Society formed with an object to provide accommodation and facilities for marriages and other auspicious functions to members of a particular community - cannot be regarded as society formed with charitable purpose

The assessee a society, registered under the Tamil Nadu Societies Registration Act, 1975, filed an

application for registration u/s. 12AA. The DIT(Exemptions) observed that the assessee-society was

formed to benefit only a particular community and did not fall within the purview of section 2(15).

The Tribunal confirmed the decision of the DIT(E).

On appeal by the assessee, the High Court observed that the Scheme Award which contained the

objects of the assessee society was pending before the District Court and hence it could not claim to

be a society formed with charitable purpose. The contention of the assessee that the Tribunal had

erroneously reached the conclusion that the objects are targeted towards a particular choultry alone

was not accepted by the High Court, since as per the Scheme Award, it was clear that choultry and

the assessee-society i.e. Gowri Ashram are one and the same. Accordingly, the High Court confirmed

the Order of the Tribunal for not granting registration u/s. 12AA and dismissed the assessee’s

appeal, however, the High Court gave an opportunity to the assessee-society to renew its

application once its objects are approved by the District Court.

Gowri Ashram v. DIT (Exemptions) (2013) 356 ITR 328 / 217 Taxman 97 (Mad.) (HC)