COMMISSIONER OF INCOME TAX MADRAS COMMISSIONER OF INCOME TAX MADRAS COMMISSIONER OF INCOME TAX MADRAS COMMISSIONER OF INCOME TAX Vs. ANDHRA CHAMBER OF COMMERCE:SOUTH INDIAN CHAMBER OF COMMERCE:SOUTH INDIA FILM CHAMBER OF COMMERCE:MADRAS STOCK EXCHANGE LIMITED

JUDGEMENT

(1.) -This appeal by special leave is covered by the judgment of this Court in Commissioner of Income-tax v. Andhra Chamber of Commerce (55 ITR 722) and in Addl. Commissioner of Income-tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association (121 ITR 1). It is clear from the judgment in Commissioner of Income-tax v. Andhra Chamber of Commerce (supra) that the objects of the Andhra Chamber of Commerce fell within the last head of charitable purpose denoted by the words "advancement of any other object of general public utility" and were, therefore, charitable within the meaning of Sec. 2 (15) of the Income Tax Act 1961 unless it could be shown that they involved the carrying on of any activity for profit. The words "not involving carrying on of any activity for profit" came up for consideration before this Court in Addl. Commissioner of Income-tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association (supra) and there it was held by the majority Judges that it was only where the predominant object and purpose of the activity carried on was to earn profit, that the object could be said to involve the carrying on of an activity for profit but if the predominant object was to subserve the charitable purpose then the inhibition of these last 9 words would not be attracted. It is clear from the facts set out in the judgment of the High Court that profit making was not the predominant object of the activity carried on by the Andhra Chamber of Commerce but the predominant object was to promote trade and commerce which was an object of general public utility. The High Court was, therefore, right in taking the view that the objects of the Andhra Chamber of Commerce fell within the last category of charitable purpose given in Sec. 2 (15) of the Act and its income was exempt from tax under Section 11 (1) of the Act.

(2.) The appeal is accordingly dismissed with no order as to costs.

(3.) S.L.P. (Civil) No. 4165/79,S.L.P. (Civil) Nos. 4166-71/79, S.L.P. (Civil) Nos. 4172-75/79 and S.L.P. (Civil) Nos. 3779/79 are also dismissed.