1987 (7) TMI 62

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....t of objects or advancement of public utility not involving the carrying on of any activity for profit ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that for the assessment year under consideration, the assessee was entitled to the benefit of exemption under section 11(1) read with section 2(15) of the Income-tax Act, 1961 ? " The assessee, A. P. Bankers and Pawn Brokers Association, Secunderabad, was registered as a company under the Companies Act, 1956. It was accorded a licence under section 25 of the said Act, read with the first proviso to section 3 of the A.P. Non-Trading Companies Act (No. 2) of 1962. The licence granted by the Andhra Pradesh Go....

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....stributed amongst the members of the association, but shall be given or transferred to such other association having objects similar to the objects of this association. The assessee filed a voluntary return disclosing " nil " income for the assessment year 1976-77. For subsequent years, it showed some nominal income. The Income-tax Officer rejected the assessee's claim for exemption purporting to follow the decision of the Supreme Court in Indian Chamber of Commerce v. CIT [1975] 101 ITR 796. On appeal, however, the Appellate Assistant Commissioner took a contrary view and held, on an examination of the purposes and objects of the assessee association and other circumstances, that the income of the assessee is exempt under section 2(15) ....