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TMI Blog2011 (8) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... the society as given in Chapter II of the Memorandum of Association and Bye-laws of the society are to advance and improve the cause and condition of Tamil and Tamilians, to promote friendly and social intercourse among the members, to maintain the charitable institution of Tamilians, to afford facilities for the physical, moral, social and educational improvement of its members and to help the industrial and economic advancement of Tamilians. In pursuance of its objects the society is running eight institutions. Some of the institutions are aided, some are self financed and some are partly aided and partly self financed. The aided institutions are Umamaheswaranar Higher Secondary School, Radhakrishna Elementary School and Orphanage Studen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o survive and make both ends meet, granting of tax exemption to such society, which promotes regionalism and sectarian interest, does not have sanction of the Constitution and ought not to be allowed by any wing of the Government. He held that some of the objects of the society cannot be considered as charitable as some of the objects go against the grain of national integration. 6. Thereafter, discussing a number of decisions and referring to various dictionaries, he finally held that the assessee is not entitled for registration under section 12AA. 7. To bring down a long story to short, the Commissioner of Income-tax has held that the assessee is not a charitable institution entitled for registration under section 12AA of the Act. Firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 12AA of the Income-tax Act, 1961. The personal views of the authorities are not the parameters to follow while adjudicating an issue. Law relating to charity, as given in the Income-tax Act, does not prohibit an institution from working for the upliftment and betterment of a particular linguistic group. Moreover, what is the essence of a charitable institution for the purpose of Income-tax Act is service to the public. The Hon'ble Supreme Court has held in umpteen number of cases that a large block of people, identified on any of the acceptable tests, are to be considered as public for the purpose of charity. In that way school children are public, teachers are public, doctors at large are public and soldiers as a whole are public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case that the students had donated out of compulsion or force. Therefore it is to be presumed that the students who sought admission in the institutions run by the assessee had given the donations voluntarily. So, for the limited purpose of Income-tax Act, the donations collected by the assessee society are to be treated as voluntarily contributions. Voluntary contributions are in the nature of income of a charitable society. 12. Having stated so, the next question to be looked into is whether the assessee has applied any of its funds for purposes other than charitable activities. There is nothing on record to show that the assessee has applied its funds for non charitable or religious purposes. 13. In the facts and circumstances of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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