INCOME TAX ACT, 1961

Section 12AA

Charitable trust - Registration under section 12AA - CIT(E) did not mention specific objective not covered within charitable purposes -

Assessee sought registration under section 12AA, which was denied by CIT(E) on allegation that assessee existed only for a particular group of persons i.e. membership was restricted to traders in batteries and allied businesses. CIT(E) alleged that there was no obligation for spending income for charitable purposes only and held that objective of assessee-society did not fall under ambit of section 2(15). Held: Since CIT(E) did not point out any particular objective which was not for charitable purposes and since objectives were not restricted to any single or specified person/or persons, thus, assessee was eligible for registration under section 12AA. In view of same, issue was remanded to CIT(E) with a direction to grant registration under section 12AA.

REFERRED : CIT v. Andhra Chamber of Commerce (1965) 55 ITR 722 (SC) : 1965 TaxPub(DT) 0190 (SC) CIT (Exemptions) v. Water and Land Management Training and Research Institute (2017) 83 Taxmann.com 234 (Hyd) : 2017 TaxPub(DT) 1811 (Hyd-HC) PHD Chamber of Commerce & Industry v. Director of Income Tax (Exemptions) (2013) 357 ITR 0296 (Del) : 2013 TaxPub(DT) 0453 (Del-HC) Director of Income Tax (Exemption) v. Chembur Gymkhana (2012) 346 ITR 86 (Bom) : 2012 TaxPub(DT) 2358 (Bom-HC) CIT v. Ernakulam District Cement Dealers Association (2002) 253 ITR 198 (Ker.) : 2002 TaxPub(DT) 0683 (Ker-HC) CIT v. Andhra Pradesh Riding Club (1987) 168 ITR 393 (AP) : 1987 TaxPub(DT) 1328 (AP-HC) CIT v. Andhra Prdesh Police Welfare Society (1984) 148 ITR 287 (AP) : 1984 TaxPub(DT) 0499 (AP-HC) Ahmedabad Foundry and Engineering Cluster v. Director of Income Tax (Exemption), Ahmedabad [ITA No. 186/Ahd/2014, dt. 10-3-2017] Dy. DIT (Exemptions) v. PHD Chamber of Commerce & Industry [IT Appeal No. 1233(DELHI) OF 2010, dt. 31-3-2011] Bengal Hosiery Manufacturers' Association v. Director of Income Tax (Exemption) (2012) 18 ITR 205 (Kol) : 2012 TaxPub(DT) 2714 (Kol-Trib)

FAVOUR : In assessee's favour

A.Y. :

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