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TMI Blog1990 (6) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 ? " 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade Unions Act, 1926 (XVI of 1926), formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen ;" I am unable to uphold this contention of Mr. Bhattacharjee. In order to succeed in this reference, the assessee will have to establish that the association was formed primarily for the purpose of regulating the relations between workmen and employers and/or between workmen and workmen. If each one of the objects of the association is to be treated as a primary object, then it cannot be said that the association was "formed primarily" for any particular object. Sub-clause (xii) of clause (3) of the Rules and Regulations of the Association is the only clause dealing with relationship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Tribunal in that case. Calcutta Hydraulic Press Association's case [1980] 121 ITR 414 (Cal) was noted and distinguished in the case of Indian Sugar Mills Association v. CIT [1984] 150 ITR 593 (Cal), where it was held that the Indian Sugar Mills Association, though registered under the Trade Unions Act having some objects dealing with and regulating the terms and conditions regulating the employment and also good relations between employers and employees was not an association formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, as was evident from its rules and regulations. The association of employers was only set up entirely for the protection of the interests ..... X X X X Extracts X X X X X X X X Extracts X X X X
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