Case Law Details
Indian Chamber of Commerce Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that the Indian Chamber of Commerce (ICC) is entitled to exemption u/s 11 of the Act as ICC is not carrying on any activity of holding meetings, seminars and conferences for business purpose but only in support its main object hence it is not hit by the proviso to Section 2(15) of the Act even post amendments.
Facts- The assessee the Indian Chamber of Commerce (ICC) is an association of industrialists, being a company registered u/s. 25 of the Companies Act as non-profit making company and does not distribute any dividends to its members. Its entire receipts/revenue are being spent for the fulfilment of its objectives as per its Memorandum and Articles of Association.
AO during the course of assessment proceedings observed that the activities of the trust are hit by proviso to Section 2(15) read with Section 13(8) and therefore the exemption u/s 11 of the Act would not be available to the assessee as the activities of organising meetings, conferences, and various seminars constituted business activity and also the fact that the receipt of the assessee from these activities exceeded Rs. 25.00 Lacs in terms of proviso to Section 2(15) of the Act. Accordingly, exemption u/s 11 was denied for the impugned activities by the AO by dichotomizing and bifurcating the total receipt into two components, namely business income and charitable receipts/income u/s 11 of the Act and computed the income accordingly.
AO brought to tax the business income whereas the deduction was allowed u/a 11 of the Act in respect of charitable income.
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