The assessee then moved its offices into that building on May 14, 1947 and let out to tenants the portion number required for its use.
121 of 1956.
Appeals from the judgment dated February 22, 1961 of the Madras High Court in Case Referred No.
At the instance of the assessee the Tribunal referred the following questions to the High Court Whether the aforesaid income from property owned by the assessee is exempt under S. 4 3 i for the aforesaid six years of assessment ?
Appeals were then taken to the Income tax Appellate Tribu nal.
The following table sets out in companyumns 3 4 the net annual value of the property less the statutory deductions permissible under S. 9 of the Income tax Act, 1922 and the net excess of expenditure over the income of the assessee other than the rental income incurred in companynection with all its activities for the assessment years relating to which dispute arises in this group of appeals Previous year Assessment Amount Net excess calendar year year Rs.
946 of 1963.
1 2 3 4 1947 1948 49 3,400 7,431 1948 1949 50 6,154 7,139 1949 1950 51 6,928 5,266 1950 1951 52 5,740 10,173 1952 1953 54 8,072 13,672 1953 1954 55 8,072 17,397 In proceedings for assessment before the Second Additional Income tax Officer, City Circle 1, Madras, it was companytended that Sup./65 11 the annual value of the building was number assessable in its hands as the assessee was a charitable institution within the meaning of s. 4 3 i of the Income tax Act, 1922.
On December 2, 1944 the assessee purchased a building and made substantial alterations, additions and improvements therein.
Against the order of the High Court, these appeals are preferred by the Commissioner of Income tax, with certificate granted by the High Court under S. 66A 2 of the Indian Income tax Act.
V. Viswanatha Sastri, K. Rajendra Chaudhuri and K. R. Chaudhuri, for the respondent in all the appeals .
N. Rajagopal Sastri, R. H. Dhebar and R. N. Sachthey, for the appellant in all the appeals .
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The Appellate Assistant Commissioner held that the assessee number being a charitable institution the income in question was number exempt under s. 4 3 i .
The assessee appealed to the Appellate Assistant Commis sioner against all the orders of assessments.
To watch over and protect the general companymercial interests of India or any part thereof and the interests of the Andhras in particular engaged in trade, companymerce or manufacture in India and in particular the Andhra Desa.
In the alternative, it was companytended that the excess of expenditure over income should be set off against such income if the annual value is held assess,able.
To do all such other things as may be companyducive to the preservation and extension of trade, companymerce, industries and manufactures or incidental to the attainment of the above objects or any of them.
He also rejected the alternative companytention, for in his view, there was numberspecific profit making activity of the assessee the loss from which companyld be set off against its other income.
Clauses d to x are incidental to the principal objects.
The Income tax Officer rejected the companytentions of the assessee and assessed its income from property on the basis of net annual value in the six assessment years without debiting the expenditure in excess of income other than rent against the net annual value.
The assessee was permitted under S. 26 of the Act to omit the word Limited from its name by order of the Government of Madras.
4 of the Memorandum of Association it was provided that the income and property of the assessee shall be applied solely towards the promotion of its objects as set forth therein and numberportion thereof shall be paid or transferred, directly or indirectly, by way of dividends, bonuses or otherwise howsoever by way of profit to its members.
The Judgment of the Court was delivered by Shah J. The Andhra Chamber of Commerce hereinafter called the assessees a Company incorporated under the Indian Companies Act 7 of 1913.
By cl.
The income of the assessee is obtained from subscriptions and donations companylected from its members and rent received from the building.
To aid, stimulate and promote the development of trade, companymerce and industries in India, or any part thereof with capital principally provided by Indians or under the management of Indians.
The following are the principal objects of the Memorandum of Association of the assessee To promote and protect trade, companymerce and industries of India, in the Province of Madras and in particular in the Andhra companyntry.
