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The Tax Publishers Indo French Chamber of Commerce & Industry v. ADIT [ITA No. 386/Mum/2013, dt. 15-4-2016] : 2016 TaxPub(DT) 2116 (Mum-Trib) Chamber of commerce whether hit by proviso to section 2(15) post assessment year 2009-10 *Facts:* Assessee chamber was denied exemption and income was subjected to tax on the plea that they fell outside the scope of section 2(15) read with the proviso inserted w.e.f. 1-4-2009. Reason for such reading being the assessee carried out meetings, conferences etc. which was a commercial activity. Commissioner (Appeals) voiced the views of the assessing officer. On further appeal: Held by the ITAT in favour of the assessee that they were entitled to the trust exemption. It is the dominant activity which has always been the fact to decide whether the trust is eligible for exemption. The insertion of the proviso does in no way whittle down the same in the case of an assessee. The activity of conference, meeting etc. was only incidental to the main objects or core objects which was any other object of general public utility.

The Tax Publishers

Indo French Chamber of Commerce & Industry v. ADIT [ITA No. 386/Mum/2013, dt. 15-4-2016] : 2016 TaxPub(DT) 2116 (Mum-Trib)

Chamber of commerce whether hit by proviso to section 2(15) post assessment year 2009-10

Facts:

Assessee chamber was denied exemption and income was subjected to tax on the plea that they fell outside the scope of section 2(15) read with the proviso inserted w.e.f. 1-4-2009. Reason for such reading being the assessee carried out meetings, conferences etc. which was a commercial activity. Commissioner (Appeals) voiced the views of the assessing officer. On further appeal:

Held by the ITAT in favour of the assessee that they were entitled to the trust exemption.

It is the dominant activity which has always been the fact to decide whether the trust is eligible for exemption. The insertion of the proviso does in no way whittle down the same in the case of an assessee. The activity of conference, meeting etc. was only incidental to the main objects or core objects which was any other object of general public utility.