TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether a State Bar Council is a body intended to advance an object of general public utility within the meaning of section 2(15) of the Income-tax Act, 1961; (ii) Whether interest income from securities held by the Bar Council is exempt under section 11 of the Income-tax Act, 1961.
Issue (i): Whether a State Bar Council is a body intended to advance an object of general public utility within the meaning of section 2(15) of the Income-tax Act, 1961.
Analysis: The dominant-purpose inquiry was applied to the statutory functions of the Bar Council under the Advocates Act, 1961. The regulatory duties of enrolment, maintenance of the roll, disciplinary control, law reform, legal education, and legal aid to the poor showed that the institution was constituted primarily to serve the litigating public, promote legal literacy, and further the administration of justice. Any advantage to the members of the Bar was only incidental.
Conclusion: Yes. A State Bar Council is a body intended to advance an object of general public utility within section 2(15) of the Income-tax Act, 1961, and the finding is in favour of the assessee.
Issue (ii): Whether interest income from securities held by the Bar Council is exempt under section 11 of the Income-tax Act, 1961.
Analysis: Once the Bar Council was held to be an established for an object of general public utility, the income from securities held by it fell within the exemption available to property held for charitable purposes. The nature of the Council's functions and the character of the funds did not take the interest income outside the exemption merely because the Council also served its member-advocates incidentally.
Conclusion: Yes. The interest income from securities was exempt under section 11 of the Income-tax Act, 1961, and the answer is in favour of the assessee.
Final Conclusion: The referred questions were answered by holding that the Bar Council's dominant purpose was charitable in the statutory sense and that the interest income from securities enjoyed exemption accordingly.
Ratio Decidendi: In determining charitable character under section 2(15) of the Income-tax Act, 1961, the institution's dominant statutory purpose controls, and where the principal objective is advancement of general public utility with only incidental benefit to members, the income from property held for such purpose is exempt under section 11.
TaxTMI 
