POWER LOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL,MUMBAI vs. INCOME TAX OFFICER (EXEM) WARD 2(2), MUMBAI

ITA 1060/MUM/2025Status: DisposedITAT Mumbai28 March 2025AY 2013-14Bench: SMT. BEENA PILLAI (Judicial Member), SHRI OMKARESHWAR CHIDARA ( (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the issue of whether the assessee's activities fall under the nature of trade, commerce, or business needs to be examined in light of Supreme Court judgments. It also noted that the principle of mutuality might not apply to revenues from non-members.

What were the facts?

The assessee, a company registered under Section 25 of the Companies Act, claimed exemption under Section 11 of the Income Tax Act. The Assessing Officer denied the exemption, holding that the assessee was engaged in activities of trade, commerce, and business, and that its income exceeded the prescribed limits.

What were the issues?

Whether the assessee's activities constitute trade, commerce, or business, and if the principle of mutuality applies to its income.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 2(15)

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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI OMKARESHWAR CHIDARA

For Appellant: Shri. S.L. Jain a/w Shri. Satish Jain
For Respondent: Shri. Mukesh Thakwani, SR. D.R
Hearing: 24.03.2025Pronounced: 28.03.2025

Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 23/01/2025 passed by NFAC, Delhi for Assessment Year 2013-14 on following grounds of appeal. 1. “Ld. CIT(A) erred in holding that Appellant is not entitled to claim exemption u/s 11 as a Charitable /Non-Profit Organization as Appellant is engaged in the activity in the nature of trade, commerce or business or render services in relation to trade, commerce or business disregarding the fact that Appellant is registered u/s 25 of Company

The order continues below.

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