| |
| The Tax Publishers2020 TaxPub(DT) 0563 (Del-HC) : (2020) 426 ITR 0108 : (2020) 313 CTR 0002 : (2020) 269 TAXMAN 0579 INCOME TAX ACT, 1961
Section 12A
Merely because objects of assessee Association of Third Party Administrators (ATPA) were for the advancement of business of TPA, it would not ipso facto render the trust to be non-charitable. The objects of trust were not exclusively for promotion of interests of TPA members rather to provide benefit to general public in the field of insurance and health facilities. The fact of benefits accruing to TPA members in the course of carrying out main activities of trust, could not, by itself, render the institution being a non-charitable organisation. Accordingly, denial of registration under section 12A was not justified.
|
Charitable trust - Registration under section 12A - Denial on the ground that assesse was aiming at industry status for Third Party Administrator (TPA) business, and was working for mutual benefit of its members- Objects being not exclusively for promotion -
Assessee, Association of Third Party Administrators (ATPA) filed an application seeking registration under section 12A. CIT(E) declined registration on the ground that assesse was aiming at industry status for Third Party Administrator (TPA) business, and was working for mutual benefit of its members. Held: Merely because objects of assessee trust were for the advancement of business of TPA, it would not ipso facto render the trust to be non-charitable. The objects of trust were not exclusively for promotion of interests of TPA members rather to provide benefit to general public in the field of insurance and health facilities. The fact of benefits accruing to TPA members in the course of carrying out main activities of trust, could not, by itself, render the institution being a non-charitable organisation. Accordingly, denial of registration under section 12A was not justified.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
 SUBSCRIBE FOR FULL CONTENT
|