TMI Blog1980 (1) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... rred runs as follows: " Whether, on the facts and in the circumstances of the case, it has been rightly held that the assessee was entitled to exemption under section 11 of the Income-tax Act, 1961 ? " In T.C. No. 282 of 1975 the question referred runs as follows: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to exemption under section 11 of the Income-tax Act, 1961 ? " The assessee was incorporated under the Indian Companies Act, 1913, and was exempted from adding the suffix " Limited " under s. 26 of the said Act, The association was started for protecting, safeguarding, guiding and furthering the interest and welfare of merchants dealing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the department's contention that the reopening had been validly done particularly in the context of information which emanated from the internal auditor's report. It further held that the assessee's claim for exemption under s. 11 was well founded. In the opinion of the Tribunal, the dominant object of the assessee was intended to benefit the cross-section of the public, as well as the merchants engaged in the jewellery and diamond trade and that if any charges were received for services, it was only incidental and not with a view to make any profit. The result was that the assessee's claim for exemption succeeded. The assessee did not file any reference application against the finding of the Tribunal relating to the applicability of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst malpractices alleged in the weighment of such precious items like gold, jewellery, etc., if the weighment is done elsewhere. Further, if any charges are charged, it is only incidental and not to make any profit." We have already examined the claim for exemption of the Automobile Association of Southern India under s. 11 in T.C. No. 352 of 1974 [Addl. CIT v. Automobile Association of Southern India [1981] 127 ITR 730 (Mad)] in the light of the judgment of the Supreme Court in Tax Reference No. IA of 1973 and 10 to 14 of 1975 dated November 19, 1979, in the case of Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1. The principles laid down in the said judgment have all been set out in our judgment pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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