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TMI Blog1985 (3) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... tries allied therewith or accessory thereto. The research and other scientific work will include research and scientific work in, among others, the following directions.: (i) To promote increase of knowledge regarding the science and practice of sugar technology, including sugarcane cultivation and other kindred branches of this industry; (ii) Investigation into the usability and the manufacture and improvement of materials used in the sugar industry and other trades or industries allied therewith; (iii) Investigation into the method of utilisation of the products and the bye products of the sugar industry; (iv) Investigation into the improvement of various machinery and appliances used by the sugar industry and other trades or industries allied therewith and developing new machinery and appliances for manufacturing, testing and recording purposes, and; (v) Investigation into the improvement of various process of manufacture with a view to securing greater efficiency, rationalisation and reduction of costs. (b) To establish, equip and maintain laboratories, workshops, factories, farms, research stations or any of them or all of these and conduct and carry on experiments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signs or standardisation marks, whether for general or special purposes, with a view to use thereof by members of the Association and others upon such terms as may be expedient and to develop, perfect and test the value of such inventions, improvements, processes and designs by manufacturing, exhibiting and placing on the market any article or substance to which the same may be capable of application; (f) To apply to the Government, public bodies, urban/local municipal, district and other bodies, corporations, companies or persons for and to accept donations in money or in kind, subscriptions and raise loans or collect money by any other suitable or collect money by any other suitable means with a view to promoting the objects of the Association and to discuss and negotiate with Govt. Departments, public and other bodies, corporations, companies, or persons scheme or research and other workers and matters within the objects of the Association and to conform to any proper conditions upon which such grants and other payments may be made; (g) To arrange meetings, lectures and discourses for discussing technical matters, for the advancement of technical matters, for the advancement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are not entitled to participate in the surplus, the institution cannot get the benefit of mutuality. The argument that the institution has been established for advancement of sugar trade and industry in general and thus the fruits of research made by the institution are available to all interested persons was also rejected. The ITO thus held that income of the institution is liable to be taxed under the provisions of the IT Act. 5. The assessee being aggrieved by the order of the ITO went in appeal before the AAC. 6. The AAC took note of the facts that the assessee s income was exempt under s. 10(21) of the IT Act upto the asst. yr. 1978-79 and the certificate under s. 80G was also issued to it. The AAC held that the primary and dominant object of the assessee-association is to promote knowledge regarding the science and practice of sugar technology, including sugarcane cultivation, etc. The other incidental objects are to look after the interest of the members of the Association, to bring about a standard of professional etiquette, better employment conditions and a general betterment of their knowledge. 7. We have gone through the constitution of the association. The memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd subjects dealt therein enable the technologist to acquaint themselves with latest techniques adopted in the sugar industries. It helps the industries to improve its efficiency and it results in reducing the cost of sugar. The consumer and the general public are the beneficiaries of research as the research leads to reduction in the cost of production covered in consumer price and improvement in quality. Similarly, seminars are held on important topics. These details are given on page 15 of the paperbook. So far the association has held 55 seminars. The association has published special reports in details. 10. Looking at the objects and actual functioning of the association, there cannot be any doubt that the objects do constitute charitable purpose within the meaning of s. 2(15) of the IT Act. No benefit can be said to be restricted only to the members. All the clauses should be read together and if so done, the main object is to include research and scientific work in sugar industry and all other objects are incidental. Any benefit if at all stated to be in the Supreme Court (sic) in the case of CIT vs. Bar Council of Maharashtra (1981) 130 ITR 28 (SC). 11. In view of the a ..... 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