2016 (6) TMI 782

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..... Tribunal is of the considered opinion that even though the assessee is receiving fees for issuing certificate of origin, that does not amount to a commercial activity. As found by the Madras High Court, the activity of receiving fee and issuing certificate of origin is only incidental to the main activity. Therefore, this Tribunal is of the considered opinion that the assessee is eligible for exemption under section 11 of the Act. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the exemption under section 11 of the Act to the assessee provided the income is applied for charitable activity in furtherance to its objects. - Decided in favour of assessee - I. T. A. Nos. 879 and 880 .....

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..... is charging fees for the services, the essential characteristic of voluntary nature was lost. The fees received for certification of origin are, therefore, in the nature of business receipt only. Accordingly, the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. 3. Learned senior counsel for the assessee, placing her reliance on the International Convention relating to the Simplification of Customs Formalities and Protocol of Signature, submitted that the assessee was authorised to issue certificate of origin for export of goods from India. Referring to the judgment of the Madras High Court in the assessee's own case for the assessment years 1967-68 to 1969-70, the learned senior counsel for the asse .....

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..... 12AA was granted, the Assessing Officer has to examine the issue independently before allowing the claim under section 11 of the Act. Therefore, the Commissioner of Income-tax (Appeals) has rightly confirmed the order of the Assessing Officer. 5. We have considered the rival submissions on either side and also perused the material available on record. Admittedly, the assessee was registered as a charitable institution under section 12AA of the Act and registration continues even for the years under consideration. It is an admitted fact that the object of the assessee is of general public utility. In the course of its activity, the assessee was issuing certificate of origin and receiving fees. The main contention of the Revenue before th .....

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