TaxTMI 
TaxTMI 
2012 (8) TMI 611
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....a charitable purpose within the meaning of section 2(15) of the Income-tax Act, 1961 ? and (2) In the event that the answer to the first question is in the affirmative, whether a remand of the proceedings would be necessitated in order to enable the Assessing Officer to determine whether the application of funds has been made in accordance with the pro- visions of section 11 ?" The appeal is admitted on the aforesaid questions of law and is by consent taken up for hearing and final disposal. The assessee is a trust registered under the Bombay Public Trust Act, 1950. The assessee is also registered under section 12 of the Income-tax Act, 1961. The assessee initially did not file a return of income for the assess....
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.... by an association or trust towards the general public and not towards itself. The Commissioner (Appeals) held that all the activities of the assessee are con- trolled by its members through a managing committee and the majority of its activities are carried out only for the purposes of the members. More- over, the Commissioner (Appeals) held that a major part of the expenditure is incurred on salaries and wages, security charges and telephone expenses. The Commissioner (Appeals) further noted that the assessee provided for the sale of alcohol in its restaurant. This activity, it was held, is not of a charitable nature nor is it incidental to any other main activity. Since the true nature and character of the assessee was held to be that of....
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....ivate family. This was held to meet the test spelt out by the Andhra Pradesh High Court in the case of CIT v. AndhraPradeshRidingClub [1987] 168 ITR 393 (AP) since it was open to every member of the public to become a member of the club. The Tribunal noted that the assessee had made a disclosure of the details of its sports activities and of the relevant income and expenditure figures. During the year, the assessee had engaged in various sports activities including badminton, billiards, lawn tennis, cricket, table tennis and roller skating and an amount of Rs. 52 lakhs was expended on the construction of a swimming pool. As regards the issue relating to serving alcohol in the restaurant attached to the club, the Tribunal held that this was ....
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....blic. It cannot be said that a purpose would cease to be charitable even if public welfare is intended to be served. If the primary purpose and the predominant object are to promote the welfare of the general public the purpose would be charitable purpose. When an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility, but not so if it seeks to promote the interest of those who conduct the said trade or industry (CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC)). If the primary or predominant object of an institution is charitable, any other object which might not be charitable but which is ancillary or incidental to the dominant purpose, would not prevent the i....
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.... or a group of individuals. On these facts, the primary issue which has been decided by the Tribunal must be answered by holding that the assessee for the assessment year 1996-97 fulfilled the definition of the expression "charitable organization" in section 2(15). The first question of law would, accordingly, have to be answered in the affirmative. Section 11(1)(a) of the Act provides, inter alia, that income derived from property held under trust wholly for charitable purposes, to the extent to which such income is applied to such purposes in India ; and, where any such income is accumulated or set apart for application to such purposes in India to the extent to which the income so accumulated or set apart is not in excess of fi....