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2018 (4) TMI 1523 - AT - Income TaxRegistration u/s 12AA rejected - Whether the assessee Vijayawada Machinery Merchants Association is a charitable association? - proof of charitable activities - assessee-society as existed to protect the interest of the members - Held that:- The assessee is existed for the purpose to protect the interest of its members, i.e. specified individuals, who are the members of the association and contribute subscription and the same is utilized for their benefit. The assessee is not carrying on any useful activity towards public at large or at least a class of the people. The case of the assessee is not covered advancement of any other general public utility. We find that the assessee is not carrying out any activity for promotion of trading. It is existed only for specified individuals, who are the members of the association. Therefore, assessee is not entitled for registration under section 12AA as has rightly been observed by the ld.Commissioner that the assessee is a mutual association. The assessee-society is only existed to protect the interest of the members of The Vijayawada Machinery Merchants Association and is only related to the members of the association and not doing anything towards promotion of trading. We are of the opinion that the ld. CIT(A) rightly rejected the registration under section 12AA - Decided against assessee.
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