TaxTMI 
TaxTMI 
2018 (4) TMI 1198
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....d an appeal before the Tribunal which has restored the matter to the file of DIT (E) with direction to pass a speaking order. In the second round of litigation, CIT (E) declined the grant of registration u/s 12A of the Act on the ground that ATPA is aiming at industry status for TPA business and is working for mutual benefit of its members. 3. Feeling aggrieved, the applicant/assessee has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Applicant registered as a public charitable trust known as ATPA has the following aims and objects :- "6. The aims and objects of the Trust shall be : (i) To organize and arrange all licensed Third Party Administrators (TPAs) to be members of the Trust for mutual betterment of the TPA business; (ii) To thrive for an industry status for TPA business; (iii) To draft guidelines, procedures, documents for implementation of the above; (iv) To organize seminars, training and educational sessions....
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....ust; (xix) To offer awards, prizes, scholarships and stipends in promotion of the aims and objects of the Trust; (xx) To provide need-based grants and donations; (xxi) To cooperate and collaborate with other national institutions and agencies in furtherance of the objectives of the Trust; (xxii) To cooperate with institutions and associations having similar aims and objects; (xxiii) To borrow moneys for carrying out the objects of the Trust and for that purpose to create security by mortgage or charge or pledge or hypothecation of any immovable property of the Trust; (xxiv) To establish any fund to further the interest of the Trust; (xxv) To establish an institute for training and dissemination of knowledge among Third Party Administrators; (xxvi) To undertake programmes which ensures raising of income levels and expanding employment opportunities of the weaker sections of Trust, particularly of those living below the poverty line and women by involving participants in the planning, implementation and maintenance of activities taken up; (xxvii) To organise disadvantaged section of Trust and take steps for increasing their level of awareness with regard to....
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....ith various regulatory and other public and private sector bodies for promoting health related and other beneficial schemes for people in general and those below the poverty line and also participate in implementation of such schemes; to promote education, research, training and professional development on health relates issues, to provide need based grants and donations; to promote national unity and international peace and amity; to aim towards social harmony and brotherhood, to undertake evaluation of economic and social projects. 7. When we examine the aforesaid aims and objects of the assessee trust in entirety in the light of the fact that the applicant is one TPA out of 28 TPAs appointed by Insurance Regulatory Development Authority (IRDA) and its activities are to be percolated down to the public at large. 8. In the identical facts and circumstances of the case, Hon'ble Rajasthan High Court in case cited as CIT vs. Jaipur Stock Exchange Ltd. - (2015) 377 ITR 469 (Raj.) held stock exchange entitled to exemption u/s 2(5)(11) by holding as under :- "Held, that the Jaipur Stock Exchange Ltd. was a company registered as charitable trust under section 12A of the Income-tax Ac....
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.... Chamber. The Tribunal is not justified in taking the view that the assessee, which is a chamber of commerce and industry, is carrying on business activities, which require compliance with the conditions of s. 11(4A). In most of the cases, the services are performed in the true spirit of service to the members of the association (such as a chamber of commerce) and the fees charged are so calculated or fixed that it merely covers the costs incurred by the association in rendering the service. Since accuracy in matching the costs and the fees charged cannot be maintained consistently, there can arise a surplus. The mere arising of a surplus does not clothe the activity of performing the services for the members with a profit motive, which is essential in business. -Addl. CIT vs. Surat Art Silk Cloth Manufacturers Association (1979) 13 CTR (SC) 378: (1980) 1211TR 1 (SC) relied on." 11. Hon'ble Apex Court in case cited as CIT vs. Andhra Chamber of Commerce - (1965) 55 ITR 722 (SC) defined the charitable purpose for a trust under the Income-tax Act as under :- "That the expression "object of general public utility" was not restricted to objects beneficial to the whole of mankind. An....