O R D E R

Per Prakash Chand Yadav, JM :

The present appeal of the assessee is arising from the order of the learned CIT(Exemption), Bangalore dated 27^th March, 2024 having DIN & Order No.ITBA/EXM/F/EXN45/2023-24/

1063440703(1).

2. The assessee has raised eleven grounds of appeal. However, the solitary issue involved in the present appeal is whether the action of the CIT(E) in denying registration u/s.12A of the Income-tax Act, 1961 to the assessee is tenable or not.

3. The facts leading to the filing of the present appeal are that the assessee is a charitable trust registered under the Karnataka Societies Act on 13th August, 1956. The assessee has obtained provisional registration u/s.12AB of the Act on 6th January, 2022, which was valid for Asst. Years 2022-2023 to 2024-2025. Thereafter the assessee on 30^th September, 2023 filed an application in Form No.10AB seeking regularization of the provisional registration. On receipt of the application from the assessee, the CIT(E) written letters to the Jurisdictional Assessing Officer (JAO) and sought his comments on the details / documents filed by the assessee. The ld.CIT(E) observed that the JAO has not recommended for the regularization of registration of the assessee-society. Thereafter the ld.CIT(E) has gone through the balance sheet and income and expenditure account of the present assessee and concluded that the assessee is meant only for the benefit of Canara Bank Employees. The ld.CIT(E) was of the view that the benefits are exclusively meant for the members of the assessee and not for general public at large and hence the assessee cannot be said to be a society engaged in charitable activities. The ld.CIT(E) referred to the proviso of section 2(15) of the Act and held that the assessee is not engaged in advancement of the object of general public utility.

4. Aggrieved with the order of the ld.CIT(E), the assessee filed the present appeal and argued that the ld.CIT(E) has erred in not regularizing the assessee for certificate u/s.12AB of the Act. The Counsel for the assessee has also filed written submissions before the Bench and has relied upon various judgments.

5. The learned Departmental Representative appearing for the Revenue relied upon the orders of the authorities below and argued that the ld.CIT(E) is correct in denying the certificate u/s.12AB of the Act to the assessee.

6. After considering the rival submissions, we observe that the assessee-society was created on 13th August, 1956. The Memorandum of Association of the assessee-society is annexed in paper book pages 19 to 28. The main objects of the assessee-society are as under: -

“a) Economic, Social and Moral advancement of the members, and to encourage and help them to develop habits of thrift, self help and better living.

b) to provide recreation and arrange outing and run holiday and convalescent homes for members, c) to give financial aid or loans with or without interest to members in case of sickness, disability, or distress amongst the members or their families or for education of their children, etc., and to adopt any measures or proposals or take such steps as may be determined from time to time for the welfare of the members of the Fund, whether singly or in collaboration with other institutions or associations.”

7. The dissolution clause of the present assessee is there at page no.27 para 60, which reads as under:-

“(i) The Association may. be dissolved only after a resolution of the General Body specially called for the purpose is passed with a majority of 51 per cent of the total number of members of the Association and 4/5th the number of members present either in person or by proxy at the meeting.

ii) In the event of the Association being dissolved for any cause whatever, if there shall remain after the satisfaction of all debts and liabilities, any property or ... but shall be given or transferred to some other Association of institution like Schools, hospitals, etc., carrying some welfare activities to