TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 606
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.... engaged in "Advancement of any other objects of general public utility", which are charitable activities. However, the Ld. CIT(E), observing as under, not only rejected the request for regular registration under section 12A(1)(ac)(vi) of the Act but also cancelled the provisional registration granted vide order dated 07.03.2024 for AYs 2024-25 to 2026-27: "5. On perusal of part submission, it is seen that the applicant (FEBI) is working for the benefit of European Union business community in India. FEBI seeks the opinion of and advocates for the EU business community in India. Thus, the objective for the existence of applicant is to work for the members of EU Business Community in India who are essentially members of the applicant institution. The relevant objects of company are reproduced as under - "1. To promote commerce in India and to protect and facilitate the interest of the European Union business community in India. By setting up, maintaining and promoting a high level dialogue of policy advocacy between the European Union business community and the Indian public authorities regarding trade policy, ease of doing business, intellectual property right prot....
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....he said period as no charitable expenses have been listed. Further, it is noticed that majority of expenses debited to Income & Expenditure account are in the nature of administrative expenses i.e. legal and professional charges, salary, audit fees etc. As such, the applicant has claimed to have incurred expenses for charitable activities but the expenses are only of administrative nature only. 8. The applicant has also relied on a plethora of judicial pronouncement in support of its claim for registration. The cases relied upon by the applicant are as under: 1. Commissioner of Income Tax vs. Andhra Chamber of Commerce (1965) 55 ITR 722 (SC) 2. Commissioner of Income Tax vs. Federation of India Chambers of Commerce & Industries (1981) 6 Taxmann 7 (SC) 3. India Trade Promotion Organization vs. Director General of Income Tax (Exemptions) (2015) 53Taxmann.com 404 (Delhi) 4. Confederation of Pharma Dealers Association vs. Commissioner of Income Tax (Exemption) [2022] 137 Taxmann.com 117 (Raipur-Trib.) 5. Dahisar Sports Foundation vs. Income Tax Officer (Exemption)-(1). Mumbal [2017] 87 Taxmann.com 313 (Mumbai-Trib.) 6. Bomb....
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....s per the estimates of stakeholders, requiring firms to share detailed production information and potentially establish dual production lines for greener exports and standard products. 2. Need for India's Own CBAM to Balance Trade Competitiveness: As the EU's CBAM evolves, Indian industries face competitive pressures. India may consider Implementing its own CBAM on imports to safeguard domestic industries and align with global standards. Recommendation: To address the increased costs and compliance burdens imposed by the EU's CBAM, Indian firms should receive support in adopting greener production practices. Additionally, India may consider introducing its own CBAM on imports to protect domestic industries and maintain competitiveness in global markets. This dual approach will enable Indian firms to align with international standards while balancing trade competitiveness." 6. The Ld. Counsel further submitted that the Carbon Border Adjustment Mechanism and the appellant assessee's recommendations, if implemented by the Public Authorities and industries at large would help the general public at large not only in India but across the globe. Hence, the....
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....panies Act, 1956 the main object of the assessee is to promote and protect the trade, commerce and industries and in particular the trade, commerce and industries in or with which Indians are engaged or associated with. We further find that the ICC with main object of promoting and protecting trade, commerce and industries carries on certain activities in the form of holding meetings, seminars and conferences to create awareness among its members and nonmembers meaning thereby that it meetings/conferences/ seminars are not confined to its members only. The ICC derives income by way of sponsorships of such seminars, conferences and meetings from various industrial houses/trading and commercial entities and this has been so in the instant year also. The assessee received sum of Rs. 9,48,14,435/- from holdings of such meetings/seminars and conferences. Besides during the impugned year, the assessee has received incomes by way of interest on FDRs, rental income and miscellaneous income from the properties held by the assessee. We note the AO treated such activities of organizing conferences, meetings and seminars as business activities reasoning that the ICC was charging consideration ....
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....activity: Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is twenty-five lakh rupees or less in the previous year," 14. We have minutely perused the decision of Hon'ble Apex Court in the case of ACIT vs. Ahmedabad Urban Development Authority (supra) and observed that the Hon'ble Apex Court has nowhere held that the activities carried on by the charitable entity which are supportive to the attainment of main object are to be treated as non-charitable activities. The Hon'ble Court has even held that activities of charging of any amounts towards consideration for any activity (advancing general public utility) which is on cost basis or nominally above cost, cannot be considered to be trade, commerce or business or any services in relation thereto in Para 253 page 82. The Hon'ble Court has held as under: "A.3. Generally, the charging of any amount towards consideration for such an activity (advancing general public utility), which is on cost-basis or nominally above cost, cannot be considered to be trade, commerce or business or any services in relation thereto, it is only ....
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.... miscellaneous income. Therefore, we find force in the contentions of the Ld. AR that the decision of Hon'ble Apex Court has wrongly been interpreted and applied against the assessee. In our opinion, the decision is squarely applicable to the facts of the case and in view of that the ICC is entitled to exemption u/s 11 of the Act as the activities of the advancement of main object is not hit by the proviso to Section 2(15) of the Act even post amendments. 16. We also note that the assessee's case is squarely covered in its own case by the decision of Hon'ble Bench in ITA No. 1284/kol/2012 for A.Y. 2009-10 wherein the issue was decided by the coordinate bench in favour of the assessee and the revenue has not preferred any appeal against the decision of Co-ordinate Bench before the Hon'ble High Court and the issue has attained finality. The operative part of the decision in ITA No. 1284/Kol/ 2012 is extracted as under: "32. ............................................. 3. The newly inserted proviso to section 2(15) will apply only to entities whose purpose is 'advancement of any other object of general public utility' i.e, the fourth limb of the definition ....
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....ion 2(15), would be well advised to eschew any activity which is in the nature of trade, commerce or business or the rendering of any service in relation to any trade, commerce or business. 33. From the Memo Explaining the provisions of Finance Bill 2008 & CBDT Circular dated 19-12-2008, what will be position of an entity engaged in the 'advancement of any other object of general public utility', whether the same will be hit by commercial activities in view of the newly inserted proviso to section 2(15) of the Act or not? The proviso was introduced with the sole aim of bringing into ambit of taxation such entities which were engaged in commercial activities. Here, we need to appreciate the concept of an "entity engaged in commercial activities". In very simple words, any entity whose main or dominant object is commercial can only be said to be a commercial entity. An entity whose main purpose is undoubtedly charitable in nature without an iota of commerciality in it cannot be said to be engaged in commercial activity. Also we need to note that another point that emerges from the above is that whether an entity is carrying on an activity in the nature of trade, commerce or ....
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....t the case of the appellant assessee was squarely covered by the above-mentioned decision of Tribunal in the case of Indian Chamber of Commerce; 162 taxmann.com 43. 9. On the other hand, the Ld. CIT-DR, placing reliance on orders of the Ld. CIT(E), prayed for dismissal of the appeal. 10. We have heard both parties and have perused the material available on the record. We find force in the contentions/submissions/arguments of the Ld. Counsel. Section 2(15) deals with definition of charitable purpose. Last limb in the definition is "advancement of any other object of general public utility". "Charitable purpose" is defined to include relief of the poor, education, yoga, medical relief, preservation of environment and advancement of any other object of general public utility. In following judicial pronouncements, the Hon'ble Supreme Court and various Hon'ble High Courts have done interpretation of words "any other object of general public utility"; Gujarat Maritime Board [2003] 295 ITR 561 (SC), Bharat Diamond Bourse [2003] 259 ITR 280 (SC), Agricultural Produce and Market Committee [2007] 291 ITR 419 (Bom.), Federation of Indian Chambers of Commerce & Industry [1981] 130 ITR 18....
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....he appellant assessee that it has to build up an overall environment securing the interests and wellbeing for/of European Union business community so that they have ease of doing business in India. The Ld. CIT(E) opined that such object to promote the business of members of appellant assessee and not public at large is not charitable activities defined under section 2(15) of the Act. It is not a case of the Ld. CIT(E) that the appellant assessee is found engaged in any trade and commerce. Members of the appellant assessee are various European business entities, European trade associations, etc. 13. The issue here is only that can an entity watching the business interest of its members be said engaged in charitable activities defined under section 2(15) of the Act. In the above-mentioned facts and circumstances of the case and above referred case laws; in particular Andhra Chamber of Commerce (Supra), Ahmedabad Urban Development Authority (Supra), Federation of India Chambers of Commerce & Industries (Supra), India Trade Promotion Organization (Supra), Confederation of Pharma Dealers Association (Supra) and Indian Chamber of Commerce (Supra), we, respectfully following these deci....