Dismissing the appeal of the revenue the Court held that ; the the assessee had been incorporated without any profit motive. The services provided by the assessee were of general public utility and were towards membership and connectivity charges and were incidental to its main objects. The assessee (though not a statutory body) carried on regulatory work. Both the appellate authorities had concluded that the assessee’s objects were charitable and that it provided basic services by way of domain name registration, for which, it charged subscription fee on an annual basis and also collected connectivity charges. No question of law arose. (AY. 2009-10)
CIT ( E ) v. National Internet Exchange of India. (2019) 417 ITR 436 (Delhi) (HC) Editorial: SLP is granted to the revenue , CIT ( E ) v. National Internet Exchange of India. (2019) 412 ITR 41 (St)
S. 12A : Registration –Trust or institution- providing basic services of domain name registration charging annual subscription fees and connectivity charges —Incidental to main objects of assessee —Entitled to exemption [ S.2(15) 10(23C)(IV) , 260A ,Companies Act, 1956, S.25 ]