The Income Tax Officer, rejected the claim that the Kurie business was incidental to the main objects of charity and education and that the income proceeding from it was exempt under section 1 1 1 a of the Income Tax Act.
From the Judgment and Order dated 12 6 1974 of the Kerala High Court in.
The Appellate Assistant Commissioner reversed the order of the Income Tax Officer and held that education companystituted the main object of the appellant and, therefore, the income from the Kurie business, even though a profit making activity, being in aid of or incidental to the main object was entitled to exemption.
According to sub clause a of clause 3 of the Memorandum of Association, the main objects for which the appellant was formed are to give charity and to promote education.
At the instance of the Commissioner of Income Tax, the Tribunal referred the following question to the High Court of Kerala for its opinion Whether on the facts and in the circumstances of the case, the assessee is entitled to exemption under section 11 of the Income Tax Act, 1961 for the assessment year 1969 70?
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Income Tax Reference No.
82 of 1975.
S. Chitale, V. J. Francis and Mukul Mudgal for the Appellant.
The appellant carries on the business of companyducting Kuries, and in respect of the income during the calendar year 1968 from that business, it was assessed to tax for the assessment year 1969 70.
a The main objects to be pursued by the Company on its incorporation are To give charity.
The Income Tax Appellate Tribunal, on further appeal, upheld the view taken by the Appellate Assistant Commissioner.
77/72.
B. Ahuja and A. Subhashini for the Respondent.
The relevant provisions of its Memorandum of Association are 3.
1040 To promote education.
The appellant is an association companystituted under a licence granted under section 25 of the Companies Act, 1956 on January 5, 1967.
The Judgment of the Court was delivered by PATHAK, J. This appeal, by certificate under section 261 of the Income Tax Act, 1961, is directed against the judgment of the High Court of Kerala disposing of a reference made to it by the Income Tax Appellate Tribunal under section 256 1 of the Act.
