COMMISSIONER OF INCOME TAX Vs. INDIAN CHAMBER OF COMMERCE
LAWS(CAL)-1970-5-2
HIGH COURT OF CALCUTTA
Decided on May 29,1970

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
INDIAN CHAMBER OF COMMERCE Respondents

JUDGEMENT

P.B.Mukharji, C.J. - (1.) In this income-tax reference under Section 256(1) of the Income-tax Act, 1961, the following question of law has been raised for an answer by this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the activities carried on by the assessee from which it derived, (a) arbitration fees, (b) fees for certificate of origin, and (c) its share of profit from Messrs. Calcutta Licensed Measurers, were not activities carried on for profit within the meaning of Section 2(15) of the Income-tax Act, 1961, and, accordingly, the income derived from such activities was exempt from tax under Section 11 of the Income-tax Act, 1961 ?"
(2.) The facts raising this controversy are as follows: The assessee is the Indian Chamber of Commerce. The assessment year is 1964-65 and the corresponding accounting year is the year 1963. The assessee-company was registered under Section 26 of the Indian Companies Act, 1913, and was permitted to omit the word "limited" from its name.
(3.) The income on which the tax is questioned arises in this case from three different sources. The first is the arbitration fees. The second is the fees for certificate of origin. The third source arises from the share of profit of the assessee which arises in the following way. Formerly, the Chamber had a measuring department where it used to undertake all types of weighment and measurements for the benefit of the traders in general for which it charged fees. The Bengal Chamber of Commerce, a sister concern, had also a similar department. By an agreement dated the 20th March, 1962, the two chambers of commerce agreed to carry on the business formerly carried on by the two chambers in their measuring departments in partnership under the name and style of Messrs. Calcutta Licensed Measurers on and from the 1st April, 1962.;


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