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2019 (12) TMI 306 - AT - Income TaxExemption u/s 11 - application for registration u/s 12AA rejected - Charitable activity u/s 2(15) - HELD THAT:- We find that the “object of general public utility” is one of the facts of “charitable purposes” as defined in the Income Tax Act and the Hon'ble Supreme Court in the case of CIT vs. Andhra Chamber of Commerce [1964 (10) TMI 19 - SUPREME COURT] has explained the object of general public utility as contained in section 2(15) As regards the objectives of the assessee, we find that they fall under the category of “object of general public utility” and are not restricted to specified individual/persons. Therefore, following the decision of the Hon'ble Supreme Court (cited Supra), the objectives of the assessee society are to be considered as charitable in nature and registration u/s 12A is to be granted. Another reason for denial of registration is that the objects do not restrict the spending of the funds only for charitable purposes. U/s 11, only such expenditure which is for charitable purposes, is allowable and the AO, during the assessment proceedings, can examine if the funds were utilized for the purposes for which the society has been formed. Since the CIT (E) has not pointed out any particular objective which is not for charitable purposes, and since the objectives are not restricted to any single or specified person/or persons, we are of the opinion that the assessee is eligible for registration u/s 12AA of the Act. In view of the same, we remand the issue to the file of the CIT (E) with a direction to grant registration u/s 12A of the Act. Assessee’s appeal is allowed.
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