TaxTMI 
TaxTMI 
2023 (7) TMI 459
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....TK/2017 for assessment year 1997-98 and 2011-12. He submits, the Commissioner of Income Tax (CIT) Exemption correctly appreciated the position emerging on earlier application of the assessee rejected by order dated 26th May, 2017. The CIT(E) refused to grant registration mainly on the ground that funds of the assessee were diverted for personal benefits of the executives of the society, in violation of provisions of section 13 (1)(c) of Income Tax Act, 1961. Furthermore, receipts from Board of Control for Cricket in India (BCCI) were shown as corpus fund instead of treating them as revenue receipts. The CIT(E) had relied on survey operation under section 133A, conducted in premises of the assessee association along with search and seizure o....
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.... become academic. 3. Without prejudice he relies on judgment of the Supreme Court in C. I. T. (ADDL.) v. SURAT ART SILK CLOTH MFRS. ASSN., reported in (1980) 2 SCC 31, in particular a passage from concurring judgment of Pathak, J. (paragraph 31 of the report). Said passage from the paragraph is extracted below. "31. . . . The advancement of any other object of general public utility . . .". The object is not the purpose. The advancement of the object is the purpose. Harking back to the first three heads of charitable purpose, the definition defines purpose in terms of activity. When Sir Samuel Romilly, in the course of his argument in Morice v. Bishop of Durham summarized the main heads of charity, they included "relief of the i....
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....th "the advancement of any other object of general public utility" and not with "the object of general public utility". En passant, it may be observed that much confusion can be avoided if in the context of the fourth head the purpose of the trust or institution is referred to as the "purpose" and not as the "object" of the trust or institution, because the purpose there is defined as "the advancement of an object". 4. He then relies on view taken by High Court of Madras in Tamil Nadu Cricket Association v. Director of Income Tax (Exemptions) reported in (2013) 40 taxmann.com 250 (Madras). Paragraph 32 is reproduced below. "32. Thus in contrast to Section 12AA(1)(b) of the Income Tax Act, 1961, where the grant of registration re....
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....h and seizure, respectively of the assessee's premises as well as its honorary secretary. The tribunal in impugned order said, inter alia, as follows. "In view of the above, we find that, as in the instant case, it is admitted in the impugned order that the objects of the assessee society are charitable in nature and in absence of pointing out any specific activities of the assessee society which were not genuine, in our considered view, rejection of application for registration u/s. 12AA of the Act on the ground of diversion of funds for the benefit of executives of the association in violation of provisions of Section 13(1)(c) of the Act is not justified. The violation of provisions of Section 13(1)(c) of the Act is a matter whic....