2014 (4) TMI 1338

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.... (Exemption) has erred in not considering the assessee as eligible for registration u/s. 12AA. 2). The learned Director of Income Tax (Exemption), erred in stating that the object of the trust is not for general public utility and meant only for specific group of persons who invest through commodity exchanges. 3). The learned Director of Income Tax (Exemption), erred in stating that, as the institution squarely falls u/s. 10(23EC), the registration u/s. 12AA cannot be granted and has further erred in denying registration on the ground that such registration is not mandatory. 4). The Learned Director of Income Tax (Exemption) erred in refusing the Registration u/s 12AA especially when other Exchanges are allowed si....

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....l public utility for simple reason that it was meant for the benefit of specific persons who invested through specific stock exchange and not for general public, that a specific section had been provided in the Act for stock exchanges who wished to take benefit of section 11 and had to register itself as per the requirements of section 10(23EA),that those benefits were not open for general public at large, that it was not mandatory for institution to register itself under 12AA to reap the benefits allowed u/s.10(23EA),that the case of the institution squarely fell under section 10(23EA) the registration u/s. 12AA could not be granted, that merely because of the requirement of creation of fund under the provisions of Multi Commodity Exchange....

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.... and perused the material available on record. We find that in the case of MCX Stock Exchange Investors Protection Fund Currency Derivatives Segment Trust (supra) C Bench of the Mumbai Tribunal has held as under: "5. Having considered the rival submissions and careful perusal of the relevant record we note that the application for registration u/s 12AA has been rejected by the DIT (Exemption) on the following grounds: i) the activity of the assessee being carried out not for the object of the general public utility but meant for benefit for specific persons investing through specific Stock Exchanges. ii) that the assessee does not qualify as a charitable institution as it does not cater, for any public at large bu....