Appeal granted, applicant company to receive registration.

The Tribunal allowed the appeal, setting aside the DIT's order and instructing the grant of registration to the applicant company.

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Issues:
Application for registration u/s. 12A(1)(aa) of the Act rejected by DIT (Exemption) - Whether company's objects are non-charitable/commercial - Whether application for registration should be granted.

Analysis:
The appeal was filed against the DIT (Exemption) order rejecting the application for registration u/s. 12A(1)(aa) of the Act. The company, a non-profit making institution, applied for registration u/s. 12A on 26.3.2013. The DIT observed the company's main object was for the benefit of its members only, having non-charitable/commercial objects. The company's submission was rejected by the DIT, leading to the appeal.

The Ld. Counsel argued that the DIT misunderstood the company's objects, emphasizing the company's incorporation u/s. 25 of the Companies Act for non-profit institutions. The Counsel cited Supreme Court decisions supporting the company's position. The Ld. Departmental Representative supported the DIT's decision.

The Tribunal analyzed the company's objects, noting the restriction on commercial activities in the Memorandum of Association and the Articles of Association's clause on profit application. Referring to Supreme Court cases, the Tribunal highlighted that promoting trade, commerce, and industry benefits the community, not just members. The Tribunal cited precedents where similar rejections were overturned, directing the DIT to grant registration to the company.

In conclusion, the Tribunal allowed the appeal, setting aside the DIT's order and instructing the grant of registration to the applicant company. The decision was pronounced in open court on 9th September 2015.

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