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2015 (5) TMI 919 - AT - Income TaxRegistration under section 12AA denied - rejection of application in Form 10A - Held that:- It has been clearly established by various decisions that when the main object of the institution was "charitable in nature", the activities carried out towards the achievement of the said, being incidental or ancillary to the main object, even if resulting in profit and even if it is carried out with non-members, were all held to be "charitable in nature". The basic principle underlined the definition of charitable purposes remains unaltered even by amendment to section 2(15) of the Act with effect from April 1, 2009, though the restrictive first proviso was inserted therein. In the given facts of the case, the assessee's association's primary purpose was to give focus on areas of education, environment and engagement (community and employee). It has through constant and well monitored support aimed towards community sustainability. Therefore, they have focused on areas of education and environment, watershed management, women empowerment through skill development initiatives, provision of drinking water, youth empowerment, medical health camps, environmental conservation program, and promotion of sports and a host of extracurricular activities at local levels aimed towards community sustainability. Hence, the assessee association primary purpose was advancement of objective general public utility and it would remain charitable even if an incidental or ancillary activity or purpose of achieving the main purpose was profitable in nature. Hence the finding of the Director of Income-tax (Exemptions) has mentioned in the object clause 17 under the said incidental objects under Part B of the memorandum of association at paragraph 5 of his order stating it to be non-charitable does not disentitle the assessee for availing of exemption under section 12 of the Income-tax Act. - Decided in favour of assessee.
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