| Case ID |
38c5cce3-a633-4545-af11-cbb0c1a0347a |
| Body |
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| Case Number |
Civil Appeal No. 2129 of 1970 |
| Decision Date |
Sep 17, 1975 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the incomes of the chambers sought to be taxed are taxable. The case revolved around the interpretation of 'charitable purpose' as defined in section 2(15) of the Income-tax Act, 1961. The Court concluded that the activities carried out by the Indian Chamber of Commerce, including arbitration fees and fees for certificates of origin, were deemed as activities for profit, thus not qualifying for tax exemption under the definition of 'charitable purpose'. The decision dismissed Civil Appeal No. 2129 of 1970 and allowed Civil Appeals Nos. 2455 to 2457 of 1972, affirming that the chambers must confine their activities to those not aimed at profit in order to qualify for charitable status. |
| Summary |
The case of Indian Chamber of Commerce v. Commissioner of Income-tax addresses the interpretation of 'charitable purpose' under the Income-tax Act, 1961. The Supreme Court examined whether certain income-generating activities of the Indian Chamber of Commerce, such as arbitration fees and certificates of origin, could be classified as charitable purposes exempt from taxation. The Court emphasized that the definition of charitable purpose must not involve activities for profit. This landmark ruling clarifies the requirements for tax exemption for organizations claiming charitable status. The decision is crucial for chambers of commerce and similar entities in understanding their tax obligations while promoting public utility without profit-driven motives. Keywords: charitable purpose, tax exemption, Income-tax Act, 1961, Supreme Court, arbitration fees, public utility, non-profit activities. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income-tax,
Indian Chamber of Commerce,
Cochin Chamber of Commerce
|
| Judges |
V.R. Krishna Iyer,
A.C. Gupta,
S. Murtaza Fazal Ali
|
| Lawyers |
Not available
|
| Petitioners |
Indian Chamber of Commerce
|
| Respondents |
Commissioner of Income-tax
|
| Citations |
1975 SLD 751 = (1975) 101 ITR 796
|
| Other Citations |
Commissioner of Income-tax v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC),
Sole Trustee, Loka Shikshana Trust v. Commissioner of Income-tax [1975] 101 ITR 234 (SC),
A.P. State Road Transport Corporation v. Commissioner of Income-tax [1975] 100 ITR 392 (AP)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
2(15),
11,
28,
256(1)
|