Charitable exemption denied for industry coordination body; member contributions deductible but reimbursements taxable as revenue receipts. The coordination body does not qualify as a charitable organisation and therefore is not entitled to exemption under charitable-income provisions; it is to be assessed as a commercial organisation. Contributions by member companies to the body are deductible as necessary business expenditure, and payments or reimbursements from the body to members are assessable in the hands of the member companies as revenue receipts.
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Provisions expressly mentioned in the judgment/order text.
Charitable exemption denied for industry coordination body; member contributions deductible but reimbursements taxable as revenue receipts.
The coordination body does not qualify as a charitable organisation and therefore is not entitled to exemption under charitable-income provisions; it is to be assessed as a commercial organisation. Contributions by member companies to the body are deductible as necessary business expenditure, and payments or reimbursements from the body to members are assessable in the hands of the member companies as revenue receipts.
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