TaxTMI 
TaxTMI 
2024 (12) TMI 1159
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....right to amend, modify or add any of the ground/s of appeal. 3. At the outset, Ld. AR of the assessee have placed his contentions along with written submission, comprises therein the list of various judicial pronouncement relied upon, the same are extracted as under: Chhattisgarh Steel Re-Rollers Association ITA No. 467/RPR/2024 (Assessee) Submission of assessee 1. By-laws: - i) Bye Laws of Society is at PN 35 to 44 of PB. ii) Objects at PN 36 of PB. 2. Reason given for rejecting application is: - i) No charitable activity is carried out and association not established for general public. ii) It exists to facilitate steel manufacturers and other stake holders, small group of members relating to steel manufacturers. iii) All India Steel Conclave organized at Hotel Mayfair, Raipur, aimed to create awareness in steel manufacturers, iron ore minors etc. for promoting business needs of steel manufacturers. Majority expenses incurred on transportation, boarding and lodging. 4. Association established to safeguard the interest of its members being steel manufacturers, address various issues arising in the course....
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....561 (SC) (para 10) and Shiva Shakti Sai Anugrah Mahapeetam vs DDIT (2014) 42 CCH 14 (Hyd.). 9. The event "All India Steel Conclave" organized by assessee once in a while. Aimed at welfare of the steel manufacturers, iron ore minors, coal traders etc. It was for general public utility. Summary of judicial pronouncement Shri Sarafa Association vs CIT (2007) 294 ITR 262 (MP) Application for registration u/s 12A was rejected against which writ petition was filed by the assessee. Vide para 5, Hon'ble High Court considered the ratio of decision in CIT vs Bar Council of Maharashtra (1981) 22 CTR (SC) 106 wherein it was held that trading bodies like Andhra Chamber of Commerce, Surat Art Silk Manufacturer Association have been held to be constituted with a view to advance an object of general public utility because their primary or dominant purpose was to promote and protect industry, trade and commerce, even though some benefit through some of their activities did accrue to their members and it was held in the case of Andhra Chamber of Commerce that income derived from diverse sources was exempt from tax liability u/s 11. Vide para 6, it noted the....
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....ty. The assessee was set up with the object to address national issues related to real estate sector and better standards for its all member association and therefore, it can be safely held that it is for the benefit of particular section of the public and not for any specified individual. ii) Vide para 9, it considered the objects of the association and observed that for attainment of its objects, the assessee had to carry out certain activities say holding conventions, exhibitions, meetings etc. and it was unable to comprehend as to how simply carrying on the same for the furtherance of the objects on a standalone basis would take the colour of trade, commerce or business. iii) Vide para 10, it observed that in the conventions, eminent personalities from various fields would be roped in for delivering lectures on issues having a material bearing on the real estate sector for which on an average fee/ charge was worked out of Rs. 30,000/- to 32,000/- which would include boarding and lodging facilities. It also considered the argument that displaying the advertisements during the conventions would again be a step towards furtherance of the objects of the assessee t....
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....ted that they were conducted to educate the members and appraise the latest development in Government laws and up-gradation in system of overall functioning of the construction industry, which is one of the objects of assessee. It was held by Hon'ble Tribunal as under: - i) Vide para 7, it was held that the nature of receipts received by the assessee shows that assessee carried out the activities as per its objects only and most of the receipts were received from the members. It is not the case of the Department that the activities were carried out for outsiders and for commercial purpose solely to earn business receipts. To be hit to proviso to sec. 2(15), the dominant object of general public utility should be in the nature of trade, commerce and industry. ii) Vide para 8, it considered the ratio laid down by Hon'ble High Court in Institute of Chartered Accountants of India vs DGIT (2011) 245 CTR (Del.) 541 and held that none of the receipts can be said to be arising from the activities which can be said to be for the purpose of business, trade, commerce. All the activities were carried out in accordance with the objects. iii) Vide para....
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....s Memorandum of Association are as under: "(i) To organize and unite the manufacturers of Steel Rerollers and people of similar business. (iv) To decide mutually the business dispute amongst the members. (v) To provide members as far as possible all the amenities and recreations. " 3- 0n perusal of above objects, it is evident that the 'Association' has not been established to undertake charitable activities for the General Public but has been established to facilitate steel manufacturers & other stockholders and it acts as a networking flatform for them. 4- As per the objects mentioned in the Memorandum of Association, the assessee has undertaken various activities. Most of the objects prescribe activities targeting only a small group of members which is restricted by profession related to steel manufacturers & other related stockholders. Even the activities are not related to charitable in nature rather these activities focus on business growth of the members. The core aim of the Association is to bring together all the stakeholders related to steel manufacturing for mutually benefit in their business activities. The objects me....
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.... FY 2022-23 S.No Summary of the expenses Amount 1 Advertisement Expenses 1663709 2 Branding expenses 241192 3 Co-partner expenses-Knowledge and marketing partner 2665620 4 Diary Expenses 110679 5 File expenses 29500 6 Food expenses 80764 7 Printer expenses 152810 8 Hotel expenses 9786560 9 Laptop Bag expenses 1272075 10 Management expenses 7738981.8 11 Momento and Art expenses 335496 12 Motivational speaker expenses 1770118 13 Photo expenses 349280 14 Pen corner 29267 15 Music expenses 30000 16 Travel Expenses 1693098 17 Other Misclleneous expenses 79111 28028260.8 --From above expense details, it is found that no expense is related to any charitable activity. All the expenses are incurred on arranging the event and for making arrangements for transportation, boarding and lodging of the attendees of the event. Some expenses are incurred on arranging gifts, momento, artefacts, photo, music, motivational speakers etc. which are all in non-charitable nature. 6-Further, during F.....
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....d to the Educational Improvement of the above objects. Provided that the Association shall not support with Its funds, or endeavour to impose on, or procure to be observed by its members or others, any regulation or restriction which, if on object of the Association, would make It a Trade Union. 8. While making the reference of the aforesaid objects of the assessee association, we find that the association is established for the purpose to organize and unite the manufactures of steel Re-Rollers and people of similar business and certain other connected / incidental / ancillary objects referred to (supra). In view of such objects, it can be safely gathered that the association is set up for safeguard of the interest of its members and to deal with matters having common interest of the trade. Now the question before us is, whether such objects shall be treated as trade, commerce and business and not the activities in the nature of charity. On this aspect, we find force in the contentions raised by the Ld. AR that there was no benefit derived by specified individual. As per law, the benefit is being given to a section of people. We may herein refer to the order of Hon'ble ....