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Commissioner Of Income-Tax vs Agricultural Produce And Market ... on 28 March, 2007

In the case of CIT vs. Agricultural Produce and Market Committee (supra), the Hon'ble Bombay High Court - Nagpur Bench has held that there is no requirement under the Act that an institution constituted for advancement of any object of general public utility must be registered as a trust. Therefore, in the present case before us, mere because the assessee association is registered as company under sec. 25 of the Companies Act, that by itself cannot be a ground to refuse registration under sec. 12A/12AA of the Act. Thus, this ground of rejection of registration by the Commissioner of Income-tax, is also rejected.

The Assistant Commissioner Of Income ... vs Thanthi Trust Etc. Etc on 31 January, 2001

In this respect, a reference may be made to the decision of Hon'ble Supreme Court in the case of Asstt. CIT vs, Thanthi Trust (2001) 247 ITR 785 (SC). Thus, mere because there was a surplus from the activity of micro financing, that by itself, cannot be a ground to say that the assessee does not exist for charitable purpose particularly when under the Memorandum of Association and Articles of Association, it has been clearly provided that the profit shall not be distributed amongst the members but shall be utilized towards its objects, and in the case of dissolution, any property remaining after meeting out the liability shall be 17 transferred to the association having similar object. Therefore, the rejection of the registration of trust on this score is also unjustified.
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