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2015 (11) TMI 396 - HC - Income TaxEntitlement to exemption under section 11(2) and section 11(1)(a) - whether the assessee-respondent is a charitable institution as contemplated under section 2(15)? - assessee-company is a stock exchange registered as public limited company under the Companies Act, 1956, and is alleged to be a charitable institution under section 12A - Held that:- We have gone through the objects of the Jaipur Stock Exchange Ltd. in the memorandum of association. The Jaipur Stock Exchange Ltd. is a company, registered by the Income-tax Department as charitable trust under section 12A of the Income-tax Act. The object of the stock exchange is not only to further the interests both of the brokers and dealers but also the public interested in securities, to assist, regulate and control the trade or business in securities, to maintain high standards of commercial honour and integrity, to promote and inculcate honourable practices, and just and equitable principles of trade and business, to discourage and to suppress malpractices, to settle disputes, and to decide all questions of usage, custom or courtesy in the conduct of trade and business. The memorandum of association does not permit the profits to be distributed between the members. The profits are provided to be utilised for services of the public utility, would thus clearly fall and will qualify for exemption within the meaning of "charitable purpose", as defined in section 2(15) of the Act. In our view, the question is covered by the judgment of the hon'ble Supreme Court in Delhi Stock Exchange Association Ltd. v. CIT (1997 (3) TMI 11 - SUPREME Court), and CIT v. Andhra Chamber of Commerce (1964 (10) TMI 19 - SUPREME Court ), CIT v. Bar Council of Maharashtra (1981 (4) TMI 8 - SUPREME Court ) - Decided in favour of assessee.
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