Indian Refractory Makers Assisiation, Kolkata V. CIT(EXEMPTIONS), KOLKATA, Kolkata

ITA 2289/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1875 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 05-12-2016
• Court: TRIBUNAL
• Department Lawyers: NIRAJ KUMAR
• Assessee Lawyers: SAJJAN KUMAR TULSIYAN
• Keywords: Charitable institution
• Section: 143(3); 80G; 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA [BEFORE HONBLE SRI N.V.VASUDEVAN, JM & DR.ARJUN LAL SAINI, AM] I.T.A NOS.2289&2290/K OL/2016 ASSESSMENT YEAR : 2014-1 5 INDIAN REFRACTORY MAKERS ASSOCIATION -VS.- C .I.T. (EXEMPTION), KOLKATA KOLKATA [PAN : AADCI 6977 J] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI SAJJAN KUMAR TULSIYAN, ADVOCATE FOR THE RESPONDENT : SHRI NIRAJ KUMAR, CIT(DR ) DATE OF HEARING : 10.04.2017. DATE OF PRONOUNCEMENT : 19.04.2017. ORDER PER N.V.VASUDEVAN, JM THESE ARE APPEALS BY THE ASSESSEE AGAINST TWO ORDER S BOTH DATED 05.10.2016 OF C.I.T(EXEMPTION), KOLKATA REJECTING THE ASSESSEES APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (ACT) AND REJE CTING THE APPLICATION FOR GRANT OF APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961 (ACT) TO THE ASSESSEE. 2. THE FACTS AND CIRCUMSTANCES UNDER WHICH THES E APPEALS ARISE FOR CONSIDERATION ARE AS FOLLOWS :- THE ASSESSEE IS A COMPANY INCORPORATED UNDE R THE PROVISION OF THE COMPANIES ACT, 1956 AS A SEC.25-COMPANY UNDER THE SAID ACT ON 23.01.2014. SINCE THE ASSESSEE HAS OBJECTS OF THE NATURE SPECIFIED IN SECTION 25 ( 1)(A) OF THE COMPANIES ACT, 1956 AND SINCE IT INTENDS TO APPLY ITS PROFITS OR OTHER INCO ME IN PROMOTING ITS OBJECTS AND SINCE IT PROHIBITS THE PAYMENT OF ANY DIVIDEND TO ITS MEMBER S, THE REGISTRAR OF COMPANIES OF WEST BENGAL HAS GRANTED REGISTRATION TO THE ASSESSE E AS A COMPANY LICENCED U/S 25 OF THE COMPANIES ACT, 1956 AND CONSEQUENTLY THOUGH THE ASSESSEE IS A LIMITED LIABILITY COMPANY IT NEED NOT HAVE AN ADDITIONAL WORD COMPAN Y OR LIMITED TO ITS NAME. 2 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 2 3. THE MAIN OBJECTS OF THE ASSESSEE AS PER THE OBJ ECTS OF THE MEMORANDUM OF ASSOCIATION ARE (A)TO PROMOTE, SUPPORT, PROTECT, MAINTAIN, FURTHER, AID AND STIMULATE THE DEVELOPMENT OF THE REFRACTORY INDUSTRY IN INDIA.- (B) TO ESTABLISH RESEARCH OR STUDY CENTRES, LABORAT ORIES AND INFRASTRUCTURE TO EVOLVE IMPROVED DESIGNS, PATTERNS, PRODUCT RANGE, RAW MATE RIALS FOR GROWTH OF REFRACTORY INDUSTRIES OR UNDERTAKE ON BEHALF OF THE MEMBERS OF THE COMPANY SUCH ANALYSIS AS MAY BE REQUIRED BY THEM TO FACILITATE THEM IN THEIR SM OOTH CONDUCT OF BUSINESS. (C) THE ASSOCIATION SHALL FUNCTION WITHOUT ANY OBJE CT OR PURPOSE OF PROFIT, AND NO MONEYS OR SURPLUSES MAY BE DISTRIBUTED BY WAY OF DI VIDENDS TO THE MEMBERS, PROVIDED THAT THERE SHALL BE NO BAR TO PAYMENT OF ANY GENUIN E EXPENSES BY WAY OF SALARY, REMUNERATION, FEES, ETC TO ANY STIPENDIARY, EMPLOY EES, LEGAL COUNSEL, AUDITORS, ADVISORS, ETC. IN FURTHERANCE OF THE ASSOCIATION'S OBJECT. (D) TO ESTABLISH, STRENGTHEN AND UP GRADATION OF HU MAN RESOURCE DEVELOPMENT FACILITIES INCLUDING SKILL UP GRADATION, TRAINING AND LIKE ACT IVITIES, COMMON RAW MATERIAL BANK INCLUDING RAW MATERIAL PROCUREMENT, COMMON TOOL ROO M INCLUDING COMMON TESTING FACILITY, MARKETING INFRASTRUCTURE AND PROVISION OF INFORMATION OF ALL KINDS TO THE INDUSTRIAL UNITS AND BUSINESS CENTRE AND ORGANIZE L EARNING PROGRAMME FOR THE BENEFIT OF INDUSTRIES. 4. THE ASSESSEE MADE AN APPLICATION DATED 06.04 .2016 TO C.I.T.(EXEMPTIONS), KOLKATA FOR GRANT OF REGISTRATION AS A CHARITABLE I NSTITUTION UNDER CLAUSE (AA) OF SUB- SECTION (1) OF SECTION 12A OF THE ACT. THE ASSESSE E ALSO MADE AN APPLICATION DT. 06.04.2016 FOR GRANT OF APPROVAL U/S 80G(5(VI) OF T HE ACT, WHEREBY ANY PERSON GIVING DONATION TO THE TRUST WOULD BE ENTITLED TO AVAIL OF TAX EXEMPTIONS ON SUCH DONATIONS. 3 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 3 5. THERE WAS AN ASSOCIATION BY NAME INDIAN REFRAC TORY MAKERS ASSOCIATION. THIS ASSOCIATION CAME INTO EXISTENCE BY THE EFFORTS OF F OUR COMPANIES NAMELY (I) BEHAR FIREBRICKS & POTTERIES LTD., (B) BURN & CO. LTD., ( C) KUMARDHUBI FIRECLAY & SILICA WORKS LTD., AND (D) RELIANCE FIREBRICK & POTTERY CO . LTD WHO WERE IN THE BUSINESS/INDUSTRY OF REFRACTORY MAKING. THIS ASSOCI ATION WHICH WAS REGISTERED WITH THE REGISTRAR OF SOCIETIES AS EARLY AS 27.01.1958 WAS G RANTED REGISTRATION U/S 12A OF THE ACT BY COMMISSIONER OF INCOME TAX, WEST BENGAL-VII, KOL KATA VIDE CERTIFICATE REGISTRATION DATED 23.06.1983. THE PURPOSE OF FORMING THIS ASSO CIATION WAS TO PROTECT THE INTERESTS OF THE REFRACTORY INDUSTRY IN INDIA AND DEVELOPMENT OF THE INDUSTRY, FURTHERANCE OF THE COMMON INTERESTS OF THOSE ENGAGED IN THE INDUSTRY A ND OTHER OBJECTS. WE WILL REFER TO THIS ASSOCIATION AS IRMA(OLD) TO DISTINGUISH THE SAME FROM THE ASSESSEE AS BOTH THE NAMES ARE IDENTICAL. IRMA(OLD) WAS REGISTERED AS AN AOP WITH PAN AAATI 1163Q FOR INCOME TAX PURPOSES. THE LAST ASSESSMENT OF IRM A(OLD) AS AN AOP WAS COMPLETED U/S 143(3) OF THE ACT BY I.T.O. (EXEMPTION) WARD -1 (1) FOR A.Y.2013-14 ON 18.03.2016 AFTER ALLOWING EXEMPTION U/S 11 OF THE ACT. 6. THERE IS NO EVIDENCE ON RECORD TO SHOW THAT I RMA(OLD) WHICH AS PER THE CERTIFICATE OF REGISTRATION DATED 23.06.1983 GRANTED U/S 12A OF THE ACT IS STATED TO BE A SOCIETY REGISTERED WITH THE REGISTRAR OF SOCIETIES AS EARL Y AS 1958 CEASED TO EXIST AS A SOCIETY AT A LATER POINT OF TIME. HOWEVER, THE CHAIRMAN AND OT HER OFFICE BEARERS OF IRMA(OLD) IN A MEETING OF GENERAL COMMITTEE HELD ON 18.03.2013 RES OLVED THAT AS PER LEGAL ADVICE, THE ACTIVITIES OF IRMA (OLD) SHOULD BE CARRIED OUT BY F ORMING AND REGISTERING AS A NON- PROFIT COMPANY U/S 25 OF THE COMPANIES ACT, 1956. A CCORDINGLY THE ASSESSEE WAS FORMED AND INCORPORATED. FURTHER THE GENERAL COMMI TTEE OF IRMA (OLD) ALSO RESOLVED IN THE MEETING HELD ON 18.3.2013 THAT THE LIABILITY AND ASSETS OF IRMA(OLD) WHICH WAS FORMED ON 27.01.1958 WOULD BE TAKEN OVER BY THE ASS ESSEE WHICH WOULD BE REGISTERED U/S 25 OF THE COMPANIES ACT, 1956 WITHOUT DISSOLVIN G THE OLD ASSOCIATION FORMED ON 27.01.1958. THIS RESOLUTION IN OUR VIEW CANNOT HAVE THE EFFECT OF PUTTING AN END TO THE 4 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 4 STATUS OF IRMA(OLD) WHICH WAS REGISTERED AS A SOCIE TY IN A MANNER KNOWN TO LAW. NEVERTHELESS THE FACT REMAINS THAT THIS RESOLUTION WILL HAVE THE EFFECT OF ASSETS AND LIABILITIES OF IRMA(OLD) TO VEST WITH THE ASSESSEE. 7. IT IS ALSO NOT DISPUTED THAT THE DIRECTORS AN D MEMBERS OF THE ASSESSEE WERE THE CHAIRMAN AND EXECUTIVE OF IRMA (OLD). THE ASSESSEE HAS OBTAINED PAN WHICH IS PAN:AADCI6977J. 8. WITH THE AFORESAID BACKGROUND, THE CIT(EXEMPTIO NS)KOLKATA EXAMINED THE CLAIM OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT AS WELL AS APPROVAL U/S 80G(5)(VI) OF THE ACT. THE FIRST CONCLUSION OF THE CIT(EXEMPTION) WAS THAT IRMA(OLD) WAS NOT DISSOLVED AND THAT FOR A.YS.14-15 TO 2016-1 7 THE ASSESSEE DID NOT ENJOY THE BENEFIT OF REGISTRATION U/S 12A OF THE ACT. ACCORDI NG TO THE CIT(E) THE BENEFIT OF REGISTRATION GRANTED TO IRMA(OLD) CANNOT HOLD GOOD FOR THE ASSESSEE AND TO CLAIM EXEMPTION U/S 11 OF THE ACT, THE ASSESSEE SHOULD GE T REGISTRATION U/S 12A OF THE ACT IN ITS OWN NAME. THIS IS THE CRUX OF THE IMPUGNED ORDE R OF THE CIT(E) IN PARA 1 TO 6 OF HIS ORDER. 9. THEREAFTER THE CIT(E) EXPRESSED HIS OPINION THAT THE ASSESSEE IS NOT ENTITLED TO HAVE REGISTRATION FOR THE FOLLOWING REASONS :- 8. WITHOUT PREJUDICE TO THE ABOVE, FROM THE SUBMIS SION DATED 19-08-2016, THE OBJECTIVES OF THE COMPANY, HAVE BEEN SUBMITTED AS ' TO PROMOTE, SUPPORT, PROTECT, MAINTAIN, FURTHER, AID AND STIMULATE THE DEVELOPMEN T OF THE REFRACTORY INDUSTRY IN INDIA'. FROM THE WEBSITE OF THE COMPANY (WWW.IRMAIN DIA.ORG) . THIS IS CLEAR THAT, THE SERVICES RENDERED BY THE. COMPANY (ANNEXURE D) IS RESTRICTED TO 75 MANUFACTURING & 26 ASSOCIATE MEMBERS AND THE SERVIC ES ARE:- A. PROVIDING TRADE INFORMATION, B. REPRESENTING TO THE AUTHORITIES ON ISSUES OF COM MON CONCERN TO MEMBERS, C. EXTENDING ADVISORY SERVICES TO THE MEMBERS ON IM PORTS/EXPORT POLICY, D. LEGAL ASPECTS RELATING TO TAXES AND DUTIES, E. PREPARATION OF BACKGROUND NOTES AND REPORTS, 5 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 5 F. PUBLICATION OF THE QUARTERLY IRMA JOURNAL, G. ORGANIZING SEMINARS AND CONFERENCES ON TECHNICAL AND MANAGEMENT ASPECTS. FROM THE OBJECTIVES AND SERVICES RENDERED, THIS IS CLEAR THAT, THE OBJECTIVES CANNOT QUALIFY FOR GENERAL PUBLIC UTILITY AS MENTIONED IN SEC. 2(15) OF THE INCOME-TAX ACT, 1961. PERUSAL OF MEMORANDUM OF ASSOCIATION, STUDY OF THE DOCUMENTS, ACCOUNTS AND THE ABOVE DISCUSSION LEAD TO AN INESCAPABLE INFERENCE T HAT IN THIS INSTANT CASE, I) THE APPLICANT COMPANY HAS NOT PAID THE TAX WHICH WAS DUE. IN COURSE OF PROCEEDING I WAS DRIVEN TO THE CONCLUSION THAT SUCH NON-PAYMENT OF TAX IS IN VIOLATION OF THE PROVISIONS OF THE INCOME TAX ACT, 1961 AND IS NOT GENUINE ACTIVITY. II) THE ACTIVITIES OF THE COMPANY ARE RESTRICTED TO 75 MANUFACTURING & 26 ASSOCIATE MEMBERS. THEREFORE, THE APPLICATION OF THE APPLICANT FILED I N FORM L0A FOR REGISTRATION U/S. 12AA IS REJECTED. IT IS HELD THAT THE APPLICANT COM PANY I.E. INDIAN REFRACTORY MAKERS ASSOCIATION IS NOT REGISTERED AS A CHARITABLE INSTITUTION U/S. 12AA OF INCOME TAX ACT, 1961. 10. AS A CONSEQUENCE THE APPROVAL U/S 80 G WAS ALS O REJECTED. AGGRIEVED BY THE AFORESAID ORDERS THE ASSESSEE HAS PREFERRED THE PRE SENT APPEALS BEFORE THE TRIBUNAL. 11. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE OBJECTS OF IRMA(OLD) AS WELL AS THE ASSESS EE ARE IDENTICAL AND THERE IS NO REASON THAT THE ASSESSEE SHOULD BE DENIED GRANT OF REGISTR ATION U/S 12AA OF THE ACT. HIS NEXT SUBMISSION WAS THAT THE OBJECTS OF THE ASSESSEE AS LISTED BY CIT(EXEMPTION) IN THE IMPUGNED ORDER ARE EXTRACTED FROM THE WEBSITE OF TH E ASSESSEE. IT WAS SUBMITTED THAT CIT(E) HAD TO EXAMINE THE MEMORANDUM OF ASSOCIATION AND ARTICLES OF THE ASSESSMENT OF THE ASSESSEE AND NOT THE ONE WHICH IS FOUND IN T HE WEBSITE. IT WAS FURTHER SUBMITTED BY HIM THAT THE ALLEGATION OF CIT(A) IN THE IMPUGNE D ORDER REGARDING NON-PAYMENT OF TAX BY THE ASSESSEE IS WITHOUT ANY BASIS AS THE ASS ESSEE WAS ENTITLED TO EXEMPTION U/S 11 OF THE ACT. WITH REGARD TO THE CONCLUSION OF THE CI T(E) THE ACTIVITIES OF THE ASSESSEE 6 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 6 WAS RESTRICTED TO 75 MANUFACTURING AND 26 ASSOCIATE MEMBERS, THE LD. COUNSEL POINTED OUT THAT THE OBJECT OF THE ASSESSEE WAS OVERALL INF RASTRUCTURAL DEVELOPMENT OF THE INDIAN INDUSTRY AND INDUSTRIAL GROWTH. THE FACT THAT THE M EMBERSHIP OF IRMA HAD OF COURSE RESTRICTED TO 75 MANUFACTURING AND 26 ASSOCIATE MEM BERS THAT CANNOT MAKE THE OBJECTS OF THE ASSESSEE NOT FOR THE GENERAL PUBLIC UTILITY. IN THIS REGARD THE LD. COUNSEL PLACED RELIANCE ON THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF INDIA TRADE PROMOTION ORGANISATION VS. DGIT (E) (2015) 371 ITR 333 (DEL) WHEREIN IT WAS HELD THAT THE DOMINANT AND PRIME OBJECTIVE HAS TO BE SEE N AND IF THE DOMINANT AND PRIME OBJECTIVE OF THE INSTITUTION IS NOT PROFIT MAKING B UT ADVANCING OF GENERAL PUBLIC UTILITY THEN THE INSTITUTION HAS TO BE CONSIDERED AS ESTABL ISHED FOR CHARITABLE PURPOSE. RELIANCE WAS ALSO PLACED ON THE DECISION OF THE HONBLE KERA LA HIGH COURT IN THE CASE OF SREE ANJANEYA MEDICAL TRUST VS CIT(2016) 382 ITR 399 (KE R) WHEREIN IT WAS HELD THAT AT THE TIME OF GRANTING OF REGISTRATION U/S.12AA OF TH E ACT WHAT IS TO BE LOOKED INTO IS WHETHER THE TRUST IS A GENUINE ONE AND IT IS A SHAM INSTITUTION FLOATED ONLY TO AVAIL THE BENEFITS OF EXEMPTION UNDER THE ACT. THE LD. DR PL ACED STRONG RELIANCE ON THE ORDER OF CIT(EXEMPTIONS)KOLKATA. 12. WE HAVE GIVEN A VERY CAREFUL CONSIDERATION T O THE RIVAL SUBMISSIONS. AT THE OUTSET, IT WILL BE WORTHWHILE TO ANALYSE THE PARITY OF THE OBJECTS BETWEEN IRMA(OLD) AND THE ASSESSEE AND THE SAME IS AS FOLLOWS :- AOP COMPANY THE OBJECT OF THE ASSOCIATION ARE THE PROTECTION OF THE INTERESTS OF REFRACTORY INDUSTRY IN INDIA, THE DEVELOPMENT OF SUCH INDUSTRY, THE FURTHERANCE OF THE COMMON INTEREST OF THOSE ENGAGED THERE IN DISSEMINATION OF TECHNICAL INFORMATION AND MATTERS OF INTEREST TO THE MEMBERS AND HONORARY MEMBERS AS A WHOLE OR ANY OTHER GROUPS OF MEMBERS, THE PROMOTION AND FORMATION OF BRANCHES AND ANY OTHER (A) TO PROMOTE, SUPPORT, PROTECT, MAINTAIN, FURTHER, AID AND STIMULATE THE DEVELOPMENT OF THE REFRACTORY INDUSTRY IN INDIA. (B) TO ESTABLISH RESEARCH OR STUDY CENTRES, LABORATORIES AND INFRASTRUCTURE TO EVOLVE IMPROVED DESIGNS, PATTERNS, PRODUCT RANGE, RAW MATERIALS FOR GROWTH OF REFRACTORY INDUSTRIES OR UNDERTAKE ON BEHALF OF THE MEMBERS OF THE COMPANY SUCH ANALYSIS AS MAY BE REQUIRED BY THEM TO FACILITATE ON 7 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 7 ORGANIZATION WHETHER CORPORATE OR INCORPORATE FOR THE SAID PURPOSES OF ANY OF THEM, AND GENERALLY TO DO OR ALLOW ANY ACT, NATTER OR THING CONDUCTIVE TO ANY OF THE SAID SUBJECTS WHICH MAY CONVENIENTLY TO BE DONE IN CONNECTION OR CONJUNCTION THEREIN. THE ASSOCIATION SHALL FUNCTION WITHOUT ANY OBJECT OR PURPOSE OF PROFIT, AND NO MONEY OR SURPLUSES MAY BE DISTRIBUTED BY WAY OF DIVIDENDS TO THE MEMBERS, PROVIDED THAT THERE SHALL NO BAR TO PAYMENT OF ANY GENUINE EXPENSES BY WAY OF SALARY, REMUNERATION, FEES, ETC. TO ANY STIPENDIARIES, EMPLOYEES, LEGAL COUNSEL, AUDITOR'S, ADVISORS, ETC. IN FURTHERANCE OF THE ASSOCIATIONS OBJECTS. BEHALF OF THE MEMBERS OF THE COMPANY SUCH ANALYSIS AS MAY BE REQUIRED BY THEM TO FACILITATE THEM IN THEIR SMOOTH CONDUCT OF BUSINESS. (C) THE ASSOCIATION SHALL FUNCTION WITHOUT ANY OBJECT OR PURPOSE OF PROFIT, AND NO MONEY OR SURPLUSES MAY BE DISTRIBUTED BY WAY OF DIVIDENDS TO THE MEMBERS, PROVIDED THAT THERE SHALL NO BAR TO PAYMENT OF ANY GENUINE EXPENSES BY WAY OF SALARY, REMUNERATION, FEES, ETC. TO ANY STIPENDIARY, EMPLOYEES, LEGAL COUNSEL, AUDITORS, OBJECTS. ADVISORS, ETC. IN FURTHERANCE OF THE ASSOCIATION'S OBJECTS. (D) TO ESTABLISH, STRENGTHEN AND UP GRADATION OF HUMAN RESOURCE DEVELOPMENT FACILITIES INCLUDING SKILL UP GRADATION, TRAINING AND LIKE ACTIVITIES, COMMON RAW MATERIAL BANK INCLUDING RAW MATERIAL PROCUREMENT, COMMON TOOL ROOM INCLUDING COMMON TESTING FACILITY, MARKETING INFRASTRUCTURE AND PROVISION OF INFORMATION OF ALL KINDS TO THE INDUSTRIAL UNITS AND BUSINESS CENTRE AND ORGANIZE LEARNING PROGRAMME FOR THE BENEFIT OF INDUSTRY. 13. IT IS CLEAR FROM THE OBJECTS OF THE IRMA(OLD ) AND THE ASSESSEE THAT THEY ARE IDENTICAL. IT IS NOT DISPUTED THAT IRMA(OLD) WAS CO NSIDERED AS AN INSTITUTION EXISTING FOR CHARITABLE PURPOSE OF ADVANCEMENT OF ANY OTHER OBJE CT OF GENERAL PUBLIC UTILITY. IN SUCH SITUATION WE FAIL TO SEE ANY REASON AS TO WHY THE A SSESSEE CANNOT BE REGARDED AS EXISTING FOR CHARITABLE PURPOSE OF ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. THE LD. DR PLACED EMPHASIS ON THE PROFIT MOTIVE WHICH I S THE CONDITION INTRODUCED IN THE PROVISO TO SECTION 2(15) OF THE ACT. AS RIGHTLY CON TENDED BY THE LD. COUNSEL FOR THE ASSESSEE THE DOMINANT AND THE PRIME OBJECTIVE HAS T O BE SEEN. THE DOMINANT AND PRIME OBJECTIVE OF THE ASSESSEE WHICH CANNOT BE DENIED IS NOT PROFIT MAKING BUT FOR ADVANCEMENT OF OBJECT OF GENERAL PUBLIC UTILITY, VI Z., PROMOTION OF REFRACTORY INDUSTRY IN 8 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 8 INDIA. IN THE LIGHT OF THE EXISTENCE OF THIS PRIMAR Y CONDITION FOR GRANT OF REGISTRATION, WE FAIL TO SEE ANY REASON WHY THE ASSESSEE SHOULD BE D ENIED REGISTRATION U/S 12A OF THE ACT. THE FACT THAT THERE WILL BE ONLY 75 MANUFACTURING A ND 26 ASSOCIATE PERSONS AS MEMBERS OF THE ASSESSEE, CANNOT TAKE AWAY THE CHARACTER OF THE OBJECT OF THE ASSESSEE BEING ADVANCEMENT OF OBJECTS OF GENERAL PUBLIC UTILITY AS THE ASSESSEES OBJECTIVE WAS DEVELOPMENT OF REFRACTORY INDUSTRY AND OVER ALL INF RASTRUCTURAL DEVELOPMENT FACILITIES. IN THAT VIEW OF THE MATTER, WE HOLD THAT THE CIT(EXEMP TION), KOLKATA WAS NOT JUSTIFIED IN REFUSING TO GRANT REGISTRATION TO THE ASSESSEE U/S 12A OF THE ACT. WE HOLD THAT THE ASSESSEE IS ENTITLED TO GRANT OF REGISTRATION U/S 1 2A OF THE ACT. THE REGISTRATION IS DIRECTED TO BE ALLOWED. CONSEQUENTLY THE APPROVAL U /S 80G OF THE ACT IS ALSO DIRECTED TO BE ALLOWED. 14. IN THE RESULT BOTH THE APPEALS OF THE ASSES SEE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 19. 04.2017. SD/- SD/- [DR.ARJUN LAL SAINI] [ N.V.VASUDEVA N ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 19.04.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1. INDIAN REFRACTORY MAKERS ASSOCIATION, 5, LALA LA JPAT RAI SARANI, 4 TH FLOOR, KOLKATA- 700020. 2. C.I.T. (EXEMPTIONS), KOLKATA. 3. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSTT.REGISTRAR, ITAT, KOLKATA BENCHES 9 ITA NOS.2289&2290/KOL/2016 INDIAN REFRACTORIES MAKERS ASSOCIATION A.YR.2014-15 9