2009 (12) TMI 1016

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....d and record perused.  Facts in brief are that assessee company is registered u/s 12A of the Act with the main activity to promote the game of Golf in India.  In the return filed for the year under consideration, the assessee had declared casual membership fees.  The assessee was asked to furnish list of casual members and the fees charged from them and details of services enjoyed by them.  Vide letter dated 19.11.2008, the assessee has furnished full details of casual members, fees charged from them alongwith services enjoyed by them and receipts from the same.  The assessee also filed fee structure of the casual members.  The AO observed that fees charged from the casual members was much higher than the perma....

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....enure members were using.  The AO has declined fees received from the casual members as income u/s 12A, merely because assessee club was not maintaining separate books of account regarding this business activity.  As per AO, it was a business income and not income of the mutual interest that was not liable for exemption u/s 11.  There is no merit in the AO's action for treating the fees received from the casual members as business income.  The assessee club was maintaining required records with regard to income and expenditure.  There is no requirement of maintaining separate accounts with respect to the fees received from different kinds of members as provided in the article of association.  The assessee, Delh....

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....f the IT Act, its objectives listed should cover any one or all the following laid down principles:- (1) Object of general public utility with the meaning of Section 2(15) means that the benefit need not reach each and every person.  It is sufficient if it reaches a sizeable number of members of the public. (2) To serve a charitable purpose object should be to benefit the mankind and not the whole of mankind in a particular country or province. (3) The section of public which is expected to benefit should be well defined even though it does represent only a portion of the mankind. (4) The intention of providing the benefit to portion of the public as individual should be clearly spelled out. 6. Th....