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TMI Blog2010 (8) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... he income of the assessee only for charitable purposes and the element of private gain could not be excluded. The union was, thus, held not to be a charitable institution. - - - - - Dated:- 12-8-2010 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL JJ JUDGMENT The judgment of the court was delivered by Ajay Kumar Mittal J.-Whether the respondent-truck operators association is entitled to registration under section 12AA of the Income-tax Act, 1961 (in short "the Act"), is the short question which requires adju- dication in this appeal filed by the Revenue. 2. The appeal was admitted by this court on October 1, 2007 for determi- nation of the following substantial question of law : "Whether on the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, the payment of the above amount is mandatory and the same does not represent any form of donation. (III) The association has been formed for the welfare of the truck operators, their drivers, cleaners mechanics restricted within the area of Hansi Town/ village and not for public in general though they may render some occasional help on emergencies if requested, by other association outside the above area. (IV) The association facilitates the loading of trucks within the area of its operation and in turn a fixed commission of Rs. 30 or Rs. 50 per truck depending upon the distance being covered is charged from the truck owner. This payment is also compulsory and not a donation. (V) The association is stated to be having Tata Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not intended to serve merely the interest of the members of the assessee-association. Advancement of trade leading to economic prosperity accrues to the benefit of entire community. The prosperity would be shared also by those who engaged in transporting trade but on that account the purpose is not rendered less an object of general public utility. Promotion of trade cannot be equated with promotion and protection of activities and interest merely of persons engaged in trade. In promotion of trade in India the public is vitally interested and if by such activities of the assessee that object is achieved, it would be an advancement of an object of general public utility." 5. We have heard learned counsel for the parties. 6. The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k drivers, cleaners and mechanics of the truck owners are in the nature of staff welfare activities, as are common in other business organizations which cannot be termed for general public utility. 10. We now advert to the judgments relied upon by learned counsel for the assessee. 11. In Bar Council of Maharashtra's case [1981] 130 ITR 28 (SC), the Bar Council of Maharashtra had claimed itself to be covered under "object of general public utility" as the same was established for charitable purpose. The apex court opined that the primary or dominant purpose of the State Bar Council being safeguarding the rights, privileges and interests of advo- cates on its roll enjoined upon the State Bar Council under the advocates Act, 1961 would f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit motive but had defaulted in utilizing its income derived from charitable institution for its charitable activities, it was held that it may be a ground to refuse exemption with respect to that part of income which had not been so utilized but it could not be denied registration. 15. In view of the above, the assessee cannot derive any advantage from the judgments relied upon by it. 16. Now, reference is made to the judgment of the Delhi High Court in Truck Operators' Union's case [1981] 132 ITR 62 whereupon the revenue has placed heavy reliance. 17. The assessee was a union of transport operators registered as a trade union under the Indian Trade Unions Act, 1926. On analysis of the objects of the union for which it was con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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