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TMI Blog2013 (12) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... educate, network, facilitate social and economic empowerment, economic development programs, literacy programs, workshops, training programs for villagers and downtrodden people encourage and help to gain employment for children and their parents or elderly. 2. To educate, teach, instruct, coach, inform, train villagers and downtrodden people through formal and informal means for their welfare and protection in respect of their food, clothing, safe drinking water, sanitation facilities. 3. To help voluntary agencies and other bodies to reach the poor and needy and to enlarge their vision of service and strengthen them in their mission to the needy. 4. To provide education to villagers and downtrodden people from less privileged backgrou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The object of the assessee is to teach, instruct and coach people in general and train villagers and downtrodden people through formal and informal means for their welfare and protection in respect of their food, clothing, safe drinking water, sanitation facilities, etc. Counsel contended that the Director of Income-tax (Exemptions) ought to have granted registration under section 12AA of the Act in the first instance and if the assessee is found ineligible on account of its activity being carried out in the subsequent years, the same is open to the authorities concerned to withdraw the registration. On the other hand, Shri Anirudh Rai, appearing on behalf of the Revenue submitted that the Director of Income-tax (Exemptions) in paragraph 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 'charitable purpose' under section 2(15) of the Income-tax Act, 1961. Section 2(15) of the Income-tax Act, 1961 (Act) defines 'charitable purpose' to include the following: (i) relief of the poor (ii) education (iii) medical relief, and (iv) the advancement of any other object of general public utility. An entity with a charitable object of the above nature was eligible for exemption from tax under section 11 or alternatively under section 10(23C) of the Act. However, it was seen that a number of entities who were engaged in commercial activities were also claiming exemption on the ground that such activities were for the advancement of objects of general public utility in terms of the fourth limb of the definition of 'charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the company shows that it has been incorporated with the aim of providing education, facilitate social and economic empowerment, economic development programs, literacy programs, training programs for villagers and downtrodden people. How these objects are to be achieved should be left to the assessee. The fact that the assessee has been incorporated under section 25 of the Companies Act, 1956 show that it has been formed for promoting charity or any other useful object and intends to apply its profits, if any or other income in promoting its objects. In other words, its a non-profit earning organization. In our considered view, the Director of Income-tax (Exemptions) merely on assumption has rejected the application of the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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