S. 11 : Property held for charitable purposes-Charitable purpose- Strive to promote the trade, commerce and manufacturers of India without seeking to make profits for its members is charitable purpose-Denial of exemption is held to be not justified. [S. 2(15)]

The AO denied the exemption under section 11 of the Act by holding that the proviso to section 2(15) of the Act was applicable in the case of assessee as it had rendered services in relation to commercial activity for which fees were charged. The Order of the AO is affirmed by the CIT(A). On appeal allowing the appeal of the assessee the Tribunal held that the main object of the assessee is to promote and protect the trade, commerce and manufacturers of India and in particular the trade, commerce and manufacturers of the Bombay Presidency. The Tribunal also held that the amounts received from the members are not in nature of trade (since there is no exchange of goods either for goods in return or money) or commerce. Therefore the activities carried out by the assessee Chamber continue to be charitable in nature even under the amended definition under S. 2(15) of the Act and assessee is entitled for exemption under S. 11 of the Act. Referred Indian Chamber of Commerce v. ITO (2015) 67 SOT 176 (Kol.)(Trib). (ITA No. 5832/Mum/2019, dt. Bench ‘B’ dt. 30-9-2021) (AY.2009-10)