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2016 (5) TMI 38 - AT - Income TaxRegistration u/s 12A denied - nature of activity - profit motive - When the assessment is carried out by QCI, the assessed body is required to pay assessment fee to the assessee based on the cost incurred. - Held that:- No hesitation in holding that the Assessing Officer was wrong in coming to a conclusion that the assessee activities are in the nature of trade, business or commerce or that the assessee was rendering any service in relation to such trade, business or commerce. The assessee has no profit motive and the fees collected for accreditation etc., is not for any activity which can be termed as business. As the assessee is not involved in any activity of trade, business or commerce or service in relation to trade, business or commerce, the provision to S.2(15) of the Act has wrongly been invoked by the A.O. In our view the Ld.CIT(A) has correctly appreciated the facts of this case and had applied the correct proposition of law to the facts of this case and granted relief to the assessee. Thus we uphold the order of the First Appellate Authority and dismiss this appeal of the Revenue. - Decided in favour of assessee.
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