TMI Blog2015 (4) TMI 1288X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered expedient for that purpose including provision of legal, technical and other professional advice and assistance. The object of the assessee was of general public utility and hence charitable in nature. Therefore, the following the decision of the Hon ble Gujarat High Court in the case of Gujarat State Plastic Manufacturers Association [ 1998 (7) TMI 715 - GUJARAT HIGH COURT] we set aside the order of the Director of Incometax (Exemptions), Ahmedabad and direct him to grant registration to the assessee under section 12AA of the Act. Thus, this ground of the appeal of the assessee is allowed. - ITA No.2279/Ahd/2014 - - - Dated:- 29-4-2015 - SHRI N.S. SAINI AND SHRI KUL BHARAT, JJ. Appellant by : Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that from a reading of the above objects shows that the assessee is not carrying on genuine activity of charitable nature, since the assessee is an association allowing benefit only to the manufacturers of ice cream and not the general public. If the assessee was allowed registration, u/s.12A it will be able to obtain donations from public, the same would be utilized only for the benefit of its member of the Association. The income of the Association would be tax free even though the benefit was not given to public at large and the activities were also not of general public utility. He observed that at best, it was only a mutual society, as decided in the case of Mahavrao Scindia Enclave Resident Welfare Society, 52 SOT 125, and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Hon ble Supreme Court in the case of Additional CiT Vs. Surat Art Silk Cloth Manufacturers Association, 121 ITR 1 (SC) wherein it was held that if 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 further observed that even if some activities have been undertaken in the course of carrying out primary purpose of trust or institution, it would not cease to be a trust or institution for charitable purposes. It was, therefore, held that predominant object of the activity of the associatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts specified in the constitution and in the light of the law laid down by the Hon ble Supreme Court in the above two cases, we have no hesitation in holding that the respondent has committed an error in law in rejecting the application for registration under section 12A of the Act. 8. We find that in the present case also, as noted by the Director of Income Tax (Exemptions), Ahmedabad, the object of the assessee was to encourage, protect, promote interest of manufacturers of the icecream and frozen dessert and to promote expansion of market for icecream and frozen dessert and to promote and improve quality and variety of ice-cream and frozen dessert and to take all such steps as may be considered expedient for that purpose inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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