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TMI Blog1986 (2) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... hat this is a mutual society and its benefits are limited to members only who are employees in the organisation. The objects of the society includes sports, recreation, cultural activities and representation of bona fide grievances to the management besides other objectives like financial aid to members, development of co-operatives for the welfare of the members and scholarships for the children of the members. The ITO held that these objectives cannot be considered to be charitable. Further the benefits are to private individuals or a fluctuating body of private individuals. The relationship between the members is personal in nature and is attributable to the office in which they work. Further the objectives of the assessee cannot be with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that the amount was received as advertisement charges but not as voluntary donations. The above order was followed in the assessment years 1981-82 and 1982-83 by the AAC. Against the said orders the assessee has preferred these appeals. 4. The learned counsel for the assessee strongly urged that the society is a charitable one. Not only employees of S.R.M.T. but even a few others are also its members. The objects are charitable in nature. So its income is exempt under sections 11 and 12. Alternatively it is urged that the amounts received by way of advertisements for the construction of the office building of the association being voluntary donations are not taxable. The learned departmental representative supported the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned and in particular the Governments formed by, for and of the people is the employer, even if it is to be taken in a restrictive sense, and the employer is the representative of the public or the people. In the ultimate analysis, it is the public that is the employer; qui facit per alium facit per se and so, to the services rendered by the employees in the public employment the beneficiaries are the public. Testing, therefore, from that angle, the nexus which exists in case of private employment and which is of personal nature, cannot be said to be so in case of public employment. If that be so, in our judgment, the nexus in the case of public employment is its impersonal nature. In fact, we derive considerable assistance in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be considered is whether the amounts received by way of advertisement charges in its souvenir for the construction of the building could be considered as voluntary donations. In CIT v. Trustees of Visha Nima Charity Trust [1982] 138 ITR 564 (Bom.) the assessee received contributions by way of issue of advertisement space in the souvenir which advertisements were priced from Rs. 100 to Rs. 1,000. A general appeal was also issued to the public for the sale of tickets and advertisements. The assessee received Rs. 83,644 by way of advertisements. The amount collected was used for the purchase of ownership flats to have a permanent home for providing shelter to those who come to Bombay for short duration. On those facts, the Bombay High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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