Law:

Section:

JUDGMENT Krishna Iyer, J.-These four appeals raise but one question, turning on the meaning of "charitable purpose, as defined in section 2(15) of the Income-tax Act, 1961 (Act No. 43 of 1961) (for short, "the Act"). They may be disposed of by one common judgment, although the two High Courts (Calcutta and Kerala) from where the appeals have come have taken contrary views on the single point in issue. What are the bounds set for earning exemption by a combined application of section 11(1) read with section 2(15) of the Act? What is the parameter of the legal concept of charitable purpose? Are the triune activities, which have yielded income and have been assessed to tax, eligible for exemption as falling within the scope of section 2(15) as it now stands? These points of law, in the conspectus of facts presented in the case, have been argued in the light of conflicting decisions of the High Courts and illumined in part by a very recent pronouncement of this court in Sole Trustee, Loka Shikshana Trust v. Commissioner of Income-tax [1975] 101 ITR 234 (SC). The assessees are the Indian Chamber of Commerce and the Cochin Chamber of Commerce. Their memoranda and articles of association are substantially similar and so the facts in the first case alone need be stated and the question of law discussed with reference to that case only. Hardly any distinction on facts or law which desiderate a separate consideration exists. The Indian Chamber of Commerce is a company registered under section 26 of the Indian Companies Act, 1913. Its memorandum and articles of association spell out the broad objects and there is no doubt that they fall within the sweep of the expression "the advancement of any.................... object of general public utility" as set down in section 2(15) of the Act. Briefly put, they are primarily promotional and protective of Indian trade interests and other allied service operations. A general concluding clause authorizes it "to do all other things as may be conducive to the development of trade, commerce and industries or incidental to attainment of the above objects or any of them". It is clear from clauses 4 and 8 of the memorandum of…

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