Policy Advocacy for EU–India Business Is Charitable Activity u/s 2(15)

Case Details: Federation of European Business in India vs. Commissioner of Income-tax (Exemption) - [2025] 181 taxmann.com 303 (Delhi-Trib.)

Judiciary and Counsel Details

Challa Nagendra Prasad, Judicial Member & Avdhesh Kumar Mishra, Accountant Member
Amol Sinha & Ankit Kumar, Advs. for the Appellant.
Jitender Singh, CIT-DR for the Respondent.

Facts of the Case

The assessee, a non-profit company, registered under section 8 of the Companies Act, 2013, filed its Form No. 10AB for regular registration under section 12A(1)(ac)(vi) as it was engaged in ”Advancement of any other objects of general public utility”, which were charitable activities.

The CIT (Exemptions) rejected the request for regular registration under section 12A(1)(ac)(vi) and also cancelled the provisional registration granted for assessment years 2024-25 to 2026-27 on the ground that the assessee was not engaged in any charitable activity as defined under section 2(15).

ITAT Held

On appeal, the Delhi Tribunal held that as per the object of the assessee, it had to promote commerce in India with the European Union business community and to protect & facilitate the interest of the European Union business community in India by advocacy of policy between the European Union business community and the Indian public authorities regarding trade policy, ease of doing business, intellectual property right protection and European union investment protection in India.

It was evident from the assessee’s object that it had to build an overall environment that secures the interests and well-being of the European Union business community, so that they have ease of doing business in India. The issue here was only whether an entity that watches over the business interests of its members can be said to be engaged in charitable activities as defined under section 2(15).

In the given case, it was not the case of the CIT that the assessee was found engaged in any trade and commerce. The assessee was various European business entities, European trade associations, etc. Thus, the CIT was not justified in the eyes of the law by rejecting the registration under section 12A on the reason that the assessee was not doing any charitable activity within the ambit of section 2(15).