Case Law Details
Brief of the case:
In the case of Pune District Security Guards Board vs CIT, ITAT Pune held that welfare bodies formed under Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 were eligible for registration under section 12AA even though they charge fee for their services.
Facts of the case:
The assessee is a Board established with the main object of regulating employment of Private Security Guards employed in factories and other establishments. Further, it endeavors to make better provisions for their terms and conditions of employment and welfare. The assessee Board has been established under the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981. The assessee made an application for grant of registration u/s. 12AA of the Act. The same was rejected by the Commissioner of Income Tax as he held that the objects of the assessee fall under the category of ‘general public utility’. The assessee is charging fee in lieu of services rendered. In view of the amended provisions of section 2(15), the activities of the assessee/Board are not in the nature of charity.
Contention of the revenue:
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