ITO Vs Tamilnadu Advocate Welfare Fund (ITAT Chennai)
ITAT Chennai held that section 23 of the Central Act provides for exemption of Income-tax to the Advocates Welfare Fund of the State. Accordingly, exemption granted and appeal of revenue dismissed.
Facts- The Tamil Nadu Advocates Welfare Fund (TNAWF) was created u/s. 6(2) of the Advocates Act 1961 and constituted by the state legislature under the Tamil Nadu Advocates Welfare Fund Act 1987 as Tamil Nadu Advocates Welfare Fund Trust Committee.
The assessee had filed return of income for A.Y. 2013-14 on 29.09.2013, declaring a total income of Rs. Nil. The case was selected for scrutiny u/s. 143(2) of the Act and concluded the assessment by passing an order by AO on 23.03.2016 u/s. 143(3) of the Act, by denying the exemption u/s. 11 of the Act by invoking the proviso to section 2(15) of the Act for the reason that the assessee has involved in the nature of trade or business by selling the welfare funds stamps to the tune of Rs.1,53,85,600/-
CIT(A) held that the sale of welfare funds stamps to its members are even to the general public would render the activity to be advancement of other object of general public utility in terms of section 2(15) of the Act. Aggrieved by the order of CIT(A), the revenue is in appeal before us.
