TMI Blog2018 (3) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... lso entitled for registration u/s 12AA of the Act on this ground alone. The objectives of the assessee are for the benefit of a particular trade. Whether restricting the benefit to the members of a particular trade disentitles it from registration u/s 12AA of the Act. This issue has first been examined in detail by the Constitution Bench of the Hon'ble Supreme Court in the case of Surat Art Silk Cloth Manufacturers Association (1979 (11) TMI 1 - SUPREME Court). The Hon'ble Supreme Court held that where the dominant and primary object of the assessee is to promote commerce and trade in art silk yarn etc., it is charitable and the other benefits which are incidental in carrying out the main or primary purpose of the assessee, would not ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on filed by the society. Some of the objective clauses are mentioned as under: (A) To establish or to assist in establishment of any manufacturing facility that is likely to benefit the corrugated Box Manufacturing Association s members especially the micro and small manufacturing units owners and their work force. (B) To invite equipment manufacturers; research and development agencies or similar other agencies connected with manufacturing and logistics of corrugated boxes and allied products or services for arranging demonstrations on a common productions facility belonging to Trust and to collect and disseminate technical, statistical and other useful information and knowledge among the members of the Association and assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the assessee is only formed out of the said organization on bifurcation of the State and since the assessee is also carrying on the very same activity, it should not have been denied registration u/s 12AA of the Act. As regards the activity of the assessee, the learned Counsel for the assessee placed reliance upon the decision of the Coordinate Bench of this Tribunal at Chennai in the case of M/s. Tamil Nadu Small Medium Industries Mutual Association in ITA No.1950/Mds/2011 and also the decision of the Hon'ble Rajasthan High Court in the case of Jodhpur Chartered Accountants Society reported in 127 taxmann 90 (Raj.) 4. The learned DR, on the other hand, supported the orders of the authorities below. 5. Having regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritable purpose. 6. The Hon'ble Bombay High Court in the case of DIT (E) vs. Bharat Diamond Bourse, reported in 245 ITR 437 also applied the dominant purpose test to hold it to be a charitable institution and the said decision was upheld by the Hon'ble Supreme Court as reported in 295 ITR 280 (S.C). 7. In the case of Jodhpur Chartered Accounts Society case (Supra), the Hon'ble Rajasthan High Court held that to serve a charitable purpose, it is not necessary that the objects should be to benefit the whole of mankind or all persons in a country or State, and even if a section of public is given benefit, it cannot be said that it is not a trust for charitable purpose in the interest of the public. For coming to this conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinguished from a special individual is present. In the instant case, what had to be seen was whether the members of the Rana caste who were not natives of Ahmedabad but who came to reside there and were accepted as members of that caste according to its usage and custom could be said to have a relationship which was an impersonal one dependent on their condition as members of the Rana community. Such members of the Rana caste could not be regarded as having been introduced into that caste by consideration of their personal status as individuals. As a matter of fact that predominant contention and requirement of the clause defining 'beneficiaries' in the constitution of the assessee was the factum of their belonging to the Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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