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2011 (1) TMI 693 - AT - Income TaxRegistration u/s 12A - The assessee company namely, M/s. Disha India Micro Credit, is a company registered under sec. 25 of the Companies Act, 1956 - The assessee claimed that they will provide collateral free credit to poor persons through their solidarity groups and secondary to borrow or raise money on interest or otherwise from banks, financial institutions, term ending institution, corporate person or organizations in India or abroad and in such manner as the Company may think fit for the purpose of financing the activities of the company - In the present case, it is not in dispute that the Central Government has directed that the assessee association is to be registered as a company with limited liability - It is also provided therein that no objects of the company will be carried out without obtaining prior approval/no objection certificate from the concerned authorities wherever required, and none of the objects will be carried out on commercial basis - Section 25 of the Companies Act, 1956, also provides that the company shall apply its profit, if any, or other income in promoting its objects and it is prohibited from making any payment of dividend to its members The expression “Relief of the poor” has been explained by the Board in its Circular No.11 of 2008 dated 19th December, 2008 - The learned CIT has also given one more reason that it is not comprehensible as to why not the assessee got itself registered as a society - It is not necessary that in order to do public charity, any one association is to be registered as a society or a trust – Accordingly held that mere because the assessee association is registered as company under sec. 25 of the Companies Act, that by itself cannot be a ground to refuse registration under sec. 12A/12AA of the Act - In the result, the appeal filed by the assessee is allowed
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