Federation of European Business in India Vs CIT (Exemption) (ITAT Delhi)
Advocacy for EU Businesses Is Also Charity: No Profit Motive, No Commercial Activity: Chamber-Style Body Held Charitable- ITAT Restores 12A Registration
Assessee, a sec-8 company formed to promote policy advocacy between EU business community & Indian authorities, applied for regular registration u/s 12A(1)(ac)(vi).
CIT(E) rejected the application & also cancelled the earlier provisional registration on grounds that activities benefitted only members, no charitable expenses were shown, & objects were not of general public utility u/s 2(15).
Tribunal examined objects, including promotion of commerce, trade-policy dialogue, IP protection, CBAM-related recommendations, & found these activities inherently fall within advancement of objects of general public utility, relying on landmark rulings such as Andhra Chamber of Commerce, FICCI, AUDA, India Trade Promotion Organization, & the Kolkata Tribunal’s ruling in Indian Chamber of Commerce. Tribunal held that CIT(E) misapplied the law, as Assessee’s main object showed no profit motive, no commercial services, & activities inherently serve wider public interest. Tribunal also noted violation of natural justice since CIT(E) cancelled provisional registration without reasons or hearing. Tribunal set aside the denial order, directed CIT(E) to grant 12A registration forthwith, & restored provisional registration.
FULL TEXT OF THE ORDER OF ITAT DELHI
