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TMI Blog2016 (3) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is set aside. - Decided in favour of assessee. - ITA No. 1608/Mds/2012 - - - Dated:- 25-2-2016 - N. R. S. Ganesam, JM And A. Mohan Alankamony, AM For the Appellant : Smt Pushya Sitaraman, Sr. Counsel Shri V S Manoj, Adv For the Respondent : Shri Pathlavath Peerya, CIT ORDER Per N R S Ganesan, Judicial Member This appeal of the assessee is directed against the order of the Director of Income-tax (Exemptions), Chennai, dated 7.12.2011 cancelling the registration granted u/s 12AA of the Income-tax Act, 1961. 2. There was a delay of 189 days in filing the appeal by the assessee. The assessee has filed a petition for condonation of delay. We have heard the Sr. Counsel for the assessee and the ld. Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the ld. Sr. Counsel, issue of certificate of origin is incidental to carrying on the charitable activity. The Madras High court while considering the case of the assessee, found that the issue of certificate of origin is incidental to the main activity of the assessee. Once it is incidental to the activity, according to the ld. Sr. Counsel, the assessee-trust is entitled for registration u/s 12AA of the Act, and therefore, the impugned order of cancellation cannot stand in the eye of law. 4. Referring to the amount of receipts which exceeds ₹ 10 lakhs for the assessment year 2009-10, ld. Sr. Counsel submitted that if the receipts exceeds more than ₹ 10 lakhs, at the best, the Assessing Officer during the course of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o trade and commerce? This Tribunal is of the considered opinion that when the assessee is rendering service in the form of issuing certificate o origin, it has to be treated as rendering service to the trade and commerce. 7. We have also gone through the judgment of the Delhi High Court in the case of India Trade Promotion Organization (supra). The Delhi High Court, after considering the statement made by the Finance Minister on the floor of the Parliament, found that the expressions 'business', 'trade' or 'commerce' as used in first proviso sec. 2(15) must be interpreted restrictively and where the dominant object of an organization is charitable any incidental activity for furtherance of the object would not fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earning incomes have sought to claim that their purposes would also fall under charitable purpose . Obviously, this was not the intention of Parliament and, hence, I propose to amend the law to exclude the aforesaid cases. Genuine charitable organizations will not in any way be affected.' The expressions business , trade or commerce as used in the first proviso must, thus, be interpreted restrictively and where the dominant object of an organisation is charitable any incidental activity for furtherance of the object would not fall within the expressions business , trade ' or commerce . 8. In view of the above judgment of the Delhi High Court, we have to examine whether the activity of the assessee in issuing cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igin in respect of goods, was carrying on any activity for profit. The dominant purpose of the assessee-chamber is only to pursue an object of general public utility. The services rendered in connection with arbitration or issue of certificates are only incidental. 9. In view of the above judgment of the Madras High Court, which is binding on this Tribunal, issuing certificate of origin in respect of the goods exported is incidental to the main charitable activity of the assessee. Therefore, as observed by the Delhi High Court in the case of India Trade Promotion Organization(supra), proviso to sec. 2(15) may not be applicable to the assessee's case. Therefore, we are unable to uphold the order of the DIT(E). Accordingly, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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