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TMI Blog2015 (8) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit to the customers of the bank, but it does not mean that the assessee is doing charitable activity. This Tribunal is of the considered opinion that the assessee is not rendering any charitable activity other than rendering service to banking business by organizing lectures and seminars. - Decided against assessee. - I.T.A No. 473/Coch/2014 - - - Dated:- 9-1-2015 - Shri N.R.S. Ganesan and Shri Chandra Poojari, JJ. For The Appellant : Shri V Sathyanarayanan For The Respondent : Shri M Anil Kumar, CIT ORDER Per N.R.S. Ganesan (JM) This appeal of the assessee is directed against the order of the Administrative Commissioner rejecting the claim of the assessee for registration u/s 12AA of the Act. 2. Shri V Sathyanarayanan, the ld.representative for the assessee submitted that the assessee trust is a state forum of bankers club. The object of the trust was to bring all the bankers clubs under one roof for a common purpose. Referring to the object of the trust, the ld.representative submitted that the assessee is organizing lectures and seminars for the benefit of bank employees. According to the ld.representative, the assessee trust is inviting senior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative, the activity was started and that the assessee has conducted several programmes in which the Deputy Governor of Reserve Bank of India has participated, the Governor of Kerala has also participated in the function. Therefore, it is not correct to say that the assessee has not started any activity. 3. On a query from the bench that by organising lectures and seminars to the employees of the bank, the efficiency and capability of the employees to earn profit to the banking company may increase, how it is going to help the general public, the ld.representative clarified that by increasing the capability and efficiency of the bank employees, they will serve the society in a better manner which ultimately benefit the general public. Therefore, according to the ld.representative, the activity of the assessee is general public utility. Referring to First Proviso to section 2(15) of the Act, the ld.representative submitted that the assessee is not rendering any services to the trade or commerce. The assessee brings all the members of the banker clubs together and organizes seminars so that the general public may be benefited. According to the ld.representative, the benefit derived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust deed. The object of the trust is as follows: 3. The object for which the Trust is established are as follows: a) To bring together all Bankers Clubs in Kerala under one umbrella for their common goal. b) To arrange for lectures, seminars and talks on topics of contemporary relevance for the benefit of bank employees fraternity. c) To unite member clubs in bonds of friendship, good fellowship and mutual understanding and activate dormant clubs. d) To represent and bring to the attention of the state / district authorities, financial and other organizations, banking matters and problems of common nature faced by members of bankers clubs. e) To provide required assistance, encouragement, support, etc. to member clubs to enlarge their knowledge / technical skills, talents and expertise, etc. in various other fields. f) To undertake various charitable activities for relief of the poor, education and medical relief and the advancement of any other object of general public utility which are not in the nature of trade, commerce or business. g) To do all such things as may be incidental or conducive to the attainment of the aforesaid objects. From the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is twenty five lakh rupees or less in the previous year; The First Proviso to section 2(15) was incorporated by Finance Act, 2008 with effect from 01-04-2009. By virtue of First Proviso to section 2(15), rendering any service in relation to trade commerce or business for a fees cess or other consideration irrespective of its use or application cannot be considered to be a charitable purpose. By way of another amendment, viz. Second Provision to section 2(15), the application of first proviso is restricted in respect of the trust or institution, whose aggregate value of the receipt is less than ₹ 25 lakh rupees. In the case on our hand, it is not the case of the assessee that the aggregate value of the receipt is less than ₹ 25 lakh rupees. Therefore, this Tribunal is of the considered opinion that the First Proviso to section 2(15) would come into operation. In view of the First Proviso to section 2(15), this Tribunal is of the considered opinion that rendering of any service to the banking business cannot be considered to be a charitable activ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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