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TMI Blog1987 (7) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... N REDDY J.-The two questions referred for our opinion under section 256(1) of the Income-tax Act, 1961, are : " (1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the assessee was engaged in the relevant previous year in pursuit of objects or advancement of public utility not involving the carrying on of any activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the word " Limited " in its name, subject to certain conditions specified therein. One of the conditions was that the income and property of the licensee shall be applied solely for promotion of the objects as set forth in its memorandum of association and that no portion thereof shall be paid or transferred, directly or indirectly, by way of dividend, bonus, or otherwise, by way of profit, to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly or indirectly, in any manner to any one. Clause 10 provides that on winding up or dissolution of the association, the assets remaining shall not be distributed amongst the members of the association, but shall be given or transferred to such other association having objects similar to the objects of this association. The assessee filed a voluntary return disclosing " nil " income for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olving the carrying on of any activity for profit " occurring in clause (15) of section 2 qualify only the words " the advancement of any other object of general utility " and not the words preceding them. It was further pointed out that the test which has to be applied is, whether the predominant object of the activity involved in carrying out the object of general public utility is to subserve t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umber of members of the public, it satisfies the requirement of subserving the general public interest. That is the uniform view taken by all the High Courts in this country. Having regard to the fact that the assessee-association is registered under section 25 of the Companies Act and further having regard to the objects and purposes referred to in detail in the order of the Tribunal relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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