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2021 (9) TMI 195 - AT - Income TaxExemption u/s 11 - denying the registration u/s.12AA - Charitable activity u/s 2(15) - objects of the trust - HELD THAT:- Hon’ble Supreme Court in CIT Vs. Andhra Chamber of Commerce [1964 (10) TMI 19 - SUPREME COURT] considered a case in which the assessee therein, a chamber of commerce, had principal objects “to promote and protect trade, commerce and industries” and to stimulate and promote the development of trade, commerce and industries in India or any part thereof. In the light of such objectives, the Hon’ble Supreme Court held that public is vitally interested in the promotion of trade, commerce and industries and hence, the same falls within the scope of “advancement of any other object of general public utility”. Thus, it is apparent that the assessee satisfies the first condition of being in advancement of any other object of general public utility. Whether the assessee was carrying on activity in the nature of trade, commerce or business ? - The assessee-association carried out protests against certain clauses of the Shop Act for which it collected certain sums from its members and then spent it. The same is true for Advertisement receipts and expenses. The assessee organized certain campaign for the promotion of trade and commerce. The amount collected from the members was described as Advertisement receipts and the amount spent on organizing such an event was described as Advertisement cost. The same stands for Cricket Tournament revenue and expenses. Apart from that, there is minor Interest income and some amount of Membership fee. On going through the bifurcation of the Revenue and the Expenses sides for all the four years that have been take note of by the ld. CIT(E) in the impugned order, it becomes apparent that none of the activity is in the nature of trade, commerce or business. Thus, the assessee satisfies this condition as well. The assessee fulfils the requisite conditions for falling under the head ‘charitable purpose’ as defined u/s. 2(15) of the Act. Apart from that, the ld. CIT(E) has not referred to any other disqualification disentitling the assessee to registration. Overturning the impugned order, we grant the registration - Decided in favour of assessee.
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