All India Motor Transport Congress Vs CIT (Exemption) (ITAT Delhi Bench)
A Trade Body Is Not Merely A Members’ Club—Promotion Of An Industry Advances General Public Utility U/s 2(15); Registration U/s 12A & 80G Restored
Background
The assessee, All India Motor Transport Congress, is a society established in 1951 for promoting & protecting the interests of the motor transport sector. It had enjoyed registration u/s 12A & approval u/s 80G for several years.
The CIT(E), however, rejected its fresh application for registration u/s 12A by order dated 24 December 2025. According to the CIT(E), the activities of the society were exclusively intended for the mutual benefit of its members & did not benefit the public at large.
On identical reasoning, the assessee’s application for approval u/s 80G(5)(ii) was also rejected. The assessee challenged both orders before the Tribunal.
Assessee’s Contentions
The assessee contended that, at the stage of registration u/s 12A & approval u/s 80G, the CIT(E) was required to examine its objects as contained in the Memorandum of Association & determine whether its actual activities were aligned with those objects.
The CIT(E) had travelled beyond this limited inquiry & virtually assumed the role of the AO by examining whether particular activities or receipts qualified for exemption in individual years.
