TaxTMI 
TaxTMI 
2018 (3) TMI 84
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....gated Box Manufacturing Association". After the bifurcation of the State of Telangana from Andhra Pradesh in 2014, the assessee society was formed and it filed application in Form No.10A and in Form No.10G on 30.03.2016 seeking registration u/s 12AA of the Act and approval u/s 80G of the Act respectively. The assessee was asked to produce its original Trust Deed for verification and on production of the same, the CIT (E) went into the following objective clauses of the assessee and observed that they are for the mutual benefit of Corrugated Box Manufacturers Association Members. "2. I have gone through the information filed by the society. Some of the objective clauses are mentioned as under: (A) To establish or to assist ....
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....c charitable trust" Therefore, he came to the conclusion that there is no "advancement of any other objects of general public utility" by the assessee as required u/s 2(15) of the Act. Therefore, he held that the assessee cannot be considered as a public charitable trust and rejected the application for registration u/s 12AA as well as u/s 80G of the Act. Aggrieved, the assessee is in further appeal before us. 3. The learned Counsel for the assessee, Shri K.A. Sai Prasad, has filed before us the copy of the registration granted to the Andhra Pradesh Corrugated Box Manufacturing Association vide orders dated 18.08.2008. He submitted that the assessee is only formed out of the said organization on bifurcation of the State and since the ....
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....rt Silk Cloth Manufacturers Association (Supra). The Hon'ble Supreme Court held that where the dominant and primary object of the assessee is to promote commerce and trade in art silk yarn etc., it is charitable and the other benefits which are incidental in carrying out the main or primary purpose of the assessee, would not make it not charitable. This finding was reiterated by the Apex Court in the case of CIT vs. Andhra Chamber of Commerce (1965) 55 ITR 722) by holding that the Chamber of Commerce did not cease to be charitable merely because the members of the chamber were incidentally benefitted in carrying out its main charitable purpose. 6. The Hon'ble Bombay High Court in the case of DIT (E) vs. Bharat Diamond Bourse, rep....
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.... Nadu Small & Medium Industries Mutual Association (Supra). Even in the case of Ahmedabad Rana Caste Association vs. CIT (cited Supra), the Hon'ble Supreme Court has held that the objects of such an institution are charitable in nature. The relevant para is reproduced hereunder: "It is well-settled by now that an object beneficial to a section of the public is an object of general public utility. To serve a charitable purpose it is not necessary that the object should be to benefit the whole of mankind or all persons in a particular country or State. It is sufficient if the intention to benefit a section of the public as distinguished from a special individual is present. In the instant case, what had to be seen was wh....