TaxTMI 
TaxTMI 
2013 (5) TMI 470
X X X X Extracts X X X X
X X X X Extracts X X X X
....titled for Registration under Section 12AA of the Income Tax Act? 2. The assessee Gowri Ashram, Tiruvottiyur, Chennai is a society, registered under Tamil Nadu Societies Registration Act, 1975. The assessee society is governed by a Scheme Award framed by the District Court, Tiruvallur. The assessee Trust filed an application for registration under Section 12AA of the Act. In the said proceedings, the Director of Income-tax (Exemptions) noticed from the assessee's income and expenditure account that it had offered income under the head rental income from the shops let out as well as it got certain collections from the Kalyana Mandapam owned by it. Before the DIT (Exemptions), the assessee claimed that the main object of the Society is to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y carried on by the assessee is not towards charitable purpose and in coming to the said conclusion, Tribunal erroneously noted the Article set out in the Scheme award relating to the running of the choultry alone and erroneously arrived at the conclusion that the objects are targeted towards a particular community alone. According to the assessee society, the bye-laws of the society make it apparent that the objects are more diverse without restrictions and specifically deal with relief to the poor. The learned counsel further submitted that the Tribunal erred in coming to the conclusion that the objects of the assessee do not include any relief to the poor and there is no activity carried on by the appellant in the said direction and the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in this Scheme shall mean and include the choultry known as GOWRI ASHRAM in the Village of Thiruvottiyur, Chenglepat District, together with its compound, appurtenant buildings and structure and all endowments attached thereto. 7. The administration of the Choultry Gowri Ashram is governed by the Scheme Award. The objects of the assessee society and use of the choultry is provided in Clause 18, which reads as under:- The object and use of the Choultry is to provide accommodation and facilities for the performance of marriages and all other auspicious functions of the members of The Telugu Beri Vysia Community primarily and also for the performance of similar auspicious functions by other Hindus. By reading of Clause 18, it is clear....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons of a particular community is not covered by the definition of charitable purpose within the meaning of Section 2(15) of the Income-tax Act. 10. The contention of the appellant is that the Tribunal erroneously noted Clause 18 in the Scheme Award, which relates to the running of the Choultry alone and erroneously reached the conclusion that the objects are targeted towards a particular choultry alone. There is no merit in the contention of the appellant that Clause 18 of the Scheme award relates only to use of the choultry. As pointed out earlier, in paragraph No.6, as per clause 1 and 2(1) of the Scheme award, the word choultry ,wherever it occurs in the Scheme shall mean and include the choultry known as Gowri Ashram .i.e., Choultry ....