2004 (9) TMI 79

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....er the deed are charitable and it is entitled to registration under section 12A of the Income-tax Act, 1961 (for short "the Act"). The Commissioner of Income-tax by his order dated August 10, 1998, rejected the said application. The petitioner challenges the said order in this writ petition. Sri P. Balachandran, learned counsel appearing for the petitioner, took me to the deed (exhibit P8) and brought to my notice the preamble which contains the objects and submitted that the objects are purely charitable. Counsel further submitted that the Commissioner of Income-tax was carried away by the powers of the society and had mixed the objects with the powers and with reference to the provisions of clauses 7.4 and 8 came to the conclusion that....

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.... principles laid down by the Supreme Court and other courts in the matter. Sri P.K. Ravindranatha Menon, senior counsel for the Central Government appearing for the respondents, on the other hand submits that, the petitioner had produced the deed containing the bye-laws of the society, as per which the only object was to protect the erring professionals, who are members of the society from action under the Consumer Protection Act and under other enactments for professional negligence or misconduct. Senior counsel further submits that the Commissioner of Income-tax after due consideration of the terms of the deed rightly came to the conclusion that the society is not one which exists for charitable objects and that the object as per the d....

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....ified when it made the amendment to the memorandum and bye-laws, in substance the object of the society practically remains the same, that is, to defend its members from consumer disputes. With this view in mind, the Commissioner of Income-tax has considered the various clauses in the deed and came to the following conclusions: "The society is not one existing for charitable object. It is not existing for an object of general public utility or meant for general public. The services of the society are limited to its members and it is meant to defend actions initiated under or in relation to consumer protection laws or criminal laws, such action arising as a result of medical practice. It is meant to defend actions initiated by the Governm....