Ramachandran Nair, J.

This is an Appeal filed by the Revenue challenging the order of the Income Tax Appellate Tribunal directing the Commissioner of Income Tax to grant registration to the respondent Company as a Charitable Institution under Section 12A of the Income Tax Act (hereinafter referred to as the Act for short).

2. We have heard learned Senior Counsel appearing for the appellant Revenue and Shri.A.Kumar learned counsel appearing for the respondent. We have also gone through the orders of the Commissioner issued on the application filed by the assessee under Section 12AA of the Act and the orders of the Tribunal allowing the claim and have also considered the argument note submitted by the assessee's counsel.

3. The assessee is a Company registered under Section 25 of the Companies Act. According to the assessee, it is formed for the purpose of advancement of the object of general public utility, which is one of the charitable purposes covered by Section 2(15) of the Act and so much so it is entitled for registration as "charitable institution" under Section 12A of the Act. In this regard, an application under Section 12AA was submitted before the Commissioner of Income Tax on 27/03/2006 which is for the assessment year 2006-07. However while considering the application, the Commissioner found that the assessee is not entitled to registration under the head "charitable institution" for the following reasons:-

(1) The benefit of the foundation, according to the main object clause, will go to the members of the foundation.

(2) The activities covered by the object clause are essentially business activities which are not intended to serve any benefit for the public generally and so much so it is not formed for advancement of object of any general public utility.

(3) Since the assessee is formed for starting telecasting and broad casting of television and radio programmes respectively, benefits if any of the same are not confined to residents of India and so much so, the activities outside the territories of the country will disentitle the assessee from getting the benefit of exemption because under Section 11 of the Act, exemption is confined to charitable activities carried on in India.

4. On the first objection, the assessee contended before the Commissioner of Income Tax that it made an amendment in the Memorandum and Articles of Association deleting the words "for benefit of the members", and so much so, this clause in the main object should not be a ground for denying the benefit of registration as charitable institution. However, before the Commissioner the assessee had not produced any document or evidence in support of the amendment made to the object clause as stated above. The assessee further contended before the Commissioner that it is specifically provided in the Memorandum and Articles of Association of the Company that it will not declare any dividend to it's members, which is a statutory requirement for getting registration under Section 25 of the Companies Act, which the assessee has. So far as the extra territorial operation of the assessee is concerned, the assessee explained before the Commissioner that it has not started operation and it will confine it's operations of telecasting and broadcasting of television and radio programmes only within India. The assessee, however, did not explain as to what is the scope of the business it proposes to take up under the main sub clause, namely "to act as an agent, broker, liasioner, introducer etc."

5. So far as the charitable object of the Company by way of advancement of object of general public utility is concerned, the assessee contended before the Commissioner that the television and radio programmes like, documentary, telefilm, serial etc. are proposed to be made and telecasting and broadcasting of the same are intended for promoting social and spiritual upliftment of general public. Even though the Commissioner raised an objection that