Sankar Prasad Mitra, J. - (1.) This is a reference under Section 256(1) of the Income Tax Act, 1961. The assessment years involved are 1965-66 to 1968-69. The relevant accounting years are the calendar years 1964, 1965, 1966 and 1967, respectively.
(2.) By the memorandum of association adopted on June 17, 1940, the Bengal National Chamber of Commerce & Industry (hereinafter referred to as "the Chamber"), took over the assets and liabilities and rights and privileges of the unincorporated chamber established in 1887. The new chamber was to function in all respects in continuation of the unincorporated chamber.
(3.) According to the statement of the case the objects of the association are set out in Article III of the said memorandum and the principal object was the advancement of an object of general public utility as envisaged by Section 11 of the Income Tax Act, 1961, read with Section 2(15) thereof. Article IV of the memorandum stated that the objects of the chamber extended to the whole of India and West Bengal in particular. Articles V and IX of the memorandum stated that the income and property were to be applied solely for the promotion of the objects set forth in the memorandum and no portion thereof even on the winding up or dissolution was to go to any of its members. The articles of association providing for the qualifications of the members, etc., were also adopted at a meeting held on June 17, 1940. There were to be five classes of members.;