1. The questions referred to us in the reference are

1 Whether on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the income derived by the assessee is exempt under S.11 (1) (a) of the Income tax-Act, 1961?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that setting apart reserves under Art.39 of the assessee's memorandum did not vitiate the charitable purpose of the institution?"

The assessee is a company, which was originally registered under the Cochin Companies Act and later on under the Indian Companies Act of 1956. It was allowed to be registered with limited liability without the addition of the word "limited" to its name by the Dewan of Cochin; and the registration was followed under the Indian Companies Act too. The sources of income of the Company are interest on securities, income from property and business of conducting kuries (chit funds). In a previous reference, viz., Dharmodayam Co. v-Commissioner of Income-tax, Kerala (45 ITR. 478), a Division Bench of this Court had occasion to consider the position relating to the kuries conducted by the Company und