Tamil Nadu Maritime Board Vs ITO (ITAT Chennai)
The appeal was filed by Tamil Nadu Maritime Board against the order of the Commissioner of Income Tax (Exemptions), Chennai dated 29.09.2025, rejecting its application for registration under Section 12AB of the Income Tax Act, 1961.
The assessee is an agency of the Government of Tamil Nadu established under the Tamil Nadu Maritime Act, 1995, responsible for regulation and maintenance of minor ports. It had earlier obtained provisional registration under Section 12AB and claimed exemption under Section 11 for assessment years 2023–24 and 2024–25. Subsequently, it applied for final registration on 27.03.2025.
During the proceedings, the assessee submitted that it performs sovereign functions such as managing ports, framing rules, providing infrastructure, facilitating navigation, and collecting fees for services. However, the CIT(E) rejected the application, holding that the activities did not fall within the scope of “charitable purpose” under Section 2(15) and that the application was not maintainable under Section 12A(1)(ac)(iii). The rejection was based on the view that the assessee’s activities were not charitable and were akin to business operations.
Before the Tribunal, the assessee argued that it is an instrumentality of the State carrying out activities for the benefit of the general public, particularly in regulating and maintaining minor ports, which contributes to public safety and infrastructure. It was further contended that the CIT(E) had accepted the objects as charitable but denied registration merely because fees were charged in the course of activities. The assessee also submitted that no specific adverse findings were recorded regarding the nature of its activities.
