9911796707
TMI Blog1979 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... d, following the Supreme Court decision in the case Lokashikshan Trust vs. CIT, that the assessee Association was having activity of general public utility involving profit and, therefore, it was not entitled to exemption under s. 11. 3. The AAC, has on the other hand, for reasons given in para 4 of his order held that the assessee Association was not even an Association involved in public charity and therefore the second issue whether it was involved in an activity of profit was a matter of academic importance and did not require any decision. 4. It is submitted before us by Shri Parikh, the learned counsel for the assessee, that the departmental authorities have failed to appreciate that the assessee Association was wholly for chari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the AAC. In support of the contention that the assessee Association was not established for charitable purpose within the meaning of s. 2(15) of the IT Act, 1961, particular reference in this behalf was made to the assessee in a labour pool activity at pages 69 of its Paper Book. 6. We have heard the parties at length and have carefully gone through the Memorandum of Association of the assessee Association. No doubt the assessee Association is mainly for the benefit of Bombay Custom House Clearing Agents and incidentally to the benefit of Custom Department and the persons engaged in export and import business. The short question that arises for consideration is whether such an Association can be said to be for the benefit of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore as held by the Supreme Court in the case of Lokashikshan Trust(1) if the object is found to involve an activity for profit the object will not be treated as a charitable object. 7. We have examined the facts of the case from this point of view also. We have found that the labour pool activity, which is the subject matter of dispute was foisted on the assessee by force of circumstances. The assessee's receipts in the two years in this behalf amount to Rs. 27,42,798 and Rs. 10,39,063. The expenditure involved in the two years has been of Rs. 27,56,090 Rs. 10,31,606. The facts according to us speak for themselves and it is not possible for us to hold that the rate of payments or receipts have been fixed by the assessee with a profi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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