https://www.taxtmi.com/caselaws?id=5921 An institution advancing an object of general public utility remains charitable where its dominant purpose is public utility, even if it operates on business principles and earns surplus incidentally. The statutory test under the 1922 and 1961 income-tax regimes turned on whether profit-making was the predominant object; it was not. A road transport corporation created to provide efficient, adequate and coordinated transport services was held to serve a public utility purpose, and the surplus provisions did not convert that purpose into a profit motive because the surplus was earmarked for specified public objectives. The income was therefore exempt under both Acts. en-us Fri, 07 Mar 1986 00:00:00 +0530 Thu, 30 Oct 2025 08:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5921 An institution advancing an object of general public utility remains charitable where its dominant purpose is public utility, even if it operates on business principles and earns surplus incidentally. The statutory test under the 1922 and 1961 income-tax regimes turned on whether profit-making was the predominant object; it was not. A road transport corporation created to provide efficient, adequate and coordinated transport services was held to serve a public utility purpose, and the surplus provisions did not convert that purpose into a profit motive because the surplus was earmarked for specified public objectives. The income was therefore exempt under both Acts. Case-Laws Income Tax Fri, 07 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5921