ICG-IISU Alumnae Association-Bandhan Vs CIT (Exemption) (ITAT Jaipur)
ITAT Jaipur held that the Alumni Association cannot be said to be working for the benefit of its members only and the same will amount for the benefit of public at large. Accordingly, Alumni Association is for the benefit of public and eligible for registration. Thus, appeal is allowed.
Facts- CIT(E) has rejected the claim of registration under section 12AA of the Income Tax Act of the assessee [ICG-IISU Alumnae Association-Bandhan] on the ground that trust is meant for the benefit of its members and not for public at large and violation of section 13(1)(c) and 12AA and business/ commercial activities. Being aggrieved, the present appeal is filed.
Conclusion- The expression ‘public’ includes cross section of public. It is well settled that for satisfying the requirements of Section 2(15), it is not necessary that the benefit should reach each and every poor person in the state or country.
Coordinate Bench at Ahmedabad in the case of Parul University Alumni Association v. CIT (E) has allowed the grant of registration under section 12AA holding that the Alumni Association cannot be said to be working for the benefit of its members only and the same will amount for the benefit of public at large.
