TMI Blog2008 (4) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. To establish and exchange social relationship among Members. 4. To promote education of young Japanese. 5. To promote mutual interest between Members. 6. To invite whenever desired intellectuals, industrialists, scholars, creative artists, etc., to address the seminars/conferences conducted by the Society. 7. To collect and discuss among its Members information pertaining to environment protection and conservation or any other matters related thereto." The aims and objects clause also contained an embargo on the making or distribution of the profits of the society in the following words: "All the income, earnings, movable/immovable property, member's subscription, and contributions of the Society shall be solely utilised and applied towards the promotion of its aims and objects only as set forth in the memorandum of the Society and not for purposes of making profit and no profit thereof shall be paid or transferred directly or indirectly by way of dividends, bonus, profits or in any manner whatsoever to the present or the past member of the Society or to any other person claiming through anyone or more of the present or the past Members. No member of the Society sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 14 of the Societies Registration Act. The sources of the income of the society are dealt with in clause 15 of the rules and regulations. According to the same, the following are the sources of income of the society: (a) Admission fee and annual subscription fee from the members; (b) Grants and special contributions; (c) Admission/registration fee for seminars/conferences conducted by the society from the attendants. According to the above clause, all the income of the society shall be utilised only for the promotion of the aims and objects of the society. 3. By an application dated23-3-2007, the assessee applied to the Director of Income-tax (Exemptions) for registration under section 12A of the Act. In addition to the essential details, the assessee also furnished the memorandum of the society and rules and regulations, the certificate of registration, etc. in support of the application. In the course of the enquiry conducted by the Director of Income-tax (Exemptions), the assessee also submitted the detailed reply to the questionnaire issued by the Director of Income-tax (Exemptions) and also a note dated 2-8-2007 containing the details of the activities carried out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onable as it is supported by several authorities including decisions of the Supreme Court. However, the question is whether any of the objects of the society is non-charitable. A conjoint reading of all the seven aims and objects of the society as listed in its memorandum shows that the main objects are the first two. By these objects, the assessee intends to promote and encourage trade, commerce and industry betweenIndiaandJapanin general without any profit motive and also to foster economic co-operation and strengthen the relationship between the two countries. There can be no objection, after the celebrated judgment of the Supreme Court in CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722, that advancement of promotion of trade, commerce and Industry leading to economic prosperity enured for the benefit of the entire community and, therefore, the first two objects of the assessee-society are objects of general public utility. The other five objects are only incidental to the attainment of the first two objects. Object No. 3 is to establish and exchange social relationship among members. Object No. 4 is to promote education of young Japanese. Object No. 5 is to promote mutual i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities of the society are restricted to Japanese companies and Japanese government institutions who alone can become members of the society and, therefore, the Indian public at large is not benefited by the activities. It has to be remembered that the society has been formed to promote development of trade and commerce betweenIndiaandJapanand facilitate economic co-operation between the two countries. It cannot be denied that the industrial advancement or advancement in other connected fields, the benefits of which accrue to the members of the society would, by virtue of close interaction between the two countries, would also percolate to the public of.India. Promotion of trade, commerce and industry betweenIndiaandJapanwill undoubtedly benefit the Indian public at large. Therefore, the Director of Income-tax (Exemptions) is not justified in saying that the Indian public or a segment thereof will not be benefited by the activities of the society. 7. In the course of the arguments before us, the learned Senior DR submitted that there is no provision in the constitution of the society, as to what would happen to the assets of the society after dissolution. This matter was raised ..... 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