TaxTMI 
TaxTMI 
2013 (12) TMI 947
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..... However, after pointing out that the "activities conducted by the assessee are basically aimed at improving the knowledge and competence of its members and that the society is not engaged in any charitable activity and further pointing out that, it is also hit by the amended provisions of Section 2(15) of the Act, the said application was rejected by the then Director of Income Tax(Exemptions), vide his order in F No.DIT(E)/Hyd/12A/25(04)/1l-12 dated 31.10.2011. 3. Being aggrieved by the said order of the DIT(E), the assessee has filed an appeal before the' Hon'ble Income Tax Appellate Tribunal (ITAT in short), Hyderabad. After considering the assessee's submissions, the Hon'ble ITAT, while stating that the DIT(E) has n....
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....of IEEE designated fields Electrical and Electronics Engineering and the maintenance of his professional standards among its members 2. Holding technical and professional lectures, seminars, conference discussions and such programmes as are necessary for exchange knowledge and continuing education and thereby to contribute and promote long- term professional development of members 3. To endeavor to promote understanding of the influence of technology and work for welfare of public at large by organizing special technical programmes." 6. From the aforementioned objects, it may be noticed that though in the object clause-3, there is reference to make endeavour to promote understanding of the influence of technology for we....
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..../- and Rs. 4,32,911, respectively. Further, while clarifying about funds, in the case of the society, under Articles of Association, it is stated that, the funds of the society shall consist of Membership fee, Grants and Donations from various sources. Thus, there is no reference to any programme revenue in that clarification given in the articles of association of the assessee-society. He observed that income from programme revenue derived by the society during each year, is not as per the objects of the society, he also mentioned that, under section 12AA(3) of the Act, it says that registration granted to a trust or institution can be withdrawn, when the CIT finds that the activities of that trust or institution are not genuine or are not....
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.... enquire about the activities. However, where no activity is commenced, the question of making any enquiry regarding any activity by the DIT(E) would not arise. The nature of enquiry would depend on the facts of each case. Hence the contention of the AR that scope of the DIT(E) is limited to ascertaining only whether the objects are charitable or not cannot be accepted. 12. The next question for our consideration is whether on the facts and in law, the registration u/s. 12AA of the Act can be refused to the assessee. For the purpose of sections 11 and 12, the word "charitable purpose" has been defined in section 2(15) of the Act which reads as follows: "Charitable purpose" includes relief of the poor, education, medical relief, ....
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....ief, the requirement of the definition of 'charitable purpose' would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution." 14. At this stage it is also pertinent to note that the clause "not involving carrying any activities of profit" were omitted from this definition by the Legislature by Finance Act, 1983 w.e.f. 1st April, 1983. Therefore, after such omission, the element of profit cannot be excluded from the definition "charitable purposes". u/s. 2(15) of the Act. 15. The above view is also supported by the Legislative intent disclosed in section 10(22) wherein it has been clearly provided that income of any activities ....