Bureau of Indian Standards v DGIT (E) 358 ITR 78 (Del)

Written by Ved Mittal

Bureau of Indian Standards v DGIT (E) 358 ITR 78 (Del)


BIS had granted exemption under section 10(23C) of the Act. DIT withdrew the exemption on the ground that activity of BIS fulfils all attributes of business, as BIS awarded the licenses under various product certification schemes for which a fee or consideration is charged. Hence it cannot be covered under section 2(15) of the Act. Hon. Delhi High Court held that taking license fee for granting marks/certification cannot be said to be done for the purpose of profit. Any profit/revenue earned is purely incidental. Hence BIS is not involved in carrying on any activity in the nature of trade, commerce or business and eligible to registration under section 10(23C) of the Act.