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TMI Blog2013 (5) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... State of Tamil Nadu. The assessee facilitates in providing licence, approval and permission from various Government agencies for setting up of industry in the State, for which it is charging fee. The fee charged by the assessee is not remitted to the Government treasury or exchequer. After insertion of proviso to section 2(15) the assessee has lost its character of charitable organization. The assessee is a service provider. Against assessee. - IT Appeal No. 201 (Mds.) of 2013 - - - Dated:- 21-3-2013 - Dr. O.K. Narayanan, AND Vikas Awasthy, JJ. For the Appellant B. Suresh. For the Respondent Shaji P. Jacob. ORDER:- Vikas Awasthy, Judicial Member - The assessee has filed appeal against the order of the CIT(A) -XII, Chennai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investment between Rs. 10 - 50 crores Rs. 3,00,000 Projects with investment between Rs. 50 -100 crores Rs. 5,00,000 Projects with investment between Rs. 100 -300 crores Rs. 10,00,000 Projects with investment between Rs. 300 -1000 crores Rs. 15,00,000 Projects with investment above Rs. 1000 crores Rs. 20,00,000 The Assessing Officer vide assessment order dated 29.12.2011 held that in view of the amended provision of section 2(15) of the Income Tax Act, the activities carried on by the assessee are in the nature of trade, commerce or business and are not for charitable purposes. The Assessing Officer held that the assessee lost its character of charitable org ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c utility" as it involves carrying of any activities which are in the nature of rendering services in relation to trade, business, commerce." Aggrieved against the order of the CIT(A), the assessee has come in second appeal before the Tribunal. 5. Shri B. Suresh appearing on behalf of the assessee submitted that the assessee is a society and is an extended arm of the State Government. It is providing single window facility for entrepreneurs to set up industry in the State of Tamilnadu. The objectives of the society are not in the nature of carrying on any trade or commerce or business or any services in relation thereto and hence, it is not earning any profit out of the activities being carried out. The AR further submitted that as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed on record a copy of Memorandum of Association and bye-laws of the assessee society to show the aims and objects of the assessee society. At this juncture, it would be important to find out whether the assessee would be covered by the proviso to section 2(15) of the Act. The assessee is allegedly undertaking charitable activities which are of general public utility. Before deciding the issue it would be relevant to refer to provisions of section 2(15) of the Act, which is reproduced herein below:- "2(15) "charitable purpose" includes relief of the poor, education, medical relief, [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... setting up industry or trade or business. If the argument of the A.R. is to be accepted that activities of the assessee contribute in collection of direct and direct taxes for the nation and is providing employment opportunities to the people in the State thereby serving as relief for the poor, then it would not be wrong to say that all industrial houses set up in the State are doing charitable activities by providing employment and generating revenue for the nation in the form of excise, income-tax, customs duty etc. As has been rightly pointed out by the CIT(A) that the assessee is rendering services to its clients (investors/entrepreneurs) which in turn engage in manufacturing or other business activities against the fee termed as single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the assessee although an extended arm of State Government formed as a society to carry out charitable activities in the nature of 'general public utility' is in fact providing assistance to industrial houses and entrepreneurs for setting up of industry in the State of Tamil Nadu. The assessee facilitates in providing licence, approval and permission from various Government agencies for setting up of industry in the State, for which it is charging fee. The fee charged by the assessee is not remitted to the Government treasury or exchequer. After insertion of proviso to section 2(15) of the Act, the assessee has lost its character of charitable organization. The assessee is a service provider. Therefore, we do not find any infirmity in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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