LAWS(IT)-2014-12-15

INDIAN CHAMBER OF COMMERCE Vs. INCOME TAX OFFICER

Decided On December 02, 2014
INDIAN CHAMBER OF COMMERCE Appellant
V/S
INCOME TAX OFFICER Respondents

JUDGEMENT

(1.) BOTH appeals by assessee are arising out of the order of CIT(A) -XIV in appeals Nos. 348, 847/CIT[A)(XIV/Kol/2010 -11/2011 -12, Dt. 7th Sept., 2012 and 9th Aug., 2012. Assessments were framed by ITO (Exemption -I). Kolkata under s. 143(3) of the IT Act, 1961 (hereinafter referred to as 'the Act') vide his orders Dt. 23rd Dec, 2010 and 9th Dec, 2011 for the asst. yrs. 2008 -09 and 2009 -10, respectively.

(2.) Brief facts relating to the issue are that the assessee association The Indian Chamber of Commerce' (in short ICC) being assessee company is an association of various industrialists formed in the year 1925 for development of trade, industries and commerce. The membership of the chamber comprises several largest corporate groups in the country, with operations all over country and abroad. It is a non -profit company incorporated under s. 25 of the Companies Act, 1956 without share capital and does not distribute any dividends to its members and also its entire receipt being expended for fulfilment of its objects. It was claimed that assessee association being set up for the purpose of promotion and protection of Indian business and industry is registered under s. 12A of the Act as charitable" association. The main objects for which the association came into existence are set out in cl. 3 of the memorandum of Association which reads as under:

(3.) The assessee filed its return of income for the year under consideration i.e. asst. yr. 2008 -09 being a charitable institution eligible for exemption under s. 11 of the Act on 13th Oct., 2008 declaring nil total income. During assessment proceedings, AO noted that certain activities of the assessee were clearly in the nature of business activities and thus issued a show -cause notice, as to why the following receipts credited in the income and expenditure account were not to be treated as in the nature of business receipts: