TaxTMI 
TaxTMI 
2023 (9) TMI 836
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.... the specified persons u/s 13(1)(c) read with section 13(3) of Income Tax Act, 1961. (b) That the applicant society is merely a closed group of individuals that pool money so as to cater to their materialistic and leisurely needs of only its member which definitely is not characteristic of an institution that exists on charitable lines. (c) That the assessee society is performing activities and services extended by a club. (d) That the appellant society has not been able to produce the books of accounts, bank statement, vouchers for verification of object and activities of the trust. (e) That the appellant society is not carrying out any activity of charitable nature. 2. That in any view of the matter and in any case, action of Ld. CIT(E) in rejecting the registration under section 12AA(1XbX) is bad in law and against the facts and circumstances of the case and is contrary to the principles of natural justice as the impugned order has been passed without granting adequate opportunity of hearing. by recording incorrect facts and findings and the appellant ought to have been granted benefit of registration under the law. 3. That t....
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....ion, company or association or with any public authority which may seen calculated to further any of the objects of the Association and to obtain any rights or privileges which may seem conducive to any of the objects of the association. j) To grant salary, allowances, gratuities, bonus, contributory or otherwise to persons who are or have been in employment of the Associations. K) To take such steps by personal or written appeals, public meeting or otherwise, as may from time to time be demanded to be expedient for the purpose of procuring contributions, annual subscriptions or otherwise. l) To establish and support and to aid in the establishment and support of any other Association formed for all or any of the objects of this Association. m) All the income, earnings, moveable immovable properties of the Association shall be solely utilized and applied towards the promotion of its aims and objects only as set forth in the Memorandum of Association and no profit or part of there shall be paid or transferred directly or indirectly by way if dividends, bonus, profit or in any manner whatsoever to the present or pair Members of Association. No memb....
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....iation (infra), we have seen that the activities need not be for the whole world or for all the people of the country or all the people of state. If the society exists for benefit of a large number of people but not for identifiable persons, the criterion of the residuary clause of general public utility is satisfied. (iv) The society institute is undertaking a lot of activities which are similar in nature to the activities performed by a club. The relevant point is whether the objects are charitable in nature. It is possible some clubs are performing the same activities as the assessee-institute but that does not come in the way of its being a charitable institution. (v) All activities are routed through contractors and no money or expenditure is recorded in the income and expenditure account. It is submitted that either the activities could be performed by the governing board or board may get the activities conducted through third party vendors. This does not make any difference as long as the activities are genuine and they are in pursuance of objects of the institute. (vi) The funds of the society are channelized for the benefit of p....
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.... club. 7. We find that the ld. CIT(E) had observed that the assessee institute could not produce books of accounts and vouchers and therefore, genuineness of activities could not be verified. In this regard, we find that the entire audited annual accounts of the assessee institute had been furnished for Asst Years 2014-15 to 2018-19 before the ld. CIT(E). Further we find that the books of accounts were indeed produced before the ld. CIT(E) as is evident from the order sheet noting dated 13.09.2018 enclosed in Page 272 of the Paper Book. Infact this is also evident from the reply letter filed by the assesesse on 09.09.2018 in tabular form wherein in response to query nos. 20 and 21, the assessee had replied that bank statements and books of accounts are produced for verification of the ld. CIT(E). However, the ld. AR before us fairly admitted that in view of voluminous vouchers, the vouchers could not be produced before the ld. CIT(E). The ld. CIT(E) granted only one day time to produce the vouchers and in view of huge volume, the same could not be furnished before the ld. CIT(E) on 20.09.2018, on which date the order rejecting the registration was passed by the ld. CIT(E). In ou....
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....f his membership. We also find that the memorandum of association and its rules and regulations contained a clause on 'dissolution' wherein it is provided that the dissolution of the association and disposal of the property on dissolution will be done in accordance with provisions of section 13 and 14 of the Societies Registration Act, 1860. In this regard, it would be relevant to reproduce the provisions of Section 13 and 14 of Societies Registration Act, 1860 as under:- Section 13 - Provision for dissolution of societies and adjustment of their affairs Any number not less than three-fifths of the members of any society may determine that it shall be dissolved, and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient , provided that, in the event of any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the p....
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....vice. This object only promotes better understanding between the members of different services which will greatly assist in greatly enhancing operational efficiency in official work with better co-ordination and co-operation for the welfare of the nation at large. The next object of the assessee society is to upgrade the skills of civil servants, who are found wanting to discharge their official duties. This is again in the larger interest of the nation. The next object is to enhance the knowledge of civil servants about modern day developments in civil administration which would in turn enable them to compete globally and follow the universally recognized methods of administration in the true spirit of democracy, by means of dissemination of knowledge mutually. The next object is for maintaining libraries and information to facilitate study of civil administration. The next object is to maintain limited residential accommodation for members who come to participate in the activities of the institute and non-members who are invited to participate in the activities of the association. On a broader reading and understanding of the aims and objects of the assessee society, we find that....
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....bers of the Rana community. Such members of the Rana caste could not be regarded as having been introduced into that caste by consideration of their personal status as individuals. As a matter of fact that predominant contention and requirement of the clause defining 'beneficiaries' in the constitution of the assessee was the factum of their belonging to the Rana community of Ahmedabad. The common quality, therefore, uniting the potential beneficiaries into the class consisted of being members of the Rana caste or community of Ahmedabad whether as natives or as being admitted to that caste or community under custom or usage. The mere fact that a person of the Rana community who was not an original native of Ahmedabad had to prove his credentials according to the customs and usage of that community to get admitted into that community could not introduce a personal element. As regards the acceptance of such persons as members of the community or caste, according to custom and usage, it is well-known that whether a question arises whether a person belongs to a particular community or caste, the customs or usage prevailing in that community must play a decisive and vital part. ....