THE AHMEDABAD ENGINEERING MANUFACTURERS ASSOCIATION,AHMEDABAD vs. THE CIT (EXEMPTION), AHMEDABAD

The grounds of appeal are as under:- “1.1 The order passed by U/s 12AB passed on 30.03.2024 by CIT(Exem), Ahmedabad rejecting the application for registration of the appellant trust u/s 124(1)(ac)(iii) of the Act and cancelling the Assessment Year N.A.

1 The Id. CIT(Exem), has grievously erred in law and or on facts in rejecting the application for registration u/s 12AB of the Act holding that the appellant trust was not for the benefit of public, though the appellant trust had produced enough evidence to prove that it was established and also carrying on activities for the general public utility apart from medical relief etc.

2 That the in the facts and circumstances of the Id. CIT(Exem), ought not to have rejected the application for registration by mis- construing the object clause of the trust and disregarding the activities carried on by it which conclusively proved that the trust was established and carrying on for the advancement of general public utility and as such it was within the ambit of Sec. 2(15) of the Act.

The applicant filed an application for registration of the trust u/s. 12AB of the Income Tax dated 29-09-2023. Date of provisional approval/registration as per Form 10AC was 05-04-2022. The CIT(E) issued notices dated 22-11-2023 and 22-12-2023 thereby calling upon the details and documents. The applicant submitted the reply dated 17-01-2023 along with the details/documents. The CIT(E) after going through the objects held that the objects of the applicant are not for the benefit of public at large but for the benefit of members and employees/ex-employees only. The applicant submitted that the objects are for general welfare and I.T.A No. 1660/Ahd/2024 A.Y. N.A. Page No. 4. Being aggrieved by the order for rejection of registration dated 30-03- 2024, the applicant/assessee filed appeal before us.

There is a delay of 114 days in filing the present appeal for which the applicant/appellant has filed the detailed affidavit thereby stating that due to the medical exigency of one of the trust managing activities of the association (operated for left eye the cataract), the applicant/appellant could not file the present appeal within the statutory time. This reason appears to be genuine and therefore the delay is condoned.

The Ld. A.R. submitted that the Ahmedabad Engineering Manufactures Association is incorporated on 24.10.1959. The appellant association/trust had been granted the approval u/s 12AA from 22.11.1980 by ITO HQ II/A-12/80-8. This Association/Trust is established with the main object to provide a platform for micro, small and medium engineering enterprise to raise their issue with Government's department like GPCB, Sales Tax, ESI, PF, Labour Laws etc and give input in industrial policy maker decision, to arrange social programs for members and for their employees, to support member in industrial crises, upgrade/ educate member with government policies by arranging seminar with government agencies

The ld. D.R. submitted that the assessee’s objects vis-à-vis work which is mentioned in para 6.2 of the order of the CIT(E) clearly mentions that the applicant will be benefiting the employees or ex-employees of the Ahmedabad Engineering Manufacturers Association and its members only and not public at large i.e. general public. Thus, the CIT(E) has rightly rejected the registration u/s. 12AB. The ld. D.R. also relied upon the decision of Hon’ble Punjab and Haryana High Court in case of CIT vs. Truck Operators Association (2010) 328 ITR 636. 8. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that from the perusal of the objects, it is clear that the applicant/appellant is not working for the benefit of general public at large but to the specific section of the society. The objects as per memorandum of association of the Ahmedabad Engineering Manufacturing Association are reproduced and submitted at page 34 and 35 of the paper book submitted by the applicant/appellant. Thus, the CIT(E) has rightly rejected the registration u/s. 12AB of the Act. Beside this, the decision submitted by the applicant are also not identical to the present applicant’s/appellant’s case as in all the other cases, there was a specific object for working towards the welfare of the general public but the same is absent in the clause of the present applicant. The ld. A.R.’s contention that I.T.A No. 1660/Ahd/2024 A.Y. N.A. Page No. the proviso to section 2(15) of the Income Tax, 1961 was not invoked by the CIT(A) is not proper as section 2(15) and proviso thereto is a definition clause/section and thus the same get imbibed while deciding the application for registration u/s. 12AB as the charitable purpose is the definition and how to deal with the charitable institute has to be determined by section 12AB of the Income Tax Act, and registration of the said trust accordingly. The decision relied by the ld. D.R. in case of Truck Operators Association (supra) is relevant to that effect. Thus, the appeal of the assessee is dismissed.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 16-01-2025 (NARENDRA PRASAD SINHA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 16/01/2025 आदेश क त ल प अे षत / Copy of Order Forwarded to:- 1. Assessee

Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file.