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TMI Blog2004 (5) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... he society charged the fees to meet the cost of educational programmes. Wherever surplus resulted, it was utilized for the promotion of the objects of the society. The educational programmes were conducted in conformity with the objectives. There is absolutely nothing to indicate that such programmes were conducted not with the desire to do good but to earn profit. We are satisfied that the profit element is missing. Fees were charged to meet the cost. As such, it cannot be construed to be the business of the assessee-society. Once this finding is arrived, the conclusion is irresistible that the case of the assessee is not coming within the ambit of sub-section (4A) of section 11 of the Act. Accordingly, the benefit of section 11(1) of the Act cannot be denied to the assessee. We direct the Assessing Officer to allow exemption u/s 11 of the Act to the assessee-society. In the result, the appeal of the assessee stands allowed. - HON BLE M.K. CHATURVEDI, VP R.P. RAJESH, A.M. For the Appellant : S.M. Contractor For the Respondent : Amardeep JUDGMENT M. K. Chaturvedi (Vice-President). I. T. A. No. 833/Mum/2000 1. This appeal by the assessee is directed against the order of the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odical literature ; (g) the organization of exhibitions, social gatherings and cultural programmes on various phases of art, literature, culture, philosophy, crafts, agriculture and industry ; (h) the holding of receptions, press conferences, etc.; (i) the organization of delegations from one country to the other ; (j) the arrangement of suitable recreational facilities and social contacts between the people of India and the United States of America. 5. The society comprises different classes of membership. The details of the same are as under : Classes of membership and their entrance and subscription Patrons : Rs. (a) Individuals Rs. 5,000 (b) Corporate Rs. 10,000 Life members Individuals only Rs. 2,500 Ordinary members Rs. 200 per annum Entrance fee Rs. 200 one time Corporate members Rs. 1,500 per annum Entrance fee Rs. 500 one time Student members Rs. 50 per annum Family members Rs. 25 per annum 6. The Assessing Officer considered the 36th annual report of the society for the financial year 1995-96. It revealed from the perusal of the same that the assessee incurred expenditure to welcome Shri Palkhivala and American guests and other dignitaries in John F. Kennedy Memorial. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puterized coaching for GRE, GMAT SAT tests for admission to US Universities. III. Cultural activities 1. Programmes for expatriate families new to India on Indian art, culture, classical music, dance, etc. 9. The expressions charity or charitable purposes do not admit of rigid definition. In order to understand what these expressions legally convey, one can merely enumerate its various aspects and characteristics as they have been recognised by the laws of a particular country. Charity denotes instincts of piety and benevolence, dictated by desire to do good. In the case of Commissioners for Special Purposes of the Income-tax v. John Frederick Pemsel [1891] AC 531 ; [1891] 3 TC 53 (HL), Lord Macnaghten laid down that charitable purposes could be put under the four heads, viz., for the relief of poverty ; for the advancement of education ; for the advancement of religion ; and for other purposes beneficial to the community not falling under any of the preceding heads. In re, White ; White v. White [1893] 2 Ch. 41 (CA) broadened the base and laid down in general terms any mode of promoting the welfare of mankind would be a charitable object. As per the prescription of section 2(15) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d utility signifies usefulness. Therefore, the advancement of any object of benefit to the public or a section of the public as distinguished from an individual or a group of individuals, would be of charitable purpose. The expression any other object of general public utility is of the widest connotation. It prima facie includes all objects which promote the welfare of the general public. An object of public utility need not be an object in which the whole of the public is interested. It is sufficient if a well defined section of the public benefits by the object. In other words, the expression object of general public utility , however, is not restricted to objects beneficial to the whole mankind. An object beneficial to the people of India and the United States of America is an object of general public utility. To serve a charitable purpose, it is not sine qua non that the object should be to benefit the whole of mankind or even all persons living in a particular country or province. It is sufficient if the intention is to benefit a section of the public as distinguished from specified individuals. The section of the community sought to be benefited must undoubtedly be sufficien ..... X X X X Extracts X X X X X X X X Extracts X X X X
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