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TMI Blog2006 (3) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee-Association, assessed as an AOP, and formed in the year 1937 for the promotion of the game of cricket in the areas falling within its jurisdiction, on distribution of mementos on the occasion of the Diamond Jubilee of the Association. 3. The Assessing Officer found, with reference to section 11(1)( a ) of the Income-tax Act, 1961 ("Act" hereinafter) that the said sum cannot be considered to have been applied to any charitable purpose, as it did not lead to the fulfilment of any object of general public utility, which, the promotion of the game of cricket, qualifies to be [so as to fall within the definition of charitable purpose in terms of section 2(15) of the Act], as the distribution of mementos to its members by the association ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be countenanced, least of all from the tax authorities. Towards this end, he also listed some case law; ( c )The concept of sanctity of book result was advanced, by placing reliance on the decision of the Apex Court in the case of Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273, wherein, in the context of MAT provisions, per which an alternate mechanism of charge of tax with respect to book profit stands legislated, it stands held that accounts being drawn in compliance of the governing Act, the Companies Act, 1956 in that case, the book results cannot be subject to further scrutiny for the purpose of application of the MAT provisions, i.e. , the Act, that being in the domain of the authorities under the respective law. 5. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e imported in the present case as in that case the term book profit stands defined with reference to the appropriate Chapter (Parts II and III to Schedule 6) of the Companies Act, while in the present case, the issue at large is whether the impugned act of spending the amount in the manner aforesaid did, in fact, fall within the object of the Trust. No doubt, the books of the association may also be audited under the provisions of the governing statute (Bombay Public Trust Act, 1950), but there is nothing on record to suggest if the same stands examined with reference to the provisions of the same; the relevant audit report obtained thereunder; if this matter stood reported and examined by the competent authority constituted thereunder, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led it to serve/achieve the stated purpose of its existence. In honouring its members, on whose largesse, both pecuniary and non-pecuniary, the association thrives, its Managing Committee was only, to our mind, on a befitting occasion, acknowledging their contribution towards its cause, i.e., the promotion of cricket. The Association, as a running concern, did require the continuous support of its members, as well as to attract new membership. By appreciating their services, therefore, it was not only celebrating its long history, a sense of which is necessary for an Institution to remain on course, but also encouraging them by generating some self-esteem, and thus, targeting its needs. There is, thus, a live link between the object of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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