TRUCK POPERATORS UNION Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a referee under Section 256(1) of the Income Tax Act, 1961. It relates to the assessment year 1963-64, the relevant previous vear being the calendar year which ended on 31-10-1962.

(2.) The applicant assessee, M/s. Truck Operators Union, is registered as a trade Union under the Indian Trade Union Act, 1926. It is a trade Union of employers being goods transport operators either in the capacity of owners or partners, directors and managing directors of firms or companies carrying on transport business. The objects of the Union are set out in clause 2 of its constitution and are as follows:

(3.) The assessee preferred an appeal to the Appellate Assistant Commissioner but at the stage of the appeal its claim was that its objections were entirely charitable and, therefore, it was entitled to exemption under Section II of the Act. This claim was based on the decision of the Supreme Court in the case of Commissioner of Income Tax v. Andhra Chamber of Commerce, 1965-55 I.T.R. 722(1). This claim was accepted by the Appellate Assistant Commissioner who held' that the assessee was entitled to exemption as a charitable trust and allowed the assessee's appeal.