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TMI Blog2016 (3) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose'. 'Charitable purpose' includes relief of the poor, education, medical relief and the advancement of any other object of general public utility. The phrase 'any other object of general public utility' if, examined in the light of the Judgment in the case of AHMEDABAD RANA CASTE ASSOCIATION [ 1971 (9) TMI 8 - SUPREME Court ], it is not necessary that the object should be to benefit of the whole of mankind or of persons in a Country or State. If it is distinguished from a specified individual and if it is to the benefit of section of the public, it has to be construed as charitable purpose. As such, the Order passed by the Tribunal is unsustainable. The matter deserves to be reconsidered by the Tribunal regarding the purpose and obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12A and consequently denial of recognition under Section 80G(5)(vi) of the Act? 2. The Appellant is a Trust and applied to the Director of Income Tax [Exemptions], respondent herein, for grant of registration under Section 12A of the Income Tax Act, 1961, ['the Act', for short] and also for grant of recognition under Section 80G[5][vi] of the Act. The respondent rejected the application holding that the Trust exists not for general public or a section of general public, but for the benefit of its Members. Aggrieved by the Order of the respondent, the appellant preferred appeals before the Tribunal. The Tribunal rejecting the contentions of the appellant dismissed the appeals holding that the Appellant-Trust emerges out f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of sports; g) Establishment and running of educational institutions in rural areas, exclusively for and children up to 12 years of age; h) Establishment and running of hospitals and medical facilities in rural areas, exclusive women and children up to 12 years of age; i) Encouraging the production of bacteria induced fertilizers; j) Construction of hostel accommodation for woman or handicapped individuals or individual who are of the age of 65 years or more; k) Establishment and running of Institutions imparting education n the field of engineering, medicine in rural areas or towns which consists of population of less than 5 lakhs; etc. l) Plantation of softwood on degraded non-forest land; m) Any progr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n/accident /thunder/fire to provide appropriate financial compensation through trust by treating the same as a special circumstance. 6. The application for registration under Section 12A of the Act is rejected by the respondent and confirmed by the Tribunal, placing reliance on the other objectives of the Trust cited supra and the preamble of the Trust Deed which reads as under: WHEREAS, the SETTLOR/EXECUTOR with an intention to safeguard the interests of the Milk Producers and the employees of the Milk Producers Co-operative Societies of the District and to help the Milk Producers, has come forward to constitute this Trust to safeguard the interests and to promote the health and education of the Member Milk Producers, their famil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an object of general public utility. To serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind or all persons in a particular country or State. It is sufficient if the intention to benefit a section of the public as distinguished from a specified individual is present. 10. Applying the principles laid down in the case of AHMEDABAD RANA CASTE ASSOCIATION [supra], we are of the considered opinion that the other objectives of the Trust may be to provide educational facilities and medical facilities to the Members of the Milk Producers Societies and their family members as also to the employees of the Societies, the main objective of the Trust as enumerated at paragraph-2 of the Trust D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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