TMI Blog2021 (6) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... ANDHRA PRADESH HIGH COURT ] held that insofar as public employment is concerned and in particular the government formed by, for and of the people is the employer, even it is to be taken in a restrictive sense, and the employer is the representative of the public or the people - in the ultimate analysis, it is the public that is the employer; qui facit per alium facit per se, and so, to the service rendered by the employees in the public employment, the beneficiaries are the public. On this test the court reached a conclusion that AP Police Welfare Association which is a charitable in its objects, as is quite apparent from the very objectives laid down under the rules framed thereunder, is a body that would constitute a section of the pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemptions), New Delhi ( Ld. CIT(E) ) in the case of the Delhi Welfare And Recreational Club Fund, Delhi ( the appellant ) rejecting the application for grant of registration under section 12A of the Income Tax Act, 1961 (for short the Act ), the appellant filed this appeal. 2. Brief facts of the case, relevant for the disposal of this appeal, are that the appellant is engaged in the activity to promote welfare and recreational activities of the personnel (gazette, subordinate police officers, civilians and class IV employees of Delhi police) and the expenditure was to be incurred on articles of sports-indoor and outdoor games, cost of uniforms etc supplied to teams, magazines and periodicals, entry fee for tournaments, hiring of grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is the settled principle of law that providing benefits to individual or group of individuals would not be a charitable purpose, but providing benefit to general public or section of public would be termed as charitable purpose. On this premise, ld. CIT(E) held that provision of benefit only to its members of Delhi police violates the provisions of section 2(15) of the Act, the compliance of which is mandatory for registration under section 12A of the Act. Application of the appellant was, accordingly, rejected. 4. Assessee therefore filed this appeal stating that the appellant is incorporated for promotion of welfare and recreational activities amongst the personnel of Delhi police which object fulfils the test of section 2(15) and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi clearly establish that the primary objective of the appellant club is to provide benefit to its members of Delhi police personnel only and not to public at large or general public and, therefore, it violates the provisions of section 2 (15) of the Act. This is the sole basis for rejection of the request of the assessee for registration section 12A of the Act. Precisely this is the argument of the Ld. DR also. 7. In AP Police Welfare Case (supra), Hon ble Andhra Pradesh High Court considered a similar question in the light of the decision reported in Oppenheim vs. tobacco securities trust Co Ltd (1951) 1 All ER 16, IRC v. City of Glasgow Police Athletic Association (1953) 1 All ER 747 (HL), and Ahmedabad Rana Caste Association vs. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the higher judicial fora. We accordingly, following the same, hold that the appellant, the Delhi Police Welfare And Recreational Club Fund is charitable in its objects and is a body that constitutes a section of the public, and so, the fund founded for the benefit of such section should be treated as charitable in its objects, attracting thereby the exemption from the exigibility to tax. With this view of the matter, we set aside the impugned order passed by the ld. CIT(E) and hold that the appellant is eligible for registration under section 12 A of the Act and direct its registration thereunder accordingly. 10. In the result, appeal of the assessee is allowed. Order pronounced in the open court on this 28th day of June, 2021. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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