Assessee developing and protecting interest of commerce and industries is entitled to sec. 12A registration: ITAT

Case Details: Federation of Trade Association of Pune v. CIT (Exemptions) - [2021] 132 taxmann.com 87 (Pune - Trib.)

Judiciary and Counsel Details

• • R.S. Syal, Vice President and S.S. Viswanethra Ravi, Judicial Member
  • Rajiv Thakkar for the Appellant. 
  • T. Vijaya Bhaskar Reddy for the Respondent.

Facts of the Case

Assessee-Federation of Trade Association of Pune has moved an application for grant of registration under section 12A. The Commissioner (Exemption), after considering aims and objects, held that assesssee was a members’ association and all activities were limited to its members and not to the general public at large to fall within clause ‘advancement of any other object of general public utility. Accordingly, the assessee wasn’t entitled to registration. Aggrieved-assessee filed the instant appeal before the Pune Tribunal.

ITAT Held

The Tribunal has held that on going through objects of assessee-trust, it was found that it had been set up to promote, develop and protect interests of trade and commerce which fall within the scope of ‘advancement of any other object of general public utility.
Further, bifurcation of revenue and expenses showed that none of the activity was in the nature of trade, commerce, or business. Thus, assessee satisfied condition, namely, objects of trust should be of advancement of any other object of general public utility and secondly, no activity in nature of trade and commerce or business, etc., should be carried on by it.
Therefore, the assessee fulfilled requisite conditions for falling under head ‘charitable purpose’ as defined under section 2(15)

List of Cases Referred to

• • CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC) (para 5).