Monday, January 6, 2014

An object to organize 'Maharaja Agrasen Jayanti' especially for Agarwal community isn't charitable in nature

Shree Maharaja Agrasen Jyanti organized mainly for Agarwal community, objects of assessee were meant for benefit of a particular community and, therefore, it was not eligible for registration.

The Tribunal held in favour of revenue as under:

1) The documents filed on record suggest that most of the objects of assessee were meant for the benefit of Agarwal community only;

2) There were certain other objects like establishment of hospital, dharamashala, library, etc., but the assessee since its inception has not carried out any such activities meant for the general public;

3) Since nothing has been provided by the assessee for relief of the poor, education or medical relief, the last provision in the definition of 'charitable purpose' would be considered, i.e., 'advancement of any other object of general public utility';

4) In the preceding year of making registration application, the assessee has mainly organized Shree Maharaja Agrasen Jayanti meant for Agarwal community only. It could not be treated having any charitable purpose for advancement of any other objects of general public utility;

5) Thus substantially the objects of the assessee are meant for the benefit of particular community only and rest of the objects have not been carried out by it since its inception;

6) Merely because dharamashala was created in religious place at Mathura, it could not be said that the dharamashala was meant for charitable or religious purpose. There should be something more to suggest its nexus with the religious or charitable purpose. Therefore, assessee was not eligible for registration under section 12AA - Shri Agrawal Sabha v. CIT [2013] 40 170 (Agra - Trib.)

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