1972 (2) TMI 6

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..... f the Commissioner of Income-tax and the Income-tax Appellate Tribunal, Cochin Bench, has referred the following question to this court : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the income of the assessee is exempt from tax under section 11 of the Income-tax Act, 1961? " The assessee is the Cochin Chamber of Commer .....

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..... eipts from the issue of certificates for survey and weighment as income for the purpose of assessment. The assessee contended that the income in question was that derived from the property held under trust wholly for charitable purposes and therefore is exempt under section 11(1)(a) of the Income-tax Act, 1961. " Charitable purpose " is defined in section 2(15) of that Act in these terms : " 2. .....

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..... e-tax Indian Chamber of Commerce has been taken by the Calcutta High Court and the reasoning is thus stated in the judgment : " An appropriate interpretation of section 2(15) of the Income-tax Act, 1961, is to consider the expression 'not involving the carrying on of any activity for profit' as qualifying the expression 'the advancement of any other object of general public utility' and not the o .....

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..... ity for profit in order that the object may be outside the purview of the definition. This, we think, will be better understood if the section is read in a positive manner as postulating objects which are outside the purview of the definition. The section has to be read in this manner then : " Object of general public utility involving the carrying on of any activity for profit ; " Such objects .....

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..... rs engaged in trade or commerce and others in the same field and this is an object of general public utility. The income has to be exempted under section 11(1)(a) of the Income-tax Act, 1961. We, therefore, answer the question referred to us in the affirmative that is, in favour of the assessee and against the department. There will be no order as to costs. A copy of this judgment under the seal .....

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