Monument preservation qualifies as charity where ancillary receipts remain incidental and section 2(15) proviso does not apply.

An assessee trust engaged in preserving and operating historical monuments and a museum fell within the charitable limb of preservation of monuments or objects of artistic or historic interest under section 2(15), so exemption under section 11 remained available. The proviso to section 2(15) was held inapplicable because it targets the residuary object of general public utility where trade, commerce or business is carried on, not a trust whose primary object is monument preservation. Receipts from licences, film shooting, dinners, craftsmen demonstrations and administrative recoveries were treated as incidental to the main charitable activity and not indicative of a profit-oriented business.

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Issues: Whether the assessee trust, engaged in preserving and operating historical monuments and a museum, fell within the charitable purpose of preservation of monuments or objects of artistic or historic interest under section 2(15), so as to remain entitled to exemption under section 11 notwithstanding receipts from licences, location fees and similar ancillary activities.

Analysis: The Trust Deed and the actual conduct of the assessee showed that its dominant object was to protect, preserve and improve historical monuments and objects of art and history. The proviso to section 2(15) applies to entities falling within the residuary limb of advancement of any other object of general public utility when they carry on trade, commerce or business, but it does not defeat a trust whose primary object is preservation of monuments or historic objects. The receipts from film shooting, dinners, craftsmen demonstrations and administrative recoveries were held to be incidental to the main charitable activity and not evidence of a business carried on with profit motive. On the facts, there was no material change from earlier years and the assessee continued to pursue its charitable objects.

Conclusion: The assessee's case was covered by the charitable limb relating to preservation of monuments or objects of artistic or historic interest, the proviso to section 2(15) did not apply, and exemption under section 11 remained available.

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