TaxTMI 
TaxTMI 
2021 (2) TMI 235
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....tion for registration under Section 12AA of the Income Tax Act, 1961 on 02.04.2007 claiming it as a Charitable Institution on the ground that the object and service rendered by the assessee are in the nature of general public utility. The Commissioner of Income Tax rejected the application on 22.10.2007 on the ground that the assessee is not involved in any charitable activity to qualify for registration under Section 12AA of the Income Tax. Aggrieved over the same, the assessee preferred an appeal before the Income Tax Appellate Tribunal and the Tribunal held that all the requisite conditions are satisfied and directed the Commissioner to grant registration under Section 12AA to the assessee following the decision of the Gujarat High Court....
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.... year in which the application was made. 5.Countering the submissions made by the learned senior standing counsel appearing for the appellant, the learned counsel appearing for the assessee submitted that the Tribunal, following the decision of the Hon'ble Gujarat High Court, rightly decided the issue in favour of the assessee. The learned counsel relied upon the judgment of the Hon'ble Gujarat High Court dated 31.07.2006 made in Tax Appeal No.1433 of 2005 [CIT Vs.Gujarat Maritime Board], which reads as follows: "... Maintenance and Development of Ports is necessary for transport of goods and persons by sea. In the present scenario of globalisation of the trade and industry, the transport of goods from one count....
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....hich is mostly by sea, has become essential. Therefore, development and maintenance of Ports are of 'general public utility'. It is also not in dispute that the assessee institution is genuinely engaged in the activities of development and maintenance of Mormugao Port. Therefore, the assessee duly fulfills both the conditions u/s.12AA which are necessary for the registration of the institution u/s.12A. The predominant objectives of MPT being charitable in nature, we are unable to agree with the view taken by the CIT Panaji that the assessee is not eligible to be registered as an institution within the meaning of Sec.12A of the Act. Since all the requisite conditions are satisfied, we direct the CIT to register the Mormugao Port Trus....
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....en if public welfare is intended to be served. If the primary purpose and the predominant object are to promote the welfare of the general public the purpose would be charitable purpose. When an object is to promote or protect the interest of a particular trade or industry that object becomes an object of public utility, but not so, if it seeks to promote the interest of those who conduct the said trade or industry [Commissioner of Income-tax Madras v. Andhra Chamber of Commerce, - (1965) 55 ITR 722 SC]. If the primary or predominant object of an institution is charitable, any other object which might not be charitable but which is ancillary or incidental to the dominant purpose, would not prevant the institution from being a valid charity-....
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....ritime Board is under legal obligation to apply the income which arises directly and substantially from the business held under trust for the development of minor port in the State of Gujarat. Therefore, they are entitled to be registered as "Charitable Trust" under Section 12A of the 1961 Act." In the above judgment, the Hon'ble Supreme Court interpreted the words in Section 11(15) namely "any other object of generally public utility" and held that advancement of any object of benefit to the public or a section of the public as distinguished from benefit to an individual or a group of individuals would be a charitable purpose. Further, the Apex Court held that the said expression would prima facie include all objects which promote t....