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2023 (6) TMI 178 - AT - Income TaxExemption u/s 11 - application seeking registration u/s 12AA denied - CIT(E) concluded that the assessee trust was not created for any general welfare of the employees - Assessee is a non-profit organization established with the objective of promoting social and economic development with women’s full participation and is incorporated as a company registered u/s 25 of the Companies Act, 1956 - HELD THAT:- On going through the objects of the said trust and the reply given by the assessee before the ld.CIT(E), we are of the considered opinion that the assessee’s activity falls squarely within the object of ‘advancement of general public utility’ as defined in section 2(15) of the Act. Hence, apparently, the activity carried out by the assessee is a charitable activity as per section 2(15) of the Act. It is not in dispute that the assessee’s case does not fall within the ambit of proviso to section 2(15) of the Act, which provides a restriction, if the charitable purpose is not for advancement of general public utility. Hence, the assessee’s case does not fall within the ambit of proviso to section 2(15) of the Act. Trust created for the purpose of discharging statutory obligations of another parent trust - Any trust that has been created for the purpose of managing the statutory obligations of employees of the parent trust would certainly fall within the ambit of advancement of general public utility and, hence, to be considered as a charitable activity as defined u/s 2(15) of the Act. We direct the ld.CIT(E) to grant registration u/s 12AA of the Act to the assessee trust. Accordingly, the grounds raised by the assessee are allowed.
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