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2018 (3) TMI 84 - AT - Income TaxApplication for registration u/s 12AA rejected - as per CIT-A objective clauses of the Trust are for the mutual benefit of Corrugated Box manufacturing persons - no “advancement of any other objects of general public utility” by the assessee as required u/s 2(15) - Held that:- Andhra Pradesh Corrugated Box Manufacturers Association from which the assessee has been carved out, has similar objectives and has already been granted registration u/s 12AA which has since been not rescinded. The assessee has been formed on the bifurcation of the State of Telangana and is having the same objectives and therefore, it is also entitled for registration u/s 12AA of the Act on this ground alone. The objectives of the assessee are for the benefit of a particular trade. Whether restricting the benefit to the members of a particular trade disentitles it from registration u/s 12AA of the Act. This issue has first been examined in detail by the Constitution Bench of the Hon'ble Supreme Court in the case of Surat Art Silk Cloth Manufacturers Association (1979 (11) TMI 1 - SUPREME Court). The Hon'ble Supreme Court held that where the dominant and primary object of the assessee is to promote commerce and trade in art silk yarn etc., it is charitable and the other benefits which are incidental in carrying out the main or primary purpose of the assessee, would not make it not charitable. Also in the case of CIT vs. Andhra Chamber of Commerce (1964 (10) TMI 19 - SUPREME Court) held that the Chamber of Commerce did not cease to be charitable merely because the members of the chamber were incidentally benefitted in carrying out its main charitable purpose. - Decided in favour of assessee
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