S. 2(15) – Charitable purpose is not affected on levy of fees

The ICAI does not carry on any business, trade or commerce. The activity of imparting education in the field of accountancy and conducting courses both at pre-qualification as well as post-qualification level are activities in furtherance of the objects for which the petitioner has been constituted. Activities of providing coaching classes or undertaking campus placement interviews for a fee are in relation to the main object of the petitioner which as stated earlier cannot be held to be trade, business or commerce. Accordingly, even though fees are charged by the petitioner institute for providing coaching classes and for holding interviews with respect to campus placement, the said activities cannot be stated to be rendering service in relation to any trade, commerce or business as such activities are undertaken by the petitioner institute in furtherance of its main object which as held earlier are not trade, commerce or business. It further held that ICAI providing funds to ICAI Accounting Research Foundation would not violate Section 13 of the Act

 Institute of Chartered Accountants of India v. DIT(E) [2013] 35 taxmann.com 140 (Delhi)