TaxTMI 
TaxTMI 
2004 (11) TMI 629
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....en the following grounds of appeal:- "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax has erred in rejecting the application of assessee filed u/s 12A(1) of the I.T. Act 1961 thereby refusing to grant registration to assessee u/s 12AA of the I.T. Act, 1961. 2. It is therefore prayed that the above action of learned Commissioner of Income Tax in refusing to grant registration u/s 12AA of the I.T. Act may kindly be held to be invalid and registration may kindly be directed to be granted to assessee. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 3. At the outset, we observ....
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.... entry fees of Rs. 5,000/- and had also fixed annual member's dues, which further demonstrated that the activities of the trust were primary of "mutual nature", limited to it's members and not for public charitable purposes. The Ld. CIT(E) further observed that since the assessee / applicant trust has not been registered as a charitable trust with the Charity Commissioner or any other competent authority and has admitted to being an "association or person" which further disqualified the applicant trust from the benefits of Section 12AA of the Act. Accordingly, Ld. CIT(E) held that given the fact that the trust's activities were not for charitable purposes, and were governed by the principle of mutuality, the application for grant of registr....
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....ounsel for the assessee submitted that looking into the instant facts, Ld. CIT(E) has grossly erred in facts and in law in denying grant of registration under Section 12AA of the Act. 8. In response, Ld. D.R. submitted that Ld. CIT(E) has correctly observed that the assessee has been charging both admission fees as well as compulsory annual membership fees which clearly goes on to demonstrate that the assessee is not engaged in carrying on any charitable activities. Ld. D.R. placed reliance on the observations made by the Ld. CIT(E). 9. We have heard the rival contentions and perused the material on record. 10. We observe that in the case of Panchkuva Cloth Merchant Association vs. CIT(E), Ahmedabad 128 taxmann.com 391 (Ahmedabad -....
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....n the trust is not created under an instrument it is impossible to produce any constitutive document hence the rule requires production of evidential documents i.e. the document evidencing the creation of trust. We observe that specific evidential documents furnished by the assessee in the paper book as referred above in this order has not been verified and examined by the ld. CIT(Exemption) in the context of evidential documents. In view of the above facts and circumstances, we would deem it proper to set aside the impugned order to the file of the ld. CIT(Exemption) for deciding afresh after considering the specific documents placed in the paper books as referred above. Therefore, we restore the issue to the file of the ld. CIT (exemption....
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....onditions for falling under head 'charitable purpose' as defined under section 2(15) of the Act. 12. In the case of Fertilizers Association of India 99 taxmann.com 387 (Delhi), the High Court held that that mere charging of fee from members or non-members for rendering services like training, conducting seminars would not ipso facto lead to denial of exemption when the dominant object of the assessee remained charitable and the aforesaid activities were only incidental to the main activity of the assessee. 13. In the case of Confederation of Pharma Dealers Association 137 taxmann.com 117 (Raipur - Trib.), the where assessee-society was engaged in promotion of trade and commerce related to pharma business and protecting rights ....