TaxTMI 
TaxTMI 
2024 (7) TMI 1483
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....facts are identical and issues are common, for the sake of convenience these appeals are disposed off by this consolidated order. 2. The main ground of the appeal raised by the revenue is that the ld.CIT(A) erred in holding that the assessee is eligible for exemption u/s. 11 of the Income Tax Act, 1961 (hereinafter referred to as 'The Act') and the provisions of section 2(15) of the Act are not attracted income derived by the assessee even though it is in the nature of 'trade or business' when the gross receipts exceeds Rs. 25 lakhs. ITA No: 699/Chny/2024: 3. The brief facts of the case are that, the Tamil Nadu Advocates Welfare Fund (TNAWF) was created u/s. 6(2) of the Advocates Act 1961 and constituted by the state legislature under th....
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.... expenditure of Rs. 3.54 crores. The case was selected for scrutiny u/s. 143(2) of the Act and concluded the assessment by passing an order by the Assessing Officer on 23.03.2016 u/s. 143(3) of the Act, by denying the exemption u/s. 11 of the Act by invoking the proviso to section 2(15) of the Act for the reason that the assessee has involved in the nature of trade or business by selling the welfare funds stamps to the tune of Rs. 1,53,85,600/-, by holding as under: "6.1 Since the proviso to section 2(1 is invoked, the provisions of sections 11 & 12 become inoperative. The entire receipts including voluntary contribution is the income of the society. While the revenue expenditure corresponding to such income earning activity is alone allo....
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.... ITA Nos. 2616 to 2620/Mds/2016 dated 29.12.2016 allowed the exemption u/s. 11 of the Act and also accepted the claim of the assessee that the sale of welfare funds stamps to its members are even to the general public would render the activity to be advancement of other object of general public utility in terms of section 2(15) of the Act. Aggrieved by the order of the ld.CIT(A), the revenue is in appeal before us. 6. The ld.DR, assailing the action of the ld.CIT(A) stated that the ld.CIT(A) has erred in allowing the exemption u/s. 11 of the Act to the assessee even though the sale of welfare fund stamps to the members as well as general public that overriding the profit motive is inconsonance with first proviso to section 2(15) of the Act....
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....adu Advocate's Welfare Fund Act, 1987 comes under Schedule II in Serial No.7 of the provisions of the Advocate Welfare Fund Act, 2001 which is enacted and is functioning for the welfare of the Advocates at large even much prior to the enactment of the Central Act. In view of this Clause, there is no prior approval is required in the case of Tamilnadu Advocate's Welfare Fund Act as saving Clause is provided u/s. 38 of the Advocate Welfare Fund Act, 2001, there is an exemption for the applicability of the Central Act to the State of Tamilnadu. Therefore, as per section 23 of the Central Act, the Advocate's Welfare Fund is exempt from Income-tax and prayed for dismissing the appeal of the revenue and confirm the order of the ld.CIT(A). 9. We ....