TMI Blog1998 (7) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... of the members who are manufacturers in plastic products. Constitution of the petitioner association is annexed to the petition. The members of the petitioner association are citizens of India and they are entitled to fundamental rights guaranteed under part III of the Constitution. On 15th June, 1988, the petitioners' chartered accountant addressed a letter to the respondent with necessary details requesting him to grant registration under s. 12-A of the Act. By a letter dt. 4th July, 1988, certain queries were raised by the respondent and they were replied by the petitioner. Again, a reminder was sent by the petitioner's chartered accountant requesting the respondent to issue necessary certificate of registration but nothing wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in view of the fact that exact date of creation of association was not known. In the application, however, the year 1969 was mentioned by the association. Again, the exact date of creation of association, according to the petitioner, was not relevant. On what date the association was created has no bearing on the grant of registration under the Act, and the application could not be rejected on that ground. The application ought to have been decided on its own merits as and when it was taken up for consideration. Regarding second ground, it was submitted that it was also not relevant and ought not to have been considered by the respondent. Even if it is assumed that there was some delay in filing such application, the application coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence the provisions of s. 12-A of the Act could not be invoked by the petitioner. 4. Mr. Soparkar submitted that an error of law has been committed by the respondent in interpreting the provisions of s. 12-A of the Act. The provisions of s. 12-A, material for the purpose of controversy raised in the present petition reads as under : 12A. The provisions of s. 11 and s. 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely : (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Chief CIT or CIT before the 1st day of July, 1973 or before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT vs. Surat Art Silk Cloth Manufacturers Association (1980) 121 ITR 1 (SC) : TC 23R.195, the question before the Supreme Court was as to what was meant by object of general public utility. There an application was made by Surat Art Silk Cloth Manufacturers Association for registration. Considering the object of the Association in the constitution of the association, the Court held that if the dominant or primary purpose of the assessee was to promote commerce and trade in art silk yarn, raw silk, cotton yarn, art silk cloth, silk cloth and cotton cloth as set out in various clauses of the objects of the association, it could not be said that it was not for charitable purpose. It was also observed that even if some activities have been u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular trade, business or profession, it cannot be said that such trust, association or institution cannot make application under s. 12-A of the Act. Relying on objects of the petitioner-association in the Constitution of Rules and Regulations annexed to the petition, it was urged by Mr. Soparkar, that the objects enumerated therein are of general public utility. Rule 3 states that the association was established with a view to protect general interest of plastic manufacturers and to encourage allied interest and form co-operation amongst them; that it was to work directly or indirectly for the welfare of the interest of plastic manufacturers class; to make research for the development of plastic industry; to resolve any dispute between t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to s. 12-A(a) brought in force w.e.f. 1st October, 1991. The said proviso reads thus : Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of ss. 11 and 12 shall apply in relation to the income of such trust or institution - (i) from the date of the creation of the trust or the establishment of the institution if the Chief CIT or CIT is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons : (ii) from the 1st day of the financial year in which the application is made, if the Chief CIT or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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