TMI Blog2006 (7) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961, which are necessary for its registration under section 12A of the said Act ?" 2. The short controversy involved in this appeal is whether Gujarat Maritime Board is a charitable trust/institution or not, for the purpose of Section 12A of the Income Tax Act, 1961. This aspect has been considered by the Tribunal as under : "4.We have considered the rival submissions with reference to each and every ground given by the Commissioner of Income-tax for refusing the registration of the assessee under section 12A of the Act. Our finding in this regard is as under : (i) The first ground given by the Commissioner of Income-tax for refusing the registration of the assessee is that the assessee cannot be considered to be a lawfu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no mention of either trust or institution. As per Section 12A of the Act only trust or institution are entitled for registration. If the view of the Commissioner of Income-tax is accepted as correct, then no person would be entitled to registration under Section 12A of the Act. Therefore, if a person is a trust or institution, it is entitled to registration under Section 12A of the Act. Therefore, even though as per definition of 'person' it is falling in another category like company, association of person or Local Authority. In para-4 we have already held that the assessee is an Institution and therefore merely because within the definition of 'person' it is termed as local authority it would be no bar to apply for the registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia. Copy of the Act was duly submitted before the Commissioner of Income-tax. It was not the case of creation of Trust by some individual and therefore there was no specific name of any founder or settler of the Trust and therefore the Commissioner of Income-tax was not justified in denying to register the institution for want of name of the settler or author of the Trust. 8. The Commissioner of Income-tax has stated that sections 11, 12 and 13 provide tax incentives to the private individuals and not to the Public Enterprises/Public Sector Undertakings. The learned Senior DR also vehemently contended that the assessee is a statutory body and it is discharging its duties as provided in GMTB Act, 1981. The statutory bodies or Public Ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the Port authority, therefore the assessee is required to claim the exemption under the provisions of the Income-tax Act. 10. It has also been mentioned by the Commissioner of income-tax that the assessee may earn income from its activity of providing infrastructural facilities and also from other ancillary activities such as rental income from letting out of the property, sale of goods etc. which may not be exempted. It is also contended by the learned DR that the assessee does not have any income which is exempt under section 11. However, in our opinion, whether part of the income is exempt or not is irrelevant for the registration of the Institution. This issue would be relevant only when the assessment of a particular asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty which is for the purpose of advancement of an object of general public utility is carried out with profit motive, it would fall within the definition of 'charitable purpose' under section 2(15). Though the Legislature by simultaneous amendment under section 11(4A) has provided that the exemption under section 11 shall not be available in relation to any income of a trust or an institution being profit and gains of business unless the business is incidental to the attainment of the object of the trust. However, this exercise whether the assessee has income from business or not and if there is business income whether it is incidental to the attainment of the object of the trust or not, is to be carried by the Assessing Officer while making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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