Law:

Section:

Section 11 of the Income-tax Act, 1961 (Corresponding to section 4(3)(i) of the Indian Income-tax Act, 1922) - Religious or charitable trust - Exemption of income from property held under - Assessment year 1960-61 - Whether general public utitlity does not mean mankind at large but also includes a section of community sought to be benefited if it is sufficiently defined and identifiable by some common quality of a public or impersonal nature - Held, yes - ITO rejected assessee-company's claim for exemption of its rental income from a building owned by it - As per its memorandum of association neither income nor property of assessee could be utitlised by members and objects for which assessee had been incorporated were for general public utility, that is, of textile manufactures and particularly those who were members of association - Further section of community was sufficiently defined and identifiable as textile manufactures of province of Punjab - Whether in view of aforesaid legal position, assessee was entitled to benefit of exemption provided in section 4(3)(i) of 1922 Act - Held, yes Words & Phrases 'Charitable purpose' and 'objects of general public utitlity' occurring in section 4(3)(i) of Indian Income-tax Act, 1922. FACTS The assessee-company owned a building from which it derived rental income. For the assessment year 1960-61, it claimed exemption from tax in respect of the rental income under section 4(3)(i), even though it never objected to its assessment in earlier years. The ITO however, rejected the claim and included the rental income in its total income. On second appeal, the Tribunal accepted the assessee's claim on the basis of the of the Supreme Court in CIT v. Andhra Chambers of Commerce [1965] 55 ITR 722 (SC). On reference: HELD According to the clauses of the memorandum of association of the assessee-company, neither the income nor the property of the assessee could be utilised by the members and the objects for which the assessee had been incorporated were for the general public utility, that is, of the textile manufacturers and particularly those who were members of the association. According to the observations made by the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492