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2021 (6) TMI 811 - ITAT PUNEExemption u/s 11 - grant of registration u/s. 12AA - appellant company made an application in Form No. 10A for grant of registration u/s. 12A - HELD THAT:- As carefully gone through the MOA, we found that the appellant company is formed to provide reemployment to ex-servicemen etc. On perusal of clause set out in Memorandum of Association, we are unable to discern clause creating an interest in property in favour of the public for any of the object listed u/s. 2(15) which is sine qua non for creation of charity - we may point out that covenant in the MOA does permit the appellant company to distribute the profits in the form of dividend amongst its members and does not set out a condition that the income earned by the appellant company shall be deployed for the objects of the company. - This would make the appellant company a commercial organization. However, the view of the ld. CIT (Exemption) that the appellant company is a commercial organization merely because it is generating huge revenue from year to year with mark-up on the cost of 10% to 12% cannot be upheld. CIT (Exemption) had not considered the matter in proper perspective. The matter should be remanded back to the file of the ld. CIT (E) for de-novo consideration of application on the touchstone of law laid down by in the case of Ananda Social and Educational Trust [2020 (2) TMI 1293 - SUPREME COURT] after giving due opportunity of being heard to the appellant. Grounds of appeal raised by the assessee are partly allowed for statistical purposes.
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