TaxTMI 
TaxTMI 
TaxTMI 
2013 (7) TMI 648
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....ction 80G(5)(vi) of the Income-tax Act, 1961 rejecting the application seeking renewal of exemption without considering that the appellant had been carrying on genuine activities of charitable purpose and his purported findings on that behalf are altogether arbitrary, baseless, unwarranted and perverse. 3. For that the learned Director of Income-tax (Exemption), Kolkata misread the objects of the appellant and considered issues which are not germane to the scope and ambit of the statutory provisions contained in section 80G(5)(vi) of the Income-tax Act, 1961 and his purported action of rejection of the application for renewal of exemption dated September 3, 2010 is highly unfair, unreasonable and unwarranted on the facts and in the circumstances of the instant case." The facts of the case are that the assessee is a society which is registered under the Societies Registration Act, 1860 on July 16, 1945. It was granted registration under section 12A of the Act by an order dated June 22, 2001 with retrospective effect from April 1, 1997, which is still subsisting. It was also granted exemption certificate under section 80G(5)(vi) of the Act by an order dated July 27, 2001 fo....
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.... utility" and thus falls within the ambit of the definition "charitable purpose" conceived in the provisions of section 2(15) of the Act. He further submitted that the Department has also not disputed that there is no profit element in such activities which are rendered to a section of the people, who are entrepreneurs in hosiery industry inasmuch as the assessee is not providing assistance to any specified individual but to the entrepreneurs in hosiery industry who constitute a class of people. According to him further, it is settled that charitable purpose includes not only relief to the poor, education and medical relief alone, but advancement of other objects of general public utility as well. Referring to the decision of the hon'ble Supreme Court in the case of CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC), learned counsel for the assessee submitted that to serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind of even all persons living in a particular country or province. It is sufficient if the intention is to benefit a section of the public as specified from specified individuals. He further submitted that t....
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....led copy of the memorandum of association on pages 34 to 38 of the paper book, indicating the objects for which the association is established, which are as under : III. The objects for which the association is established are : (a) To advance scientific, commercial and technical education in the hosiery trade and manufacture and to find and support establishments and institutions for such purposes. (b) To collect, classify and circulate information relating to trade, commerce and manufacture for the interest of its members or in short to do everything possible for the spread of scientific, commercial and economic knowledge relating to the hosiery industry. (c) To maintain a reading room and other recreation rooms to afford accommodation for meetings and gatherings of all descriptions whether social, commercial or otherwise and to let upon lease or otherwise the whole or any part of the property of the association for any of the above named purposes or otherwise. (d) To subscribe to any local or other charities and to grant donation for any public purpose and to provide a superannuation fund for the servants of the Association or otherwise assist such servants,....
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....ime to time be determined and to transpose of very such investments. (q) To undertake and execute any trust or any agency work which may seem directly or indirectly conducive to any of the objects of the association. (r) To amalgamate with any association or society having object altogether or in part similar to those of this association. (s) To take any action which may be conducive to the extension of trade and commerce of its members or incidental to the attainment of the objects of the association. (t) To subscribe, to become a member or to co-operate with any other association, whether registered or not whose objects are altogether or in part similar to those of this association and to procure from or communicate to any such association such information as may be likely to forward the objects of this association. (u) To take over the assets and liabilities and the rights and privileges of the present unregistered association known as The Bengal Hosiery Manufacturers' Association and to function in all respects in continuation of the unregistered association under the same name and style. (v) To do all such things as may be directly or indirectly c....