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2019 (11) TMI 632 - ITAT CHENNAIExemption u/s.11 - activities of the assessee trust was not charitable in nature as it is rendering services to the business organizations - HELD THAT:- Assessee before us is a society formed by Government of Tamil Nadu with an object of promoting industrial growth and exports in the state of Tamil Nadu. It process the application submitted by the industrial organization and verify whether the applications are in conformity with the rules relating to environment, local authority, fire protection, water, forest, police etc. Fees were charged for rendering this services as prescribed by the Tamil Nadu Government from the industrial organization. Assessee is duly registered u/s.12A. It is not the case of the assessee that it falls within the preview of first three limbs i.e. relief for poor, education and health but under public general utility. Therefore the provisions of Section 2(15) of the Act are squarely applicable. According to AO, proviso to Section 2(15) of the Act are applicable as it charges fees from the business organizations for the services rendered by it. CIT(A) confirmed the findings of the AO following the decision of the Co-ordinate Bench of the Tribunal in assessee’s own case for earlier years. No argument were advanced as to how the proviso to Section 2(15) of the Act is not applicable to the case of the assessee. The whole case of the assessee is premised on the argument that it is instrumentality of the State coming within the meaning of Article 12 of the constitution and therefore it is not an assessable entity. Submissions made by the ld. Counsel cannot be accepted even the State Corporation Societies cannot be equated with State Government though it is instrumentality of the State as held in the case of Arun Kumar and Others vs. Union of India and Others [2006 (9) TMI 115 - SUPREME COURT] - Appeal of the assessee stands dismissed.
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