COMMISSIONER OF INCOME TAX vs DHARMODAYAN & CO., KERALA

The Supreme Court held that income derived from kuries (chit funds) is exempt from taxation under Section 11(1)(a) of the Income-Tax Act, 1961, as it is applied for charitable purposes. The Court affirmed the Kerala High Court's decision in Dharmodayan Co v. C.I.T. Kerala, stating that the definition of 'charitable purpose' under Section 2(15) does not invalidate the earlier ruling. The Court concluded that the income from kuries, when applied for religious or charitable purposes, remains exempt from tax, thereby upholding the Tribunal's decision in favor of the assessee.