TaxTMI 
TaxTMI 
1982 (2) TMI 88
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..... 1961. The ITO held that interest income was not covered by the principle by the assessee from its own members. The alternative submission of the assessee was that its entire income was exempt under s. 11 as it has spent more than 75 per cent of its income on charitable purposes. The ITO observed that the assessee had, in fact, not spent 75 per cent of its income though 75 per cent of its total receipts had been spent. The ITO found that as per profit and loss account, the surplus of Rs. 3,246 was the only income available for the purposes of application for charitable purposes and that out of this surplus, no amount has been spent. According he also did not accept the alternative submission put forward on behalf of the assessee and he bro....
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....i Ashok Sharma, C.A. for the assessee placed strong reliance on the order of the AAC. He also referred to the Memorandum and Articles of Association of the assessee and pointed out that the dominant purpose of the assessee was charitable. He also referred to cl. 4 of the Memorandum and Articles of Association which provided that the income and property of the association whencesoever derived shall be applied solely towards the promotion of the objects of the Association and that no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus or otherwise howsoever by way of profit by the members of the Association. He also submitted that 75 percent of the income was to be calculated on the basis of the total....