TaxTMI 
TaxTMI 
2026 (4) TMI 574
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....g of the said Trust was scrutinised and the recognition granted as trust was withdrawn in exercise of power under Section 12AA(3). This withdrawal was challenged before the Tribunal. The Tribunal, taking into consideration the objects of assessee Trust, its functioning and the judgment rendered in Director of Income Tax (Exemptions) vs. Chartered Accountants Study Circle reported in [2012] 347 ITR 321 (Madras), allowed the appeal of the assessee. Hence, the Department is before this Court challenging the order passed by the Tribunal, restoring the status of the respondent trust. 2. The Learned Counsel appearing for the Revenue submitted that the power of the Department to withdraw/cancel the status of trust, in the light of amendment bro....
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....actice relating to all aspects of the profession or business of ship broking. c. To vet suitable candidates for admission to the test conducted by the Institute of Chartered ShipBrokers, London. d. To exercise supervision over the members of the Institute and secure for them such professional standing as may assist them in the discharge of their duties. 5. Whereas, it is contended that the Institution is conducting educational programmes for the persons involved in the shipping industry and the Institution is the only Institution imparting such education and therefore, entitled for status of a trust. However, the objects on the face of it, indicate that the Institution primarily concentrates on disseminate knowledge of ....
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....ctivity (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 when the charges are markedly or significantly above the cost incurred by the assessee in question, that they would fall within the mischief of "cess, or fee, or any other consideration" towards "trade, commerce or business". In this regard, the Court has clarified through illustrations what kind of services or goods provided on cost or nominal basis would normally be excluded from the mischief of trade, commerce, or business, in the body of the judgment. 273. Section 11(4-A) must be interpreted harmoniously with Section 2(15), with whic....
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....nel, providing private rental spaces in fairs or trade shows, consulting services, etc. then income or receipts from such activities, would be business or commercial in nature. In that event, the claim for tax exemption would have to be again subjected to the rigours of the proviso to Section 2(15) of the IT Act. H. Application of interpretation At the cost of repetition, it may be noted that the conclusions arrived at by way of this judgment, neither precludes any of the assessee's (whether statutory, or non-statutory) advancing objects of general public utility, from claiming exemption, nor the Taxing Authorities from denying exemption, in the future, if the receipts of the relevant year exceed the quantitative limit. Th....