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TMI Blog2013 (12) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... vities conducted by the assessee are basically aimed at improving the knowledge and competence of its members and that the society is not engaged in any charitable activity and further pointing out that, it is also hit by the amended provisions of Section 2(15) of the Act, the said application was rejected by the then Director of Income Tax(Exemptions), vide his order in F No.DIT(E)/Hyd/12A/25(04)/1l-12 dated 31.10.2011. 3. Being aggrieved by the said order of the DIT(E), the assessee has filed an appeal before the' Hon'ble Income Tax Appellate Tribunal (ITAT in short), Hyderabad. After considering the assessee's submissions, the Hon'ble ITAT, while stating that the DIT(E) has not made any enquiry about the objects and genu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the maintenance of his professional standards among its members 2. Holding technical and professional lectures, seminars, conference discussions and such programmes as are necessary for exchange knowledge and continuing education and thereby to contribute and promote long- term professional development of members 3. To endeavor to promote understanding of the influence of technology and work for welfare of public at large by organizing special technical programmes." 6. From the aforementioned objects, it may be noticed that though in the object clause-3, there is reference to make endeavour to promote understanding of the influence of technology for welfare of public at large by organizing technical programs, various activities to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated that, the funds of the society shall consist of Membership fee, Grants and Donations from various sources. Thus, there is no reference to any programme revenue in that clarification given in the articles of association of the assessee-society. He observed that income from programme revenue derived by the society during each year, is not as per the objects of the society, he also mentioned that, under section 12AA(3) of the Act, it says that registration granted to a trust or institution can be withdrawn, when the CIT finds that the activities of that trust or institution are not genuine or are not being carried out in accordance with the objects of such trust or association. From the same, thus, it follows that when a trust or an in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not arise. The nature of enquiry would depend on the facts of each case. Hence the contention of the AR that scope of the DIT(E) is limited to ascertaining only whether the objects are charitable or not cannot be accepted. 12. The next question for our consideration is whether on the facts and in law, the registration u/s. 12AA of the Act can be refused to the assessee. For the purpose of sections 11 and 12, the word "charitable purpose" has been defined in section 2(15) of the Act which reads as follows: "Charitable purpose" includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of the primary purpose of the trust or institution." 14. At this stage it is also pertinent to note that the clause "not involving carrying any activities of profit" were omitted from this definition by the Legislature by Finance Act, 1983 w.e.f. 1st April, 1983. Therefore, after such omission, the element of profit cannot be excluded from the definition "charitable purposes". u/s. 2(15) of the Act. 15. The above view is also supported by the Legislative intent disclosed in section 10(22) wherein it has been clearly provided that income of any activities cannot be exempted unconditionally if such institution also exists for deriving of profit. According to this provision, if any activity is running on commercial basis then income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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