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TMI Blog2025 (1) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... stration u/s 12A of the Act which has been granted by the ITAT, Mumbai as per the decision referred above holding that assessee is a charitable trust set up in advance an object of general public utility The assessing officer has nowhere demonstrated how the activities of the assessee trusts were for the benefit of persons covered u/s 13(3) r.w.s. 13(1)(c) of the Act. As decided in the case of NCDEX [ 2023 (10) TMI 24 - ITAT MUMBAI ] that the income of the assessee with respect to contribution received from recognized stock exchange and the members thereof is eligible for exemption under section 10 (23EC) of the act. Central government for this exemption also notifies the assessee. Therefore, as far as the income of contribution is concerned, the learned CIT A has correctly granted the assessee under that section. Appeal of the Revenue is dismissed. - Shri Saktijit Dey, Hon ble Vice President And Shri Amarjit Singh, Hon ble Accountant Member For the Assessee : Shri Tanzil Padvekar For the Revenue : Shri R.R. Makwana, Sr. DR ORDER PER AMARJIT SINGH, AM: All these four appeals filed by the Revenue are directed against the different order passed by the ld. CIT(A), NFAC. Since common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? 4. Whether on the facts and circumstances of the case and in law the Ld.CIT(A) is right in allowing exemption u/s 11 of the Act without appreciating the fact that the fund created is for the benefit of the related parties mentioned in section 13(3) of the Act and activities of the fund are not for public at large but for MCX and its members in particular, who are contributing funds? 5. Whether on the facts and circumstances of the case and in law the Ld.CIT(A) is right in upholding the decision of the Hon'ble ITAT in assessee's own case for A.Y. 2013-14 that the interest income from Fixed Deposits and savings account and voluntary contributions from MCX is not a business income but such contribution from MCX was towards corpus fund and thus proviso to section 2(15) will not apply in the assessee's case despite the fact that the objects of the trust are only in the nature of advancement of any other object of general public utility? 2. Fact in brief is that assessee e-filed its return of income on 30.09.2014 declaring total income at Rs. Nil. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 31.08.2015. The trust was registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not hit by proviso of section 2(15) of the Act and therefore the it was entitled to exemption u/s 11 of the Act. (d) The appellant also placed reliance on the decisions in cases of ICAI Writ Petition (Civil) No. 1927 Of 2010 dated 19/09/2011, Suart art Silk Mfrs. Association (1979) 121 ITR 1, Ahmedabad Rana Caste Association dated (1983) 140 ITR 1(SC), Sai Publication Fund (2002) 4 SCC 57. H. Abdul Bakhi (1964) 15 STC 664 (SC), Lahore Electric Supply Company (1966) 60 ITR 1(SC). 4. However, the AO has not agreed with the submission of the assessee and held that its activities were not charitable. The AO was also of the view that assessee trust was set up as per SEBI/FMC guidelines which was not a voluntary activity. The assessing officer also of the view that activity of the assessee trust was for the benefit of related parties mentioned in section 13(3) of the Act as it was settled by MCX and beneficiaries were MCX and members and investors. Therefore, assessing officer opined that activities of the assessee was not for the benefit of public at large but the same was for the benefit of its members those who made contribution to the funds of the assessee. Alternatively, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 856/M/2023 dated 22.09.2023. 7. On the other hand, ld. DR supported the order of lower authorities. 8. Heard both the sides and perused the material on record. We find that assessee trust was created as per the mandatory requirement of FMC/SEBI for the benefit of investor which include public at large. The contributions are received from MCX based on FMC/SEBI guidelines which form part of corpus of assessee as specifically directed in such contribution. The assessee trust does not collect any fees, charge or cess directly or indirectly from anyone, neither does it render any services for any fees there was no element of any commercial / business angles in its activities. The assessee has applied registration u/s 12A of the Act which has been granted by the ITAT, Mumbai as per the decision referred above holding that assessee is a charitable trust set up in advance an object of general public utility The assessing officer has nowhere demonstrated how the activities of the assessee trusts were for the benefit of persons covered u/s 13(3) r.w.s. 13(1)(c) of the Act. The CBDT vide Notification No. 77/2023/F-173/105/2013-ITA-1 dated 12.09.2023 specified that the Multi Commodity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comprehensive and holistic reading of the trust deed would allay all such misgiving/s or inference/s, and, in our clear view there is no scope for taking any such view. Firstly, as a condition for an eligible claim, the relevant member or the stock exchange is to be declared as a 'defaulter following the prescribed procedure. Two the corpus of the fund is to be built through, inter alia, share of listing fees, interest on 19 listing deposit, paid, and kept by the issuer companies with the respective stock exchange. An individual member of a particular member stock exchange is not called upon to pay any direct charges to the applicant fund, in fact, a part of the auction money of the defaulting money is also, in terms of the SEBI circular (FIITC/F11/02/2002 dated 15.05.2002), made over to the corpus of the fund. Accordingly, the object of the applicant cannot be as a service In relation to any trade, etc. Further, even assuming so, the same does not involve any consideration inasmuch as no quid pro quo can be attributed to the mandatory contributions to the fund by the participating stock exchanges In our considered view, therefore, the applicant fund is a public charitable fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee claiming exemption under section 10 (23EC) and under section 11 and 12 of the act. The impugned assessment year before us is assessment year 2016 17, 2019 20 and 2020 21. Therefore, we find no justification in the claim of the revenue that assessee can only claim exemption under section 11 and 12 even prior to 1/4/2024. Thus, we do not find any merit in the argument of the revenue. Further the assessment orders passed under section 143 (3) of the act for earlier years and subsequent years have granted assessee exemption on contribution income under section 10 (23EC) of the act and all other income under section 11 and 12 of the act. In view of this, the grounds of appeal raised by the learned assessing officer do not hold any merit. Therefore, dismissed. 016. Accordingly, as similar issue involved in other two appeals of the learned assessing officer, we dismiss the appeal of the revenue for assessment year 2016 17, 2019 20 and 2020 21. 017. As we have already dismissed the appeal of the revenue, the cross objection filed by the assessee becomes infructuous, therefore those are also dismissed. Since identical issue was dealt with by the Tribunal as discussed therefore ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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