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TMI Blog2011 (3) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel also submitted that telecasting and broadcasting will be limited within India - assessee has admitted that it has not undertaken any of such activities for the last 5 years and still remains a paper company - Decided against the assessee - IT APPEAL NO. 1486 OF 2009 - - - Dated:- 22-3-2011 - C.N. RAMACHANDRAN NAIR AND B.P. RAY, JJ. P.K.R. Menon and Jose Joseph for the Appellant. A. Kumar for the Respondent. JUDGMENT Ramachandran Nair, J. This is an Appeal filed by the revenue challenging the order of the Income-tax Appellate Tribunal directing the Commissioner of Income-tax to grant registration to the respondent-company as a Charitable Institution under section 12A of the Income-tax Act (hereinafter referred to as the Act for short). 2. We have heard learned Senior Counsel appearing for the appellant revenue and Shri. A. Kumar learned counsel appearing for the respondent. We have also gone through the orders of the Commissioner issued on the application filed by the assessee under section 12AA of the Act and the orders of the Tribunal allowing the claim and have also considered the argument note submitted by the assessee's counsel. 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, the assessee explained before the Commissioner that it has not started operation and it will confine it's operations of telecasting and broadcasting of television and radio programmes only within India. The assessee, however, did not explain as to what is the scope of the business it proposes to take up under the main sub-clause, namely "to act as an agent, broker, liasioner, introducer etc.". 5. So far as the charitable object of the Company by way of advancement of object of general public utility is concerned, the assessee contended before the Commissioner that the television and radio programmes like, documentary, telefilm, serial, etc., are proposed to be made and telecasting and broadcasting of the same are intended for promoting social and spiritual upliftment of general public. Even though the Commissioner raised an objection that the general public are not beneficiaries under Memorandum of Association of the Company the assessee contended that benefit that goes to the public from the assessee company is that programmes to be telecast and broadcast by them will help for spiritual and social upliftment of the public. The Commissioner after considering detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) The main object of the company to be pursued by the Company on its incorporation are : 1. To carry on in India and elsewhere without profit motive and for the benefit of the members of this foundation, the activity to promote, project, participate, prepare, develop, shot, expose, edit, exhibit, mix, remix, display, print, reprint, convert, manipulate, duplicate, finish, buy, sell, run, import, export, acquire, broadcast, distribution and act as agent, broker, liasioner, introducer, proprietor of all types of television, radio programmes, video communication system including video serials, telefilms, documentaries, educational and training films for promoting human and spiritual values aimed at social and spiritual upliftment of general public or sections thereof through company's own or hired channels by satellite uplink, telecommunication, cable, internet, satellite network and/or terrestrial network and/or any other means of broadcasting and multimedia communication using all technological, innovations/methodologies subject to Rules and Regulations prescribed by the Government from time to time." 8. Admittedly, the assessee is a Company registered under section 25 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P.) Ltd. v. CIT [1967] 65 ITR 611 and in U.P. Forest Corpn. v. Deputy CIT [2008] 297 ITR 1/[2007] 165 Taxman 533 (SC), the assessee's counsel has relied on the decision of the Supreme Court in Director of Income-tax v. Bharat Diamond Bourse [2003] 126 Taxman 365 and the decision of the Privy Council in the case of Trustees of the Tribune In re [1939] 7 ITR 415 and the decision of the Rajasthan High Court in Umaid Charitable Trust v. CIT [1980] 125 ITR 55. Other decisions cited by the assessee's counsel are in Dharmoposhanam Co. v. CIT [1978] 114 ITR 463 (SC), and in Sole Trustee Loka Shikishna Trust v. CIT [1975] 101 ITR 234 (SC) and the decision of the Supreme Court in Umaid Charitable Trust's case (supra). 9. After hearing both sides and after going through the object clause we are not persuaded to uphold the order of the Tribunal because in our view, the activities of the assessee stated above i.e., undertaking to telecast and broadcast programmes and to act as an agent, broker, liasioner etc., will not make the object clause charitable. These are purely commercial activities not exclusively intended for advancement of any object of general public utility, no matter as already ..... X X X X Extracts X X X X X X X X Extracts X X X X
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