2021 (6) TMI 988

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....tration under section 12A of the Income Tax Act, 1961 (for short "the Act"), the appellant filed this appeal. 2. Brief facts of the case, relevant for the disposal of this appeal, are that the appellant is engaged in the activity to promote welfare and recreational activities of the personnel (gazette, subordinate police officers, civilians and class IV employees of Delhi police) and the expenditure was to be incurred on articles of sports-indoor and outdoor games, cost of uniforms etc supplied to teams, magazines and periodicals, entry fee for tournaments, hiring of grounds, hiring, repair and purchase of furniture for the club, conveyance expenses incurred locally, entertainment (exclusive excursion trips), film shows, hiring of accomm....

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....ublic or section of public would be termed as charitable purpose. On this premise, ld. CIT(E) held that provision of benefit only to its members of Delhi police violates the provisions of section 2(15) of the Act, the compliance of which is mandatory for registration under section 12A of the Act. Application of the appellant was, accordingly, rejected. 4. Assessee therefore filed this appeal stating that the appellant is incorporated for promotion of welfare and recreational activities amongst the personnel of Delhi police which object fulfils the test of section 2(15) and the reasoning of the ld. CIT(E) that the appellant does not cater to benefit of general public or section of public is clearly misconceived as welfare of police person....

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.... or general public and, therefore, it violates the provisions of section 2 (15) of the Act. This is the sole basis for rejection of the request of the assessee for registration section 12A of the Act. Precisely this is the argument of the Ld. DR also. 7. In AP Police Welfare Case (supra), Hon'ble Andhra Pradesh High Court considered a similar question in the light of the decision reported in Oppenheim vs. tobacco securities trust Co Ltd (1951) 1 All ER 16, IRC v. City of Glasgow Police Athletic Association (1953) 1 All ER 747 (HL), and Ahmedabad Rana Caste Association vs. CIT (1971) 82 ITR 704 (SC) and held that insofar as public employment is concerned and in particular the government formed by, for and of the people is the employer, ev....