CHHATTISGARH STEEL RE-ROLLERS ASSOCIATION, RAIPUR,RAIPUR V. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL, BHOPAL

ITA 467/RPR/2024

AI Insights

The case involves the Chhattisgarh Steel Re-Rollers Association appealing against the decision of the Commissioner of Income Tax (Exemption), Bhopal, which had rejected their application for registration under section 12AB. The Tribunal examined whether the Association's activities, which include organizing events like the 'All India Steel Conclave' and facilitating networking among steel manufacturers, qualify as charitable under the Income Tax Act. The Tribunal referenced several judicial precedents to support the view that promoting trade and commerce can be considered a charitable purpose if it benefits a section of the public and not just specific individuals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 106810 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-11-2024
• Assessment Year: misc
• Appeal Filed On: 25-10-2024
• Other Referred Cases: Shri Sarafa Association vs CIT (2007) 294 ITR 262 (MP), Confederation of Real Estate Developers Association of India vs ACIT (2020) 185 ITD 90 (Mum.), Federation of Trade Association of Pune vs CIT (2022) 192 1TD 138 (Pune), Builders Association of India vs DCIT (2015) 43 CCH 615 (Mum. Trib.), Shaheed Nand Kumar Patel Vishwavidyalaya vs CIT in TAXC No. 187 of 2024 dt. 09.09.2024, CIT vs Chhattisgarh Urology Society (2018) 303 CTR 299 (Chhattisgarh), Pragatisheel Chhattisgarh Satnami vs. CIT(E) in ITA no. 106/RPR/2018 vide order dt. 21.09.2022, Swayam Sidhha Foundation Society vs CIT in ITA no. 93 & 312/RPR/2023 dated 22.01.2024, Shree Vimalnath Jain Shwetamber Mandir Trust vs CIT in ITA no. 50/RPR/2018, dt. 16.01.2019, Bhagwan Mahavir Purusharth Prerna Nidhi Nyas vs CIT (2012) 144 TTJ 379 (Jai.), Kul Foundation vs CIT (2015) 43 CCH 1 15 (Pune), CIT vs Andhra Chamber of Commerce (1965) 55 ITR 722 (SC), Ahmedabad Rana cast Association vs CIT (1971) 82 ITR 704 (SC), CIT vs Gujarat Maritime Board (2007) 295 ITR 561 (SC), Shiva Shakti Sai Anugrah Mahapeetam vs DDIT (2014) 42 CCH 14 (Hyd.), Institute of Chartered Accountants of India vs DGIT (2011) 245 CTR (Del.) 541
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.L.ANURAGI
• Assessee Lawyers: R. B. DOSHI
• Keywords: Business income; Gift; Charitable institution
• Section: 192; 43; 22; 12A

Judgement Text

"आयकर अपीलीय अिधकरण, रायपुर Ɋायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR ŵी रिवश सूद, Ɋाियक सद˟ एवं ŵी अŜण खोड़िपया, लेखा सद˟ क े समƗ । BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं. / ITA No: 467/RPR/2024 (िनधा[रण वष[ Assessment Year: N/A) Chhattisgarh Steel Re-Rollers Association, 1st Floor, Sona Tower, Ramsagar Para, Raipur, C.G., 492001 v s Commissioner of Income Tax (Exemption)- Bhopal PAN: AAAAC8682R (अपीलाथŎ/Appellant) . . (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से /Assessee by : Shri R. B. Doshi, CA राजˢ की ओर से /Revenue by : Shri S. L. Anuragi, CIT-DR सुनवाई की तारीख / Date of Hearing : 21.11.2024 घोषणा की तारीख/Date of Pronouncement : 26.11.2024 आदेश / O R D E R Per Arun Khodpia, AM: The captioned appeal of the assessee is directed against the order of Commissioner of Income Tax (Exemption), Bhopal dated 29.08.2024, rejecting the assessee’s application for grant of registration u/s 12AB under the new provisions of Income Tax Act, 1961 (in short “the Act”). 2. The grounds of appeal raised by the assessee are as under: 1. Ld. CIT (Exemption) was not justified in rejecting application filed by appellant for registration u/s 12AB and in refusing to grant registration without appreciating the facts of the case properly. The rejection order 2 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal passed by Ld. CIT (Exemption) u/s 12AB(1)(b)(ii)(B) is arbitrary, illegal and not justified. The appellant is entitled for registration u/s 12AB. 2. The appellant reserves the right to amend, modify or add any of the ground/s of appeal. 3. At the outset, Ld. AR of the assessee have placed his contentions along with written submission, comprises therein the list of various judicial pronouncement relied upon, the same are extracted as under: Chhattisgarh Steel Re-Rollers Association ITA No. 467/RPR/2024 (Assessee) Submission of assessee 1. By-laws: - i) Bye Laws of Society is at PN 35 to 44 of PB. ii) Objects at PN 36 of PB. 2. Reason given for rejecting application is: - i) No charitable activity is carried out and association not established for general public. ii) It exists to facilitate steel manufacturers and other stake holders, small group of members relating to steel manufacturers. iii) All India Steel Conclave organized at Hotel Mayfair, Raipur, aimed to create awareness in steel manufacturers, iron ore minors etc. for promoting business needs of steel manufacturers. Majority expenses incurred on transportation, boarding and lodging. 4. Association established to safeguard the interest of its members being steel manufacturers, address various issues arising in the course of business etc. 5. Such associations fall in the definition of \"charitable purpose\" in the limb of \"advancement of any other object of general public utility\". Reliance on: - 3 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal i) Shri Sarafa Association vs CIT (2007) 294 ITR 262 (MP) ii) Confederation of Real Estate Developers Association of India vs ACIT (2020) 185 ITD 90 (Mum.) iii) Federation of Trade Association of Pune vs CIT (2022) 192 1TD 138 (Pune) iv) Builders Association of India vs DCIT (2015) 43 CCH 615 (Mum. Trib.) 6. Scope of powers u/s 12AB CIT to call for documents/ information or make enquiries in order to satisfy about genuineness of activities, compliance of requirements of any other law and satisfy himself about objects of the association. None of the objects held to be non-charitable. Registration could not be denied. Reliance on:- i) Shaheed Nand Kumar Patel Vishwavidyalaya vs CIT in TAXC No. 187 of 2024 dt. 09.09.2024 ii) CIT vs Chhattisgarh Urology Society (2018) 303 CTR 299 (Chhattisgarh), relevant finding at para no. 11. iii) Pragatisheel Chhattisgarh Satnami vs. CIT(E) in ITA no. 106/RPR/2018 vide order dt. 21.09.2022, relevant finding at para no. 8. iv) Swayam Sidhha Foundation Society vs CIT in ITA no. 93 & 312/RPR/2023 dated 22.01.2024, relevant finding at, para no. 10. 7. Allegation of benefit to steel manufacturers only i) Condition in sec. 13(1)(b) cannot be looked into at the time of registration. Reliance on:  Shree Vimalnath Jain Shwetamber Mandir Trust vs CIT in ITA no. 50/RPR/2018, dt. 16.01.2019, para 5.  Bhagwan Mahavir Purusharth Prerna Nidhi Nyas vs CIT (2012) 144 TTJ 379 (Jai.).  Kul Foundation vs CIT (2015) 43 CCH 1 15 (Pune). ii) Steel manufacturers are a section of society 4 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal a) Law requires benefit to a section of public as against specified individuals. No benefit derived by any specified individuals. All steel manufacturers included. b) Section of public means people who are knit together by a common quality of public or impersonal nature. c) Reliance on: -  CIT vs Andhra Chamber of Commerce (1965) 55 ITR 722 (SC)  Ahmedabad Rana cast Association vs CIT (1971) 82 ITR 704 (SC) 8. \"General public utility\" is of widest connotation as held in CIT vs Gujarat Maritime Board (2007) 295 ITR 561 (SC) (para 10) and Shiva Shakti Sai Anugrah Mahapeetam vs DDIT (2014) 42 CCH 14 (Hyd.). 9. The event \"All India Steel Conclave\" organized by assessee once in a while. Aimed at welfare of the steel manufacturers, iron ore minors, coal traders etc. It was for general public utility. Summary of judicial pronouncement Shri Sarafa Association vs CIT (2007) 294 ITR 262 (MP) Application for registration u/s 12A was rejected against which writ petition was filed by the assessee. Vide para 5, Hon'ble High Court considered the ratio of decision in CIT vs Bar Council of Maharashtra (1981) 22 CTR (SC) 106 wherein it was held that trading bodies like Andhra Chamber of Commerce, Surat Art Silk Manufacturer Association have been held to be constituted with a view to advance an object of general public utility because their primary or dominant purpose was to promote and protect industry, trade and commerce, even though some benefit through some of their activities did accrue to their members and it was held in the case of Andhra Chamber of Commerce that income derived from diverse sources was exempt from tax liability u/s I l . Vide para 6, it noted the ratio in CIT vs Andhra Chamber of Commerce AIR 1965 SC 1281 wherein it was held that in the promotion of trade, commerce and industries, public is vitally interested. \"Charitable purpose\" is inclusive and not exhaustive. Even if the object or purpose may not be regarded as charitable in its popular signification as not tending to give relief to the poor or for medical or education relief, it would still believe in the expression 5 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal \"charitable purpose\" if it advances an object of general public utility, which phrase is not restricted to objects beneficial to the whole mankind. An object beneficial to the section of a public is an object of general public utility. Vide para 8, Hon'ble High Court noted the objects of the petitioner and held vide para 9 that promotion of commerce and trade is a predominant object which has been held by Hon'ble Supreme Court in Surat Art Silk Manufacturer Association as an object of public utility. Confederation of Real Estate Developers Association of India vs ACIT (2020) 185 ITD 90 (Mum.) The objects of the assessee were to encourage fraternity, feelings of cooperation and mutual help among the members of the confederation to encourage adoption and promotion of fair business practices according to an ethical code of fair business practices etc. The revenue generated by the assessee included membership fee, receipts from conventions, sponsorship income and promotional income. The AO was of the view that the assessee was involved in commerce activities for a fee or cess, either directly or indirectly and that fundamental requirement of charity was that the benefit should be for the public and not confined to selective individuals which in the case of assessee was only for the benefit of a limited group of persons i.e. members and real estate professionals. The AO also observed that assessee received substantial amount from holding conventions. Hon'ble Tribunal held as under: - i) Vide para 7, it observed that it was the allegation of the Department that assessee was catering to a limited group of people and not for the benefit of general public at large. Hon'ble Tribunal considered the ratio of decision in Ahmedabad Rana Cast Association vs CIT (1971) 82 ITR 704 (SC) wherein it was held that an object beneficial to a section of public is an object of general public utility. The assessee was set up with the object to address national issues related to real estate sector and better standards for its all member association and therefore, it can be safely held that it is for the benefit of particular section of the public and not for any specified individual. ii) Vide para 9, it considered the objects of the association and observed that for attainment of its objects, the assessee had to carry out certain activities say holding conventions, exhibitions, meetings etc. and it was unable to comprehend as to how simply carrying on the same for the furtherance of the objects on a standalone basis would take the colour of trade, commerce or business. iii) Vide para 10, it observed that in the conventions, eminent personalities from various fields would be roped in for delivering lectures on issues having a 6 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal material bearing on the real estate sector for which on an average fee/ charge was worked out of Rs. 30,000/- to 32,000/- which would include boarding and lodging facilities. It also considered the argument that displaying the advertisements during the conventions would again be a step towards furtherance of the objects of the assessee trust as it would benefit the members who would become aware of the services rendered by such sponsors. iv) Vide para 11, it observed that the convention held by the assessee was only once in a year and the activities conducted therein like arranging lectures of eminent personalities were for the benefit of its members by augmenting their knowledge in real estate sector. Regarding sponsorship, it observed that the objective of allowing display of advertisements/ banners was in order to make the members aware of the services rendered by such sponsors. The convention would be held only once in a year that too spread over a short span of only two days and such standalone event cannot be brought within the meaning of trade, commerce or business. It agreed with the claim of assessee that the surplus, if considered in the back drop of the size of association, cannot be held to be substantial. v) Vide para 11 (just before starting of para 12) it was concluded that holding of convention and consequent receipts therein like participation fee, sponsorship fee etc. cannot be brought within the meaning of trade, commerce or business. Federation of Trade Association of Pune vs CIT (2022) 192 LTD 138 (Pune) Vide para 3, Hon'ble Tribunal considered the objects of association and observed vide para 4 that it was setup to promote, develop and protect interest of trade and commerce and also to foster feeling of unity and cooperation among the persons engaged in trade and commerce. Vide para 5, it noted the ratio of decision in Andhra Chamber of Commerce (1965) 55 ITR 722 (SC) wherein it was held that public is vitally interested in promotion of trade, commerce and industry and therefore, it falls within the scope of \"advancement of any other object of general public utility\". Builders Association of India vs DCIT in ITA No. 550/Mum/2012•, (2015) 43 CCH 615 (Mum. Trib.) Vide para 2, Hon'ble Tribunal noted the objects of the association. Vide para 3, it noted that it received amount towards contribution by center for holding exhibition and 7 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal conference, contribution for programs seminars, awards and sponsorship and training. It noted that exhibitions and conferences and seminars were for the benefit of its members and to meet out such expenses members used to contribute. Regarding programs, seminars etc., it noted that they were conducted to educate the members and appraise the latest development in Government laws and up-gradation in system of overall functioning of the construction industry, which is one of the objects of assessee. It was held by Hon'ble Tribunal as under: - i) Vide para 7, it was held that the nature of receipts received by the assessee shows that assessee carried out the activities as per its objects only and most of the receipts were received from the members. It is not the case of the Department that the activities were carried out for outsiders and for commercial purpose solely to earn business receipts. To be hit to proviso to sec. 2(15), the dominant object of general public utility should be in the nature of trade, commerce and industry. ii) Vide para 8, it considered the ratio laid down by Hon'ble High Court in Institute of Chartered Accountants of India vs DGIT (2011) 245 CTR (Del.) 541 and held that none of the receipts can be said to be arising from the activities which can be said to be for the purpose of business, trade, commerce. All the activities were carried out in accordance with the objects. iii) Vide para 9, it further held that if any transaction is incidental or ancillary towards fulfillment of the object, it will not amount to business/ trade/ commerce unless there is some intention to trade/ commerce on a permanent basis for a reasonable continuity. 4. Based on aforesaid submissions, it was the prayer that the order of Ld. CIT(E) was not justified in rejecting the application filed by the assessee in Form No. 10AB for grant of registration u/s 12AB. It is submitted that the assessee is entitle for registration u/s 12AB, therefore, considering the settled position of law and objects of the assessee association, registration u/s 12AB could not be denied. 8 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal 5. Ld. CIT-DR on behalf of the revenue have vehemently supported the orders of Ld. CIT(E). 6. We have considered the rival submissions, perused the material available on record and the judicial pronouncements relied upon by the assessee. In the present case, the assessee association have applied for registration u/s 12AB by filing Form 10AB before the Ld. CIT(E). The assessee was granted with opportunities to furnish necessary information before the approving authority. On perusal of the information furnished by the assessee, Ld. CIT(E), being dissatisfied have rejected the application of the assessee and also cancelled the provisional approval u/s 12AB dated 07.02.2024 in terms of provisions of Section 12AB(1)(b)(ii)(B) of the Act. The relevant observations of the Ld. CIT(E) are culled out as under: The assessee has applied in Form 10AB for registration u/s 12AB under the new provision of Income Tax Act, 1961. Consequently, opportunity letters were issued to the assessee and various documents/details were called for; to process the said application and to verify the objects and activities of the assessee. The assessee has submitted various details time to time. 2- The association is established under Madhya Pradesh Non-Trading Corporation Act, 1962 with the Registrar of Firms& Societies, MP, Bhopal on 27th May, 1981. As per the Memorandum of Association submitted by the assessee, the Association is created to achieve 07 Nos. of objects. On going through the objects it is observed that the objects are intended to facilitate manufacturers of Steel Re-rollers and people of 9 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal similar business in achieving various business ends. some of the objects of the association as mentioned in its Memorandum of Association are as under: \"(i) To organize and unite the manufacturers of Steel Rerollers and people of similar business. (iv) To decide mutually the business dispute amongst the members. (v) To provide members as far as possible all the amenities and recreations. \" 3- 0n perusal of above objects, it is evident that the 'Association' has not been established to undertake charitable activities for the General Public but has been established to facilitate steel manufacturers & other stockholders and it acts as a networking flatform for them. 4- As per the objects mentioned in the Memorandum of Association, the assessee has undertaken various activities. Most of the objects prescribe activities targeting only a small group of members which is restricted by profession related to steel manufacturers & other related stockholders. Even the activities are not related to charitable in nature rather these activities focus on business growth of the members. The core aim of the Association is to bring together all the stakeholders related to steel manufacturing for mutually benefit in their business activities. The objects mentioned above becomes more clear on examination of activities undertaken by the association which is discussed in later paras. 5- Vide this office letter dated: 02.08.2024, clarification on some activities undertaken by the assessee in F.Y. 2022-23, was sought which have been replied to by the assessee as under: 10 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal ---Query by this office: As per Income & Expenditure Account for the period 01.04.2022 to 31.03.2023, it is found that expenditure of Rs.2,80,28,261/- has been incurred on event expenses. Please explain the purpose of event and who were the participants in this event. Please provide location of event and summary of expenses along with supporting documents. In Response to the above query the assessee has submitted as follows: “….The purpose orthe even is to give awareness—to the Steel Manufacturers, Iron Ore Miners, Coal Traders and all their members about the new technology the steel Industry New technology awareness ultimately saves time and manpower in the steel industry. This also saves environment from the pollution and also saves usage of electricity in the steel industry. The event offers great opportunities for two days of knowledge sharing. Steel manufacturers, end-users, iron ore miners, coal traders, and Ferro alloy supplier's gathers on one networking platform and strengthen business bonds under one roof.. \" Comment of the undersigned on above reply: --The event named \"All India Steel Conclave\" - a 2-days residential conclave held on 25th- 26th March 2023, was organized by the assessee in partnership with CGSIMA & MSP at Mayfair Hotel & Resorts, Raipur. -- The aim of the event as submitted by the assessee was to give awareness to the Steel Manufacturers, Iron Ore Miners, Coal Traders and all their members about the new technology in the steel industry. 11 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal --lt also aimed to bringing Steel manufacturers, end-users, iron ore miners, coal traders, and Ferro alloy supplier's on one networking platform and strengthen business bonds under one roof. --Thus, the event was organized for promotion of business needs of the steel manufacturers and was in no way intended to achieve any charitable purpose. --The summary of event expenses submitted by the is as under: --From above expense details, it is found that no expense is related to any charitable activity. All the expenses are incurred on arranging the event and for making arrangements for transportation, boarding and lodging of the attendees of the event. Some expenses are incurred on arranging gifts, momento, artefacts, photo, music, motivational speakers etc. which are all in non-charitable nature. 6—Further, during F.Y.2024-25 the association has spent only Rs.3,02,261/- under Charity and Donation A/c which is less than 1% of the total receipt of the assessee. 12 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal Thus, the predominant nature of the assessee is facilitating Steel Manufacturers in their business activities and networking and Charitable Activities are undertaken at a minimal scale and hence, the activities of the assessee cannot be categorized under 'Charitable Activities' which is pre-requisite for registration u/s 12AB. 7—0n perusal of the various objects and activities, it is observed that the purpose of the assessee is to protect interest of its members who are engaged in business of Steel Manufacturing and to provide various services to Steel manufacturers, end-users, iron ore miners, coal traders, and Ferro alloy supplier's in relation to trade, commerce and business. The assessee is not engaged in any public charitable work and does not fall in any category of Section 2(15) of the Act. 7-- Considering the facts of the case, the application of the assessee filed in Form IOAB for grant of approval u/s 12AB of the Act is hereby rejected and provisional approval u/s 12AB in Form 1OAC vide URN No. AAAAC8682RE20231 dated 07.02.2024 granted by CPC is also hereby cancelled as per the provisions of section 12AB(1)(b)(ii)(B) of the Act. 7. Adverting to the contentions raised by the Ld. AR, we observed that the assessee association has been established with the following objects as per the Memorandum of Association and by laws of the association: 3. The object for which the Association shall be created are (l) To organize and unite the Manufacturers of Steel Re-rollers and people of similar business. (ii) To foster feelings and spirit of brotherhood, amongst its members as well as others. 13 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal (iii) To submit the difficulties demands, requirements of the members to the concerned Departments whether Government or Semi Government of local bodies, and Government undertakings I. e. Bhilai Steel Plant, SAIL, Bharat Refractory Plant, etc. (iv) To decide mutually the business dispute amongst the members. (v) To provide members as far as possible all the amentitles and recreations. (vi) To help and give co-operation to Social, Educational and charitable institutions. (vii) To do all such other lawful things as are Installed to the Educational Improvement of the above objects. Provided that the Association shall not support with Its funds, or endeavour to impose on, or procure to be observed by its members or others, any regulation or restriction which, if on object of the Association, would make It a Trade Union. 8. While making the reference of the aforesaid objects of the assessee association, we find that the association is established for the purpose to organize and unite the manufactures of steel Re-Rollers and people of similar business and certain other connected / incidental / ancillary objects referred to (supra). In view of such objects, it can be safely gathered that the association is set up for safeguard of the interest of its members and to deal with matters having common interest of the trade. Now the question before us is, whether such objects shall be treated as trade, commerce and business and not the activities in the nature of 14 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal charity. On this aspect, we find force in the contentions raised by the Ld. AR that there was no benefit derived by specified individual. As per law, the benefit is being given to a section of people. We may herein refer to the order of Hon’ble Apex Court in the case of CIT vs Bar Council of Maharashtra referred to (supra), wherein it was held that trading bodies have been held to be constituted with a view to advance an object of general public utility because their primary or predominant purpose was to promote and protect industry, trade and commerce and are eligible for exemption u/s 11. In another case CIT vs Andhra Chamber of Commerce (supra), Hon’ble Apex Court has held that in the promotion of trade, commerce and industries, public is vitally interested, therefore the same is to be considered as for the benefit of a section of public, its object as for general public utility. Further, it is held in the case of Confederation of Real Estate Developers Association of India vs ACIT, ITAT Mumbai (supra) that, if the association was setup only for the activities in accordance with the objects of the assessee association for national issues related to real estate sector and better standards for its members, the same is for the benefit of particular section of the public and not for any specified individual, thus cannot be brought within the meaning of trade, commerce or business. Similarly, in other case laws referred to by the Ld. AR, it is emanating that if the objects of an association are for promotion of trade, commerce and industries, the same falls within the scope of advancement an object of general public utility. It is further noticed that the rejection by Ld. CIT(E) 15 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal on account of considering the expenditure incurred on the conclave conducted by the assessee being in the nature of trade and commerce are not for charitable purpose was not in conformity with the settled position of law also there was no observation by the Ld. CIT(E) that any of the activity of the assessee, apart from activity of the conclave conducted, which is held to be not in the nature of trade or commerce, is in the nature of trade or commerce, therefore, we are unable to concur and coincide with the findings of Ld. CIT(E). 9. In backdrop of aforesaid facts and circumstances, respectfully following the settled position of law, we find that the assessee association fulfils the conditions requisite to fall within the charitable purpose as defined in section 2(15) of the Act, dehors any other infirmity in the eligibility qualifications of the assessee, which would have alleged by the Ld. CIT(E), we therefore, are of the considered view that the order of Ld. CIT(E) cannot be sustained, we, therefore, reverse the same and direct to grant the registration u/s 12AB. 10. In result, appeal of the assessee stands allowed, in terms of our aforesaid observations. 16 ITA No. 467/RPR/2024 Chhattisgarh Steel Re-rollers Association, Raipur vs CIT(E), Bhopal Order pronounced in the open court on 26/11/2024. Sd/- (RAVISH SOOD) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर/Raipur; िदनांक Dated 26/11/2024 Vaibhav Shrivastav आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीलीय अिधकरण, रायपुर/ITAT, Raipur 1. अपीलाथŎ / The Appellant- Chhattisgarh Steel Re-rollers Association, Raipur 2. ŮȑथŎ / The Respondent- CIT(E), Bhopal 3. आयकर आयुƅ(अपील) / The CIT(A), 4. The Pr. CIT, Raipur (C.G.) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 6. गाडŊ फाईल / Guard file. // स×याǒपत Ĥित True copy // "