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Section 2(15) of the income-tax act, 1961-Charitable purpose-Whether police personnel would constitute 'A section of public', so that society constituted for their benefit could be treated as for charitable purpose under section 2(15)-Held, yes Facts The assessee-society was formed for the benefit of police personnel and their families. It had the objects of undertaking social and economic welfare measures for the benefit of police personnel and their families. The assessee claimed exemption under section 11 qua interest income on deposits of its fund in bank. On appeal, the Tribunal upheld the assessee's claim. On reference: Held A group of persons may be numerous, but, if the nexus between them is their personal relationship to a single propositus or to several propositus, they are neither the community nor a section of the community for charitable purposes. However, the above principle is not applicable in the case of public employment, i.e., employment of Government, since in that case it is the public that it is the employer; qui facit per alium facit per se and so, to the services rendered by the employees in the public employment, the beneficiaries are the public. Section 10(23C) further supports this view. Accordingly, the assessee, which was charitable in its objects, as was quite apparent from the very objectives laid down under the rules framed thereunder, was a body that would constitute 'a section of the public' and so, the fund founded for the benefit of such section should be treated as charitable in its object, attracting thereby the exemption from theexigibility to tax. Case review Oppenheim v. Tobacco Securities Trust Co. Ltd. [1951] 1 All ER 31 followed. Cases referred to Oppenheim v. Tobacco Securities Trust Co. Ltd. [1951] 1 All ER 31, Ahmedabad Rana Caste Association v. CIT [1971]82 ITR 704 (SC), IRC v. City of Police Glasglow Athletic Association [1953] AC 380 and CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC). M.S.N. Murthy for the Applicant. Y.V. Anjaneyulu for the Respondent. JUDGMENT REDDY, J.-The question for decision in this reference at the instance of the revenue, is: "Whether, on the facts and in the circumstances of…

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