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TMI Blog2015 (9) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ons) by order dated 31.05.2013 denied registration holding that society is formed for the benefit of its members only and not for the public. He submits that Director of Income Tax(Exemptions) also observed that society is providing services and benefits to its own members only which is violation of provisions of section 13(2)(b) and 13(2)(d) read with section 11 of the Act. The Authorized Representative further submits that it is the observation of Director of Income Tax(Exemptions) that benefits from the activities of the society are restricted only to surgeons and the assessee society is charging subscription fee from its members. He submits that Director of Income Tax(Exemptions) is not justified in making the above observations and it is a fact that benefit out of the association is not restricted to only surgeons and society is not a trade organization for doing any business, trade or commerce. The subscriptions are collected from members and the society is organizing various conferences and the members are attending as delegates and not as members. Authorized Representative submits that memorandum of association of the society has been amended with retrospective effect provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or welfare and create awareness of public m) To institute scholarships, endowments and extending monetary help to deserving students for school & higher education. n) To foster and develop a feeling of fellowship, good friendly relationship among members, to unite under a common bond of such fellowship and to pursue and strive for recreational & cultural benefits of members. o) To promote professional, social, recreational, cultural, education and welfare activities of members. p) to do all things as are necessary or conducive to attainment of objects or any of them." 5. On examining the above objects of the society, we do not find any reason to hold that assessee society is formed for the benefit of members only. Director of Income Tax(Exemptions) on examining various clauses of the memorandum which was placed before him tried to say that benefits are restricted only to the members and not to the public. It is the submission of the assessee that memorandum has been amended with retrospective effect and benefits are not restricted only to members and the activities are carried on for general public. We have gone through the decisions relied on by the Authorized Representative f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for." 7. This decision of the co-ordinate Bench has been upheld by the jurisdictional High Court dismissing the Revenue's appeal observing as under:- "2. The assessee-trust is a Society known as "The Chartered Accountants Study Circle". The aims and objects of the Society among other things are as follows: "a. To conduct periodical meetings on professional subjects; b. To publish books, booklets, etc. on professional subjects; c. To organise Seminars, Conventions, Conferences, etc., as may be deemed fit from time to time; d. To make representation to the Central and State Governments, Public and Professional Institutions, etc. on matters involving professional and social problems; e. To receive and collect any subscriptions, gifts and donations, either in cash or in kind or acquire by any other lawful ways and means and spend the same in fulfillment of all or any of the aims and objects of the Society. The income and properties of the Society shall be applied solely for the promotion and fulfillment of the aims and objects of the Society, provided if any Donor intends that his donation shall be applied to the attainment of any particular object or objects of the Society, suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity: Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is (ten lakh rupees) or less in the previous year; 7. In terms of sub-section 15 of Section 2 of the Act, a charitable purpose includes the 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 interest, and the advancement of any other object of general public utility. If the activities are in the advancement of any other object of general public utility, such activities can be called as 'charitable purpose'. However, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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