Law:

Section:

Section 11, read with section 2(15), of the Income-tax Act, 1961 – Charitable or religious trust – Exemption of income from property held under – Assessment years 1962-63 to 1968-69 – Appellant/assessee held property under trust objects of assessee were to raise funds by conducting kuries with company as foreman, receiving donations and subscriptions by lending money on interest; to do needful for promotion of charity, education, industries etc. and public goods – Subsequently, assessee made certain amendments in its objects stating that object of company was to do needful for promotion of charity, education, medical relief and other matters of public goods – Assessee claimed exemption from tax income from kuries and money lending under section 11 – Whether operation of industry ordinarily envisages a profit making activity and so far as advancement of public good was concerned, it was open to appellant to pursue a profit making activity in course of carrying out that purpose - Held, yes – Whether, therefore, objects like to do needful for promotion of charity, education, industry and public good, contained in original unamended memorandum were objects which, while referable to residual general head in definition of "charitable purpose" in section 2(15), none the less did not satisfy condition that they should not involve 'carrying on of any activity for profit' – Held, yes – Whether amended objects of memorandum were also fell under residuary general head mentioned in section 2(15) and same consideration be applied and same conclusion be followed as was taken under original memorandum of association – Held, yes – Whether, therefore, assessee was not entitled to exemption – Held, yes FACTS The objects of the appellant/assessee-company were to raise funds by conducting kuries with company as foreman, receiving donations and subscriptions by lending money on interest and by such other means as the company deem fit, to do the needful for the promotion of charity, education, industries, etc. and public goods, for carrying on the business of the company and for the advancement of the purpose mentioned above in so far as is appropriate, to construct buildings or to…

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