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Issues involved: Interpretation of provisions u/s 12AA of the Income Tax Act, 1961 for registration of a corporation established under the Warehousing Corporations Act, 1962 as a charitable organization.
The judgment addressed the following substantial questions of law: 1. Whether the corporation, not being a trust or charitable institution, is eligible for registration u/s 12AA of the Act. 2. Whether failure to provide original documents and audited accounts affects eligibility for registration u/s 12AA. 3. Whether the corporation, deemed as a company under the Warehousing Corporation Act, can be considered for registration u/s 12AA. The assessee, a Corporation under the Warehousing Corporations Act, previously claimed exemption under Section 10(29) but applied for registration u/s 12AA after the provision's deletion. The Commissioner rejected the application citing profit-making activities. The Tribunal held that the corporation's main purpose was public utility, not affected by profit-making. The Tribunal's finding was based on the Supreme Court's judgment in Director of Income-tax v. Bharat Diamond Bourse. The appellant argued that statutory provisions of the Warehousing Corporations Act supported its charitable status under Section 2(15) of the Act. The corporation's functions aligned with public utility objectives, as per Supreme Court precedents in Bharat Diamond Bourse and Gujarat Maritime Board cases. The Court upheld the Tribunal's decision, emphasizing the corporation's statutory functions and public welfare objectives. Referring to the Supreme Court's observations in Gujarat Maritime Board, the Court reiterated that objects promoting public welfare qualify as charitable purposes. The Court ruled in favor of the assessee, dismissing the appeals based on established legal principles and precedents. The judgment concluded by dismissing the appeals, affirming the corporation's eligibility for registration u/s 12AA as a charitable organization under the Income Tax Act, 1961.
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