आयकर अपीलीय अिधकरण ‘ए’ (cid:16)ायपीठ चे(cid:21)ई म(cid:24)। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No. 1438/Chny/2025 (Assessment Year N/A)

M/s Tamil Nadu Trade Promotion C.I.T. (Exemptions), Organization, Vs. Chennai.

6-A/B/C, Mount Poonamallee Road, Nandambakkam-600089 (Tamil Nadu)

PAN No. AABCT 6725 H Appellant/ Assessee Respondent/ Revenue Assessee represented by Mr. B. Ramakrishnan, C.A.

Department represented by Mr. Clement Ramesh Kumar, CIT.

Date of hearing 24/09/2025 Date of pronouncement 26 /09/2025 PER: RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER

1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Chennai [in short, the ld. CIT(E)] dated 29/03/2025 by raising following grounds of appeal:

“1. The order of the Learned Commissioner of Income Tax (Exemptions) is contrary to the law, facts and circumstances of the case.

2. For that the Learned Commissioner of Income Tax (Exemptions) erred in rejecting the application made for registration u/s 10(23C)(iv) of the Income Tax Act ("the Act")

3. For that the Learned Commissioner of Income Tax (Exemptions) had erred in holding that the appellant company was not established with charitable purposes.

4. For that the Learned Commissioner of Income Tax (Exemptions) erred in not appreciating the fact that the appellant being a Non-profit company registered u/s 25 of the Companies Act 1956 with its primary objective being the advancement of general public utility through promotion of Indian industry, trade and enhancement of its global competitiveness, is covered by the first proviso to Section 2(15) of the Act.

5. For that the Learned Commissioner of Income Tax (Exemptions) erred in concluding the appellant's activities to be 'commercial merely on the basis of surplus generation, without appreciating the fact that such surplus generated was applied towards the charitable purposes of the appellant company.

6. For that the Learned Commissioner of Income Tax (Exemptions) had failed to examine whether the appellant company's activities were incidental to the main charitable object and had also failed to appreciate the element of 'profit motive' in a holistic manner.

For these grounds and such other grounds that may be adduced before or during the hearing of the appeal, it is prayed that the Hon'ble Tribunal may be pleased to direct the Commissioner of Income Tax (Exemptions) to grant registration u/s 10(23C) (iv) of the Act and/or provide such other relief as this Hon'ble Tribunal may deem fit.”

2. As per the Statement of facts filed by the appellant Trust, the facts of the case, in brief, are that M/s. Tamil Nadu Trade Promotion Organization is a State Government undertaking established as a joint venture project of the Government of India, Ministry of Commerce & Industry represented by M/s India Trade Promotion Organisation (ITPO) (holding 51% of the Share Capital) and Government of Tamil Nadu represented by M/s Tamil Nadu Industrial Development Corporation Limited (‘TIDCO'), a Wholly owned State Government enterprise (holding 49% of the Share Capital) and was incorporated on 17th November 2000 as a "Non-Profit company' u/s 25 of the Companies Act, 1956, equivalent to Section 8 of the Companies Act, 2013.

3. The main objectives of the Appellant institution are to promote, organize and participate in industrial trade and other fairs in India and abroad and to take all measures incidental thereto for promoting Indian industry & trade and enhance its global competitiveness.

4. The appellant was granted registration u/s 10(23C)(iv) of the Income Tax Act ('the Act') under the old regime vide Order dated 06.03.2009 from AY 2007-08 onwards. However, the said registration, granted as above, was subsequently withdrawn from AY 2009-10 onwards vide Order dated 26.02.2013, on the ground that with effect from 01.04.2009, proviso to Section