1980 (1) TMI 206

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....: S. V. Subramanitan, Subbaraya Aiyar, Padmanabhan and Ramamani JUDGMENT Sethuraman, J. These are references of the following question arising our of the order of the Tribunal for the asst. yr. 1967-68 to 1969-70 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the object of the assessee constituted "Charitable purpose" ....

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....is to be paid directly or indirectly by way of dividend or bonus to the members. The Association derived income from securities, dividends etc. and also from arbitration fees and fees for issuing certificates. The question arose in the course of these assessments whether the assessee was exempt under s. 11 read with s. 2(15) of the Act. The ITO assessed the income without any discussion of the all....

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....blic utility within the meaning of s. 2(15) of the Act. The decision of the Calcutta High Court, which was followed by the AAC, and the decision of the Kerala High Court, which was followed by the Tribunal, were all considered by the Supreme Court in the Indian Chamber of Commerce vs. CIT, Bengal. The Kerala decision was reversed and the Calcutta decision was affirmed. Subsequently the Supreme Cou....

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....ld be whether the Association is carrying on any activity for profit, so as to fall with the word "exclusion" in s. 2(15). There is nothing to show that the assessee, in giving assistance by way of arbitration or issuing certificates of origin in respect of goods, was carrying on any activity for profit. The dominant purpose of the assessee Chamber is only to pursue an object of general public uti....