Law:

Section:

Section 12A, read with section 2(15), of the Income-tax Act, 1961 - Charitable or religious trust - Registration of - Assessee was a registered society - It was formed with main object to encourage and promote development of trade and commerce between India and Japan and to facilitate economic co-operation between two countries, etc. - As per memorandum of association, all income, earnings, movable/immovable property, members' subscription, and contributions of society were to be solely utilized and applied towards promotion of its aims and objects only and not for purpose of making profit - Whether on facts, assessee's application for registration under section 12A was to be allowed - Held, yes FACTS The assessee was a registered society. Its objects and aims indicated in its memorandum of association were :-To undertake, encourage, facilitate and promote the development of trade, industry and commerce between India and Japan in general, without any element of profit; 2. to facilitate economic co-operation and strengthen the relationship between India and Japan; 3. to establish and exchange social relationship among members; 4. to promote education of young Japanese; 5. to promote mutual interest between members; 6. to invite intellectuals, industrialists, scholars, creative artists, etc. to address the seminars/conferences conducted by the Society whenever desired; and 7. to collect and discuss among its members, information pertaining to environment protection and conservation or any other matters related thereto. It was clearly stipulated in the said document that all the income/earning of the society was to be utilized and applied towards promotion of its aims and objects and not for making profit. The assessee made an application to the Director of Income-tax (Exemptions) for its registration under section 12A. The application was rejected on the ground that the objects of the society were independent and distributive and even some of them did not fall within the ambit of 'Charitable purpose' as stated in section 2(15 ). It was also held that the beneficiaries of the Society were not likely to be the Indian public or even a segment thereof. On appeal, the…

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