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2016 (6) TMI 782 - ITAT CHENNAI

2016 (6) TMI 782 - ITAT CHENNAI - [2016] 48 ITR (Trib) 637 - Eligibility 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 .....

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red 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 - I. T. A. Nos. 879 and 880/Mds/2015 - Dated:- 5-2-2016 - N. R. S Ganesan (Judicial Member) And A. Mohan Alankamony (Accountant M .....

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learned senior counsel for the assessee, submitted that the assessee is a charitable institution registered under section 12AA of the Income-tax Act, 1961. The assessee claimed exemption under section 11 of the Act in respect of the fees for certificate of origin, subscription fee, entrance fee and seminar income, etc. However, the Assessing Officer disallowed the claim of the assessee on the ground that the assessee-society falls within the fourth limb of section 2(15) of the Act being its obj .....

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rigin are, therefore, in the nature of business receipt only. Accordingly, the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. 3. Learned senior counsel for the assessee, placing her reliance on the International Convention relating to the Simplification of Customs Formalities and Protocol of Signature, submitted that the assessee was authorised to issue certificate of origin for export of goods from India. Referring to the judgment of the Madras High Court in .....

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bitration or issue of certificate are only incidental. Since the Madras High Court specifically found in the assessee's own case that fees received for issue of certificate of origin are incidental to the main activity, according to the learned senior counsel, the Commissioner of Income-tax (Appeals) is not justified in saying that issue of certificate of origin is commercial in nature. 4. On the contrary, Shri A. V. Sreekanth, learned Departmental representative, submitted that the assessee .....

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he Act. The learned Departmental representative further submitted that even though registration under section 12AA was granted, the Assessing Officer has to examine the issue independently before allowing the claim under section 11 of the Act. Therefore, the Commissioner of Income-tax (Appeals) has rightly confirmed the order of the Assessing Officer. 5. We have considered the rival submissions on either side and also perused the material available on record. Admittedly, the assessee was registe .....

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