Suhas Chandba Sen, J. - (1.) The Tribunal has referred the following question of law under Section 256(1) of the Income-tax Act, 1961, to this court : "Whether, in view of the fact that the asses see-association is a registered trade union and in view of the provisions in Rule 3 of the Rules and Regulations of the Association that the object of the association is to regulate relations between members and members and between members and their employees, the Tribunal was right in upholding the denial of the exemption claimed under Section 10(24) of the Income-tax Act, 1961 ?"
(2.) In this proceeding, the assessment years involved are 1977-78, 1978-79 and 1979-80 and 1974-75 for which the relevant periods of account are calender years 1976, 1977, 1978 and 1973 respectively. The assessee is an association registered under the Trade Unions Act, 1926. The question of law raised in this reference also came up for consideration before the Tribunal in I. T. A. Nos. 5809 and 5810/(Cal) of 1965-66 for the assessment years 1960-61 and 1961-62. The assessee did not come to this court by way of reference against that decision of the Tribunal. The assessee, however, in the instant case, decided to challenge the order of the Tribunal on the aforesaid question of law.
(3.) The objects set out in Clause (3) of the Rules and Regulations of the Indian Jute Mills Association are, inter alia, as follows : "(3) The object of the association is to regulate relations between members and members and between members and their employees and additionally the objects of the association shall include the following ; (i) To protect, forward and defend the trade of the members of the association ; (ii) to regulate the conduct of the trade ; (iii) To arbitrate on matters of dispute ; (iv) To collect, classify, interpret and circulate statistics ; (v) to encourage and finance measures for improving cultivation of jute and allied fibres in India ; (vi) To encourage and finance technical development in plant and machinery necessary for the manufacture of jute products ; (vii) To encourage and finance the scientific exploration of new uses to which jute can be applied and the discovery of by-products and to promote the commercial exploitation of the results of such research ; (viii) To foster existing markets and open out new markets in India and abroad through publicity and public relations work, the establishing and maintaining of branch offices of the association overseas, the organising of trade delegations and study teams, the undertaking of market surveys and other suitable promotional media ; (viii-a) To seek and/or obtain from any Government or any public authority or any company, body corporate, firm or person, bounties, subsidies, grants or donations for the purpose of the association on such condition and in such manner as the association shall think fit ; (ix) To encourage the use of standard forms of contract in the trade and to assist in securing general recognition of and adherence to established trade customs and practices ; (x) To work for the proper definition of standards of quality of jute and jute products and to encourage the maintenance of these standards ; (xi) To provide training facilities in jute technology for the benefit of the members ; (xii) To promote sound relations between the members and their employees through the observance of common labour policies based on the requirement of the law and general considerations of labour welfare ; (xiii) The establishment of a fund or of funds ; (xiv) The giving of legal assistance in connection with all or any of the above objects within the limits allowed by law ; (xv) The assistance of, or amalgamation within India or overseas, other associations or societies or federations of associations or societies having for their objects or one of their objects the promotion of the interests of the jute trade ; (xvi) To do all such other lawful things as are incidental or conducive to the attainment of the above objects or any of them.";