TaxTMI 
TaxTMI 
2002 (4) TMI 28
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....licant-society under section 12A of the Income-tax Act, 1961. 2. This appeal has been admitted by the order of this court dated July 24, 2001, on the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that on the proper construction of aims and objects of the assessee-association as disclosed in its constitution fall within the purview of section 2(15) of the Income-tax Act so as to entitle the assessee-society to registration under section 12A of the Income-tax Act?" 3. The respondent-assessee is a society registered under the Rajasthan Societies Registration Act, 1958, in the name of "Jodhpur Chartered Accountants Society....
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....such it is not understandable as to what activities the said Jodhpur Branch will undertake that may make the society a charitable one. It is apprehended that if the test for charitable institution is applied liberally, many societies or trusts simply by high sounding words in the objects clause will succeed in getting exemption from tax under section 11 of the Income-tax Act. Learned counsel placed reliance on the decision of the Karnataka High Court in CIT v. BEL Employees Death Relief Fund and Service Benefit Fund Association [1997] 225 ITR 270, wherein it is held that if individuals, whose only common quality is their profession or vocation but can legitimately be invested with the attributes of a public nature, then every partnership, c....
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.... Maharashtra v. CIT [1980] 126 ITR 27 (Bom) (6) CIT v. Bar Council of Maharashtra [1981] 130 ITR 28 (SC) (7) Bar Council of Rajasthan v. CIT [1984] 147 ITR 720 (Raj); (8) CIT v. Ahmedabad Rana Caste Association [1983] 140 ITR 1 (SC); and (9) Ahmedabad Rana Caste Association v. CIT [1971] 82 ITR 704 (SC). 5. In order to consider the point germane to the controversy, it would be appropriate to make mention of the relevant provisions of law, i.e., sections II and 12A. Chapter III of the Income-tax Act deals with Incomes which do not form part of total income. Section 11 excludes income from property held for charitable or religious purposes of trust or institution from the total income of the previous yea....
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.... object of general public utility;" 8. From a reading of sections 11 and 12A, it is evident that at the stage of filing an application for registration, the Commissioner is required to examine whether the application is made in accordance with the requirements of section 12A read with relevant rules. He is further required to examine whether the objects of the trust or society are charitable or not. According to section 2(15) the expression "charitable purpose" has been defined by way of inclusive definition so as to include (a) relief of the poor, or (b) education, or (c) medical relief, and (d) advancement of any other object of general public utility. 9. It is well settled that in order that a pu....
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....biding citizens. The objects clause of the constitution emphasises to propagate and disseminate knowledge about the auditing, accounting, direct and indirect taxes by holding seminars, conferences and workshops, etc. The fruits of such seminars, conferences, etc., would be available to the public at large, thus, it appears that the society is not for the benefit of a small group of individuals and it is also not only for the benefit of members but to promote awareness and education of the commercial and tax laws for the general public without any profit motive. As observed by the Supreme Court, 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 country or State, ev....