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TMI Blog2024 (4) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... is allowed by set aside the order and matter referred back to the desk of Hon. CIT Exemption for reconsideration. 5. Appellant Craves leave to add, alter or amend any of the grounds of Appeal mentioned above, either at or before the time of hearing." 3. The brief facts of the case are that the assessee is a charitable trust registered under the Bombay Public Trust Act, 1950 on 27.08.2021. The assessee / applicant filed application for registration of trust under Section 12AB of the Act. The assessee/ applicant Trust started its activities in F.Y. 2021-2022. It has got provisional registration under sub-clause (vi) of clause (ac) of sub-Section (1) of Section 12A from A. Y. 2022-23 to A.Y. 2024-25 w.e.f. from 23.03.2022. The assessee / applicant Trust applied for regular registration by filling application in Form 10AB on 30.05.2023 electronically. Along with the application, appellant filed copy of Trust Deed, copy of Provisional Registration Certificate in Form 10AC, copy of Trust Registration Certificate under Bombay Public Trust Act, 1950 and Audited accounts for F.Y. 2021-2022. The application of the appellant for registration was however rejected by Ld. CIT(Exemptions) vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actual work of charity, howsoever humble it might be. From perusal of above referred objects of the applicant/assessee, it is evident that it is formed as association to protect the business interest and welfare of its members and that hardly can be considered as charitable in nature, particularly when the essence of altruism is absent from the same. The applicant/assessee is established and functioning as welfare association or union and also collecting fee in the guise of donation from ranging Rs. 01 to 3,11,000/- from 01.04.2021 to 31.03.2023 from its members. Moreover, the welfare activities adopted for its members are in nature of services being rendered to members as are common in other welfare organizations, which could not be termed for general public utility and charitable purpose. Further, the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Truck Operators Association reported in 9 taxmann.com 267 decided the matter in favour of revenue and held as under. "9. On examination of the objects and the purpose of the Association in the present case, it emerges that the respondent-Association is union of Truck Operators constituted for facilitating its member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the PAN database and Form 10B for giving equal importance to both languages and to help with better understanding and recognition. Accordingly, there is no change in the organization's legal status or structure. To support this clarification, the applicant trust also submitted relevant language translation certificates and official recognition documents from authorized translation agencies, confirming the accuracy of the translation. It was submitted before us that Name of the assessee/applicant trust has not changed but in translation from Gujarati to English, words in Gujarati "Bhutpurva Vidhyarthi Mandal" is translated in English as "Alumni Association". Instead of "Bhutpurva Vidhyarthi" the word "Alumni" is translated in English and for the word "Mandal", it is translated as "Association". Otherwise, the entity is the same as it is registered under the Bombay Public Trust Act, which is proved from the Trust Registration Number mentioned in Registration Certificate in Gujarati and translated in English. The Counsel for the assessee submitted that the applicant trust has got provisional registration in the name "Parul University Alumni Association" on the basis of lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... j.). It was further submitted before us that the expression 'public' includes cross section of public. It is well settled that for satisfying the requirements of Section 2(15), it is not necessary that the benefit should reach each and every poor person in the state or country. The court in the case of Girijan Co-operative Corporation Ltd vs. CIT [1989] 178 ITR 359(AP) held that it is sufficient if it reaches a sizable number of members of public. Further it was submitted by the Ld. Counsel for the assessee that in the case of CIT vs. Indian Sugar Mills Association [1974] 97 ITR 486 (SC) it was held that "the expression object of general public utility' is not restricted to objects beneficial to the whole of mankind or even all people living in particular country or province. It is sufficient if the intention is to benefit a section of the public as distinguished from specified individuals. The Section of the public sought to be benefited must undoubtedly be sufficiently defined and identifiable by some common quality of a public or impersonal nature; where there is no common quality uniting the potential beneficiaries into a class, it may not be regarded as valid." It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... field of education, medicine and to do activities for development of society and culture are for the benefit of cross Section of the society which covers general public utility and not for the benefit of particular caste. Therefore, the trust is existing for charitable objects and satisfied all conditions is eligible to get registration under Section 12A(1) of the Income Tax act, 1961. 13. In response, Ld. DR placed reliance on the observations made by CIT (Exemptions) in the order rejecting the application filed by the assessee/applicant trust. 14. We have heard the rival contentions and perused the material on record. 15. In our considered view, looking into the objects of the trust, it cannot be held that the assessee/applicant trust has been formed only for the benefit of a particular community only. Further, we also agree with the Counsel for the assessee that this aspect should be considered at the time of grant of exemption under Section 11 of the Act and the provisions of Section 13 should not be invoked at time of grant of registration under Section 12AA of the Act. In the result, the matter is being restored to the file of CIT (Exemptions) to examine the activities car ..... X X X X Extracts X X X X X X X X Extracts X X X X
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