9911796707
TMI Blog2012 (8) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside & directions issued or grant of registration. 2. The appellant craves leave to add, amend, alter, modify, substitute or delete any ground of appeal at the time or before hearing of the appeal." 2. The assessee instead of putting personal presence filed written submissions. The brief facts of the case are that the assessee society filed application for registration under section 12A/12AA of the Income Tax Act, 1961 ('the Act' hereinafter) on 15th September, 2008. The CIT(A) called for remand report from the ACIT, Gwalior. In the report, it has been reported that the society has been formed to regulate Enclave's maintenance of roads, street light and security for the residents as well as of Enclave. The society was for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Student Funds [1984] 150 ITR 142/[1985] 20 Taxman 211 (Kar.). 3. CIT v. Andhra Pradesh Police Welfare Society [1984] 148 ITR 287/16 Taxman 111 (AP). 4. Kamla Town Trust v. CIT [1982] 133 ITR 632 (All)" 5. The decisions relied upon the written submission by the assessee trust are distinguishable on facts. The Court had decided those cases considering the facts of the respective cases which are not similar to the facts under consideration. In the case under consideration, the admitted facts are that the objects of the assessee society are for welfare of resident of the colony and other maintenance services of the colony. Whether such activities amount to charitable purpose or not ? For this purpose, the procedure fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charitable for two reasons firstly, although a member, according to his poverty or misfortune, might share in the funds held by the society for the mutual benefit of the subscribing members, it cannot be said that he had subscribed for a charitable purpose where in truth he had subscribed for the primary purpose of protecting himself or his family or colony. Secondly, whereas the possible beneficiaries of a charity have no right to demand anything from the party who administers the charity, in a mutual society a member can claim benefits as of right in return for his own and his co-members' subscriptions. Charity must be by way of bounty, it cannot be by way of bargain. Therefore, the mutual society would be non-charitable on the further gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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