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2016 (11) TMI 1547 - AT - Income TaxRegistration u/s 12AA rejected - assessee society was formed for the welfare of the gold and bullion merchants of Eluru by the members for the benefit of the members of the society and cannot be said to be for the purpose of charity - exclusively for charitable purposes - Held that:- We find that the assessee is only existed for the benefit of few members particularly who are carrying business activity in Eluru town and it cannot be said that the assessee is doing charity. Charity means to help the poor who are in need. In this case, assessee has not done anything to the poor people who are in need, who are suffering with ill health, etc., etc. The Commissioner in his order has observed that the society was formed for the welfare of the gold and bullion merchants of Eluru by the members for the benefit of the members. Such society cannot be considered for the purpose of charity. We find that the Ld. Commissioner correctly held that assessee cannot be considered as a charitable organization. A society is formed for the benefit of themselves, it can only be said that it is a mutual benefit to each other. It cannot be said that people started an association for the benefit of themselves is a charity. The concept of charity means doing something to others who are in poor and helpless condition. The assessee association existed for the people who are in a trade, they are neither poor nor helpless. All the members of the association existed for the purpose of carrying their business with a profit motive. Charity is an anti-thesis of profit. The assessee society is not eligible for registration u/s 12AA - Decided against assessee.
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