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TMI Blog2021 (2) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal. We find no ground much less any substantial question of law to interfere with the order passed by the Income Tax Appellate Tribunal. The appeal is liable to be dismissed. - T. C. A. No. 799 of 2010 - - - Dated:- 3-2-2021 - THE HON'BLE MR. JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI For the Appellant : Mr.J.Narayanasamy, Senior Standing Counsel For the Respondent : Mr.Devanathan JUDGMENT ( Judgment was delivered by M. DURAISWAMY, J. ) Challenging the order passed in I.T.A.No.238/Mds/2008 on the file of the Income Tax Appellate Tribunal, Madras, Bench B Chennai, the Department has filed the above appeal. 2.It is the case of the assessee that they filed an applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date 01.04.2002, even though disregard to the provisions of Section 12A(a) proviso (ii) of the Income Tax Act, according to which registration cannot be granted from a date earlier than first of the financial year in which application was made? 4.The main contention of the appellant/Department is that the assessee Trust has not established that they are involved in charitable activities. Further, the contention of the appellant that the claim of the assessee that registration under Section 12AA may be granted with effect from 01.04.2000, is not sustainable in view of the provisions of Section 12Aa proviso 2 of the Income Tax Act and that the registration cannot be granted from a date earlier than the first day of the financial year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Gujarat Maritime Board. So similar treatment will have to be given to the assessee. 36.Moreover, there is hardly any country today in which the Government is not engaged actively and directly in the setting up and management of economic and industrial enterprises. State participation in industry is an established feature of the state economy in many countries of the world. In India, prior to independence, the administration of two of the biggest commercial undertakings, namely the Railways and the Post and Telegraphs, have been exclusive State control as key sectors of the industry. 37.In the present scenario of globalization of trade and industry, the transport of goods from one country to another, which is mostly by sea, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords, in Section 11(15), namely, any other object of generally public utility . From the said decisions it emerges that the said expression is of the widest connotation. The word general in the said expression means pertaining to a whole class. Therefore, advancement of any object of benefit to the public or a section of the public as distinguished from benefit to an individual or a group of individuals would be a charitable purpose [Commissioner of Income-tax, Gujarat-III, Ahmedabad v. Ahmedabad Rana Caste association, (1983) 140 ITR 1 SC]. The said expression would prima facie include all objects which promote the welfare of the general public. It cannot be said that a purpose would cease to be charitable even if public welfare is inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minor ports within the State of Gujarat, the management and control of the Board is essesntially with the State Government and there is no profit motive, as indicated by the provisions of Sections 73, 74 and 75 of the 1981 Act. The income earned by the Board is deployed for the development of minor ports in India. In the circumstances. in our view the judgment of this court in Andhra Pradesh State road Transport Corporation (supra) squarely applies to the facts of the present case. Before concluding we may mention that under the scheme of Section 11(1) of the 1961 Act, the source of income must be held under trust or under other legal obligation. Applying the said test it is clear, that Gujarat Maritime Board is under legal obligatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust under Section 12A of the Act. 6.The learned Senior Standing Counsel for the Department has not produced any contra judgments on this aspect before us. 7.From a reading of the judgments cited supra, it is clear that even if the assessee is engaged in the category of activity of object of general public utility , they are entitled for registration under Section 12A. Therefore, we are of the considered view that the assessee can claim registration under Section 12A by categorising the activity of the assessee as object of general public utility . In these circumstances, we do not find any error or irregularity in the order passed by the Income Tax Appellate Tribunal. We find no ground much less any substantial question of law to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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