DHARMAPOSHANAM COMPANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE income-tax referred cases raise the same question for decision. The assessee is the same company. Income-tax Referred Cases Nos. 52, 53, 54 and 51 refer respectively to the years of assessment 1965-66, 1962-63, 1963-64 and 1964-65. The claim put forward by the assessee before the Tribunal that the income from the kuri (chit funds) and interest income earned by lending money ,are not taxable under the Income-tax Act, 1961 (for short, " the Act "), in view of Section 11 of the Act exempting income derived from property held on trust for a charitable purpose, has been negatived by the Tribunal and these references are at the instance of the assessee and the question referred for our opinion is :

(2.) THE assessee was following the calendar year as its accounting period and on June 7, 1965, the company amended its memorandum of association and articles of association. Because of the amendments the Tribunal held that the income from the same sources (chit funds and interest from lending money), which was held to be taxable for the years 1962-63 to 1965-66, was not taxable for the years 1966-67, 1967-68 and 1968-69. At the instance of the department, the following question has been referred in relation to the years 1966-67 and 1967-68 for our opinion in Income-tax Referred Cases Nos. 55 and 56 of 1972 :

(3.) THE relevant " objects of the memorandum of association " of the assessee before its amendment on June 7, 1965, and which applied for the purpose of assessment to tax for the years 1962-63 to 1965-66 are seen from the following clauses in the memorandum of the assessee-company :