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2016 (6) TMI 782 - AT - Income TaxEligibility for exemption under section 11 denied - as per revenue assessee is charging fees for issuing certificate of origin, it amounts to commercial activity, therefore, no element of charity remains in the object of the assessee - Held that:- Once the High Court in assessee's own case for the assessment years 1967-68 to 1969-70 found that the fees received by the assessee for arbitration and issuance of certificate are incidental to the main activity, the Revenue cannot contend now that the activity of issuing certificate of origin amounts to trade or commerce. Therefore, this Tribunal is of the considered opinion that even though the assessee is receiving fees for issuing certificate of origin, that does not amount to a commercial activity. As found by the Madras High Court, the activity of receiving fee and issuing certificate of origin is only incidental to the main activity. Therefore, this Tribunal is of the considered opinion that the assessee is eligible for exemption under section 11 of the Act. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the exemption under section 11 of the Act to the assessee provided the income is applied for charitable activity in furtherance to its objects. - Decided in favour of assessee
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