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TMI Blog2009 (7) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... , on6th Sept., 2004. This application was accompanied by details like registration certificate of the society, balance sheet as on16th Aug., 2004, memorandum of the society and rules and regulations of the society, etc. The objects of the assessee society, as declared in the memorandum are as follows: (a) To establish and run all types of educational institutions. (b) To provide help to deserving students in the form of stipend, scholarship, cost of books, etc. (c) To establish and assist schools for the blind, the deaf and the dumb. (d) To establish libraries and reading rooms. (e) To publish books, monographs, periodicals. (f) To arrange lectures, seminars, symposiums, etc. (g) To establish hostels for students, working women and others. (h) To establish, run and assist all types of research projects in the field of education. (i) To establish and run all types of educational institutions for women. (j) To take over the management and control of any educational institutions. 4. The learned CIT observed that a bare reading of the objects of the assessee society revealed that its objects were general and were not specific in nature; that especially, the objects mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstructive work in the advancement of the aims and objects of the society. A special member would have all the power as a member without paying any membership fee. An individual member could be given special membership of the society by the executive committee of the society. The executive committee could nominate at the most two special members. The term of the special member would be of 1 year duration. All such members would be appointed by the executive committee and would have all the powers, like those exercised by the other elected members of the society. The duration of the special membership could be extended or reduced by a solution of the executive committee by a 2/3rd majority at anytime, in the interest of the society. (d) Patrons: Any responsible person(s) who can enhance the financial position to promote the aims and objects of the society could be promoted as patron/chief patron of the society by the executive committee of the society by a 2/3rd majority. The CIT observed that thus, the organizational structure of the society, as given in its registered instrument, vested full power in the hands of its promoter members and it even allowed the transferring of member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the constitution of the society, the purposes of the society could not be held as charitable; that the object of establishing such an institution with the stated dominant objects was a social club and charity should not be extended to it; that the rules of the society had been framed with the suo motu of giving benefit to only its members, which was against the spirit of Co-operative Societies Act; that funds were collected coercively for giving admission; that these funds were not accounted for as income receipts of the organization and were pocketed by their trustees in their personal expenses; that the assessee society had purchased a piece of land near Village Morta; that the source for the purchase price thereof had been furnished as loans; that the AOs had been asked to confirm such loans; that the assessee had submitted an application for granting exemption under s. 80G of the IT Act simultaneously; that in the course of proceedings concerning with application, the assessee had objected to the enquiries being carried out; that s. 12AA of the IT Act enacted to provide for a procedure to be followed for grant of registration to a trust or institution; that on enquiry, it had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessee's objects. Assessee paper books 85 and 88 are notes on the assessee's activities. Assessee paper books 11 and 12 are a copy of the order whereby the assessee's claim for exemption under s. 80G of the Act was rejected. Assessee paper books 35 to 57 are the assessee's reply to the questionnaire issued to it. Assessee paper books 40 to 44 are the approval of the Uttar Pradesh Government. The assessee has relied on the following case law: (i) People Education & Economic Development Society (PEEDS) vs. ITO (2006) 104 TTJ (Chennai)(TM) 467 : (2006) 100 ITD 87 (Chennai)(TM); (ii) Jyoti Prabha Society vs. CIT (2003) 81 TTJ (Del) 942 : (2003) 87 ITD 126 (Del); (iii) Smt. Mansukhi Devi Bihani Jan Hitkari Trust vs. CIT (2004) 83 TTJ (Jd) 763 : (2005) 94 ITD 1 (Jd); (iv) Acharya Sewa Niyas Uttaranchal vs. CIT (2006) 105 TTJ (Del) 761; (v) Sanjeevamma Hanumanthe Gowda Charitable Trust vs. Director of IT (Exemption) (2006) 203 CTR (Kar) 533 : (2006) 285 ITR 327 (Kar); (vi) Medical Accident Prevention Society vs. CIT (2005) 194 CTR (Ker) 475 : (2005) 278 ITR 165 (Ker); (vii) St. Don Bosco Educational Society vs. CIT (2004) 84 TTJ (Lucknow) 805 : (2004) 90 ITD 477 (Lucknow) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its memorandum: (a) To establish and run all types of educational institutions; (b) To provide help to the deserving students in the form of stipend, scholarship, cost of books, etc.; (c) To establish and assist schools for the blind, the deaf and the dumb; (d) To establish libraries and reading rooms; (e) To publish books, monographs, periodicals; (f) To arrange lectures, seminars, symposiums, etc.; (g) To establish hostels for students, working women and others; (h) To establish, run and assist all types of research projects in the field of education; (i) To take over the management and control of any educational institution. 11. A perusal of the above objects of the assessee society shows that its objects are to establish and run all types of educational institutions, to provide help to deserving students, to establish libraries and reading rooms, to publish books, to arrange lectures, to establish hostels for students, working women and others, to establish, run and assist all types of research projects concerning education and to take over the management and control of any educational institution. One of the objects of the society is also to establish and assist sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding of the society are on and are scheduled to be completed by the end of March, 2005. 13. The assessee had sought exemption under s. 80G of the IT Act. This, however, was denied. The application of the assessee was rejected vide order dt.22nd March, 2005by the CIT; that the order has not been appealed against by the assessee. The assessee did not make any payments attracting the provisions of s. 13(3) of the IT Act. It did not incur any expenditure on establishment and on administration. Apropos the unsecured loans, the assessee provided confirmations from all the donees, along with details including their PANs. True, the management is by the members of the same family, but this does not act in any manner detrimental to the assessee who have registered the society. It also does not matter that some of the members are practising chartered accountants. In response to the questionnaire issued to the assessee, the assessee vide reply dt.7th March, 2005furnished all the requisite information. Vide letter dt.11th Feb., 2005, the Uttar Pradesh Government has granted 'no objection' regarding LL.B. course under the Bar Council of India to the assessee's Reliable Institute of Law (Ghaz ..... X X X X Extracts X X X X X X X X Extracts X X X X
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