INDIAN CHAMBERS OF COMMERCE vs C.I.T., WEST BENGAL II, CALCUTTA

The Supreme Court interpreted Section 2(xv) of the Income Tax Act, 1961, clarifying that while chambers of commerce may pursue charitable purposes, income derived from activities for profit disqualifies them from tax exemption under Section 11. The Court established that the advancement of general public utility must not involve profit-making activities; otherwise, the claim for exemption collapses. The income from arbitration fees, certification fees, and profit shares related to non-charitable activities was deemed taxable.