TMI Blog2016 (7) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... in nature nor advancement of any general public utility but for the only benefit of the members of the company. With regard to principles of mutuality, the AR of the applicant has very well accepted in person before the ld. DIT(E) and also in the written submissions that the activities of the applicant was primarily aimed at benefitting the members and their sponsored persons. Before the ld. DIT(E), the ld. AR of the applicant has also accepted that there is no question of continuance of registration under section 12AA of the Act since the beneficiaries are only the members and benefit is not passed on to the public at large in any way. Therefore, the objects and activities of the applicant cannot be called as “charitable” within the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicant company are as under: 1. To organize technological seminars an exhibitions in all parts of India to propagate equipments such as agricultural implements, electrical house hold appliances, automobile equipments, machine tools accessories, jigs fixtures and PVC cables and other items manufactured by the Members of the Company. 2. To provide facilities to members for conducting meeting and conferences to promote the market for the goods manufactured by the members. 3. To pen and run technical libraries. 4. To provide for sports competition and catering facility to members. 3. The applicant institution was selected for scrutiny for the assessment year 2009-10 by the Assessing Officer. Various d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed written submissions dated 2.11.2011 before the ld. DIT(E), which reads as under: 1. All the activities of the company are primarily aimed at serving the cause of members and therefore covered under the concept of mutuality. A special training programme is conducted for enhancing the knowledge of the members and the employees by inviting experts in various fields like production, quality, measurement, methods, etc. 2. Catering charges and all charges are receipts from the members who had utilized the space in the centre for conducting the meetings, etc. for their staff or customers. Catering facilities are also used by members for providing food for their staff while they are doing overtime and on special occasions. 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. As accepted by the learned A.R., the beneficiaries are only the members and benefit is not passed to public at large in anyway. Therefore the object and activities of the assessee cannot be called charitable within the definition of main provision of Sec.2(15) of the Act. b. Without prejudice to the above finding, even if suppose the activities are held to be charitable, the assessee has not raised objections to the nature of receipts as mentioned in the show cause notice discussed earlier. In fact, in the written submission the assessee has very clearly accepted that catering charges, hall charges, etc. are given to members for their staff on commercial basis. Therefore, these activities are commercial in nature. The total sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal and contended that once Registration is granted, the same cannot be withdrawn without proper reasoning as to how the activity now carried on is against the objects for which the original registration is granted. He also relied on the decision of the Tribunal in the case of M/s. Tamil Film Producers Council in I.T.A. No. 2087/Mds/2013 dated 03.07.2015. 9. On the other hand, the ld. DR strongly supported the order passed by the ld. DIT(E). 10. We have heard both sides, perused the materials on record and gone through the orders of authorities below. In this case, the applicant was granted registration under section 12AA of the Act vide order dated 27.07.2005. The objects of the applicant are reproduced hereinabove. From the above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o section 2(15) of the Act with effect from 01.04.2009, the Charitable purpose has been well defined and includes relief of the poor, education, medical relief, preservation of environment including water sheds, 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. While carefully going through the object of the applicant, the objects of the applicant are neither charitable in nature nor advancement of any general public utility but for the only benefit of the members of the company. 11.2 With regard to principles of mutuality, the AR of the applicant has very well accepted in person before the ld. DIT(E) and also in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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