuit of a business or trade with a profit motive." 12. We also find that the assessee is also covered by the decision of the Hon'ble Kerala High Court in the case of CIT vs Cochin Port Trust reported in 411 ITR 467 (Kerala) and the decision of the Hon'ble Gujarat High Court in the case of CIT vs Kandla Port Trust reported in 364 ITR 164 (Guj.). The relevant operative portions of the said j....