2001 (9) TMI 63

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....s delivered by P. K. BALASUBRAMANYAN J. -At the instance of the Revenue, the following question of law has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding: (a) the assessee is a charitable association falling within the definition of section 2(15) of the Income-tax Act, 1961? (b) the assessee is ....

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....21 ITR 1 (SC). The assessing authority did not allow the claim. The Commissioner of Income-tax (Appeals) also over ruled the plea of the assessee in that regard. The essential finding of the appellate authority was that the assessee's activities would not fall under section 2(15) of the Act, as the assessee was carrying on an activity for profit. The assessee filed an appeal before the Income-tax ....

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....ed the main objects of the assessee association. A reading of clauses (a) to (j) extracted in the order of the Tribunal does not show that the association was formed with any charitable or religious purpose. Clause 7 of the articles of association extracted by the Tribunal in its order indicates that the association was formed not with a view to make profit. It may be noted that clause (e) of the ....

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....ancement of any other object of general public utility as contemplated by section 2(15) of the Income-tax Act. Merely because clause 7 provides that the association shall not function for profit and the balance income shall be expended solely for the objects set forth in the memorandum of association that cannot make the income earned by the association exempt under section 11 of the Income-tax Ac....