TMI Blog2018 (4) TMI 1523X X X X Extracts X X X X X X X X Extracts X X X X ..... any other general public utility. We find that the assessee is not carrying out any activity for promotion of trading. It is existed only for specified individuals, who are the members of the association. Therefore, assessee is not entitled for registration under section 12AA as has rightly been observed by the ld.Commissioner that the assessee is a mutual association. The assessee-society is only existed to protect the interest of the members of The Vijayawada Machinery Merchants Association and is only related to the members of the association and not doing anything towards promotion of trading. We are of the opinion that the ld. CIT(A) rightly rejected the registration under section 12AA - Decided against assessee. - ITA No. 688/VIZ/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers. The activities of the assessee are restricted to the contribution from the members. No expenditure is incurred towards any charitable activity. The primary object of the society is to promote and encourage unanimity and friendly feeling among the machinery merchants and, therefore, assessee cannot be treated as a charitable association, but is a mutual concern and, rejected for registration under section 12AA of the Act. 3 . On being aggrieved, assessee carried the matter in appeal before the Tribunal. 4. Ld. Authorised Representative for the assessee has submitted that The Vijayawada Machinery Merchants Association is a charitable association and the ld. Commissioner is not correct in rejecting the registration under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purpose to protect the interest of its members, i.e. specified individuals, who are the members of the association and contribute subscription and the same is utilized for their benefit. The assessee is not carrying on any useful activity towards public at large or at least a class of the people. We also find that the case of the assessee is not covered advancement of any other general public utility. We find that the assessee is not carrying out any activity for promotion of trading. It is existed only for specified individuals, who are the members of the association. Therefore, assessee is not entitled for registration under section 12AA of the Act as has rightly been observed by the ld.Commissioner that the assessee is a mutual ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and bullion merchants of Eluru town and to protect their personal interest. Even it is not existed to protect the interest of the trade at large but only it is existed for few members who are doing business in a particular town. We find that the assessee is only existed for the benefit of few members particularly who are carrying business activity in Eluru town and it cannot be said that the assessee is doing charity. Charity means to help the poor who are in need. In this case, assessee has not done anything to the poor people who are in need, who are suffering with ill health, etc., etc. The Commissioner in his order has observed that the society was formed for the welfare of the gold and bullion merchants of Eluru by the members for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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