TaxTMI 
TaxTMI 
2015 (11) TMI 1278
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....e printers, traders, business service providers engaged in printing activities with a valid license to that effect by concerned authority situated in Karnataka and outside with the approval of the Committee. There are other clauses in Bye-laws which deals with the rights and duties of members and also the responsibilities of the Association like utilization, management of he assets and liabilities. The statement of income and expenditure has also been seen". 4. The DIT(E) further held that on the prima facie, the assessee does not fit into the frame of 'Charitable purpose" which includes relief of the poor, education, medical relief and preservation of monuments or places or objects of artistic or historic interest and the advancement of any other object of general public utility, as defined in sub-section 15 of sec.(2) of the IT Act, 1961. 5. The DIT(E) also stated that the assessee by letter dated 21-07- 2014 has furnished the half baked information without any evidence in respect of the genuineness of the activities of the trust as defined in subsec.( 15) of sec.2 of the IT Act, 1961. 5.1 The DIT(E)further pointed out that the objects and activities of the trust states ....
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....71) 82 ITR 704 and CIT Vs Ahmedabad Rana Caste Association (1985) 140 ITR 1(SC) pointed out that the law recognizes no purpose as charitable unless it is for a public charity. That is to say, a purpose must, in order to be charitable, be directed to the benefit of the community or a section of the community. The expression 'object of general public utility', however, is not restricted to the objects beneficial to the whole of mankind. An object beneficial to a section of the public is an object of general public utility. The section of the community sought to be benefitted must undoubtedly be sufficiently defined and identifiable by some common quality of a public or impersonal nature. 7.1 The ratio of the Apex Court decision was followed in the case of Hiralal Bhagwati Vs CIT 246 ITR 188. The society in this present case is for the benefit of the members who are engaged in printing and other related activities and has an object beneficial to the section of public who are associated with printing and would be an object of general public utility specified u/s 2(15) of the IT Act, 1961. 8. With respect to the second issue the decision of the jurisdictional High Court in the cas....
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....other consideration, irrespective of the nature of use or application of the income from such activity, or the retention of such income, by the concerned entity. This amendment will take effect from the 1sy day of April, 2009 and will accordingly, apply in relation to the assessment year 2009-10 and subsequent assessment years". 10. Hence, the proviso will hit only such case the organization is carrying on business activity with a profit motive in the garb of charitable purpose. It has been clearly established by various decisions that when the main object of the institution was 'charitable in nature', then the activities carried out towards the achievement of the said, being incidental or ancillary to the main object, even if resulting in profit and even if it is carried out with non-members, were all held to be 'charitable in nature'. The basic principle underlined the definition of charitable purposes remains unaltered even by amendment to section 2(15) of the Act w.e.f. 1.4.2009, though the restrictive first proviso was inserted therein. In the given facts of the case, the assessee's association's primary purpose was to give focus o areas of education, environment and eng....
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....services to its members, though treated as business income under section 28(iii) would still be entitled to the exemption under section 11 read with section 2(15) provided there is no profit motive. Thus, assessee being a charitable institution carrying on the object of promotion and development of trade and commerce and which was not involved in the carrying on of any activity in the nature of 'business', the said section 28(iii) does not apply. Apex Court in the earliest CIT Vs Andhra Chamber of Commerce (1965) 55 ITR 722 had clearly laid out the principle that if the primary purpose of an institution was advancement of objects of general public utility, it would remain charitable even if an incidental or ancillary activity or purpose, for achieving the main purpose, was profitable in nature. 4. Respectfully following the Co-ordinate Bench decision, we allow the assessee's appeal. 5. In the result, appeal filed by the assessee is allowed". 11. We have heard both parties and have perused the material on record. 12. Again, the Hon'ble Delhi High Court in the case of India Trade Promotion Organization Vs Director General of Income-tax (Exptns.) & Others (2015) 371 ITR....