TMI Blog2021 (5) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... basis. Bye-laws also provide social welfare activities such as growing of trees for environments, de-addiction drug campaign, welfare of girl child, and also provide legal awareness among the general public. The dominant purpose of assessee-society is to provide infrastructure facilities to its members, which are necessary to ensure quality service of lawyers to the litigating public, to spread legal literacy, promote law reforms and provide legal assistance to the litigants. While considering the application of the assessee for grant of registration, it appears that the ld.CIT(E) has not appreciated these very vital objects. He simply carried by the assumption that since society was formed for construction of building for its members, benefits of which only restricted to the members, and not to the general public at large. It is settled proposition of law that for the purpose of registration u/s 12AA of the Act, the threshold condition i.e. genuineness of the activities is to be decided with the object clause of institution. Hon'ble Apex Court in case of CIT vs. Andhra Chamber of Commerce [ 1964 (10) TMI 19 - SUPREME COURT] held that an object beneficial to a section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view that the main activity of the assessee was to construct and allot the chambers to the members of District Bar Association, and these activities and benefits restricted only to the members of District Bar Association, who were professionals and not general public. In other words, in the opinion of the ld.CIT(E), the society was formed for specific purpose and for the benefit of specific group of professional people, and therefore, the same could not be said to be activities carried out for the general public purpose. He further observed that even for the year ending as on 31.3.2019 no expenditure has been done on charitable activities. On this premise, the ld.CIT(E) rejected the application of the assessee filed under section 12AA interalia holding that genuineness of the activities of the assessee could not be established; and that the assessee has not incurred any expenditure for activities of general public importance. Aggrieved by order of the ld.CIT(E), the assessee-society is now in appeal before the Tribunal. 4. Before us, the ld.counsel for the assessee reiterated submissions made before the lower authority. He further submitted that the assessee-society is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advancement of any other objects of general public utility , and therefore, assessee not entitle for registration under section 12AA of the Act. 7. We have considered rival submissions and gone through the record carefully. We also gone through various materials placed on record and also case laws cited. The issue for adjudication before us is, that whether the ld.CIT(E) is correct in rejecting the application of the assessee-society seeking registration under section 12AA of the Income Tax Act, 1961 ? Before embarking upon an inquiry on the facts and reasoning given by the ld.CIT(E) in order to find out whether the assessee society is entitled for registration within the meaning of section 12A(a) of the Act, we deem it appropriate to bear in mind the scheme of the Income Tax Act for assessments of charitable institution. Therefore, it is imperative upon us to take note of the relevant part of the provisions viz. sections 2(15). It reads as under: Section 2(15) charitable purpose includes relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of a trust or institution made under clause (a) or clause (aa) or clause (ab) of sub-section (1) of section 12A, shall- 48[(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about,- (i) the genuineness of activities of the trust or institution; and (ii) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects, and may also make such inquiries as he may deem necessary in this behalf; and] (b) after satisfying himself about the objects of the trust or institution and the genuineness of its activities 49[as required under subclause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause], he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause (ii) shall be passed unless the applicant has been give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case on hand, the basis on which the ld.CIT(E) rejected the claim of the assessee is mainly that the purpose for which the society was formed is for the benefit of specific group of professionals and to carter their specific purpose, which do not come under the definition of section 2(15) of the Act. While going through the contents of bye-laws of the society filed by the assessee, it interalia provide that the society was established for the welfare, construction and allotment of chambers in the District Court Complex, Barnala for the members District Bar Association, Barnala. It further provides that all the incomes, earnings whatsoever derived shall be solely utilized and applied towards the promotion of its aims and objectives only as set forth in the memorandum of association, and that the society will work on no profit and no loss basis. Bye-laws also provide social welfare activities such as growing of trees for environments, de-addiction drug campaign, welfare of girl child, and also provide legal awareness among the general public. The dominant purpose of assessee-society is to provide infrastructure facilities to its members, which are necessary to ensure quality servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt incidence of benefits rests with individual lawyers while prosecuting any litigation in the Court, but one has to understand our judicial system before branding such society as a group of some professionals working for their benefits only. Attainment of justice for all the parties of the case and the society at large is the main object of our judicial system. Bar Associations are voices of voiceless. The Bench and Bar are the essential partners in judicial dispensation, and therefore, considering the importance of Bar Association in every adjudicating body, particular space is being earmarked and maintained for Bar Association and for litigants. Here at Income Tax Appellate Tribunal, we also provide rooms for Bar and for litigants. Thus, working space for the professional is an integral part of infrastructure for judicial dispensation. The ld.CIT(E) failed to comprehend this aspect in right perspective while rejecting the application of the appellant. In the present case, for consideration of application for registration under section 12AA of the Act, the ld.CIT(E) has to determine the case of the assessee on the basis of the bye-laws. 11. Having regard to over all fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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