https://www.taxtmi.com/caselaws?id=23784 A trust does not lose its charitable character under section 12(g) of the Karnataka Agricultural Income-tax Act, 1957 merely because its deed permits ancillary investment in industry, trade or business or lending of funds to businessmen. The controlling test is whether the predominant purpose remains charitable, such as medical relief, education, aid to the poor, relief in distress and support of allied public welfare institutions. Where profit-making is only a means of augmenting the corpus and not the real object, the institution continues to qualify as charitable. On that basis, withdrawal of approval on the assumption that any business-related lending destroys charity was unsustainable. en-us Fri, 17 Mar 1989 00:00:00 +0530 Thu, 14 Jan 2010 12:20:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23784 A trust does not lose its charitable character under section 12(g) of the Karnataka Agricultural Income-tax Act, 1957 merely because its deed permits ancillary investment in industry, trade or business or lending of funds to businessmen. The controlling test is whether the predominant purpose remains charitable, such as medical relief, education, aid to the poor, relief in distress and support of allied public welfare institutions. Where profit-making is only a means of augmenting the corpus and not the real object, the institution continues to qualify as charitable. On that basis, withdrawal of approval on the assumption that any business-related lending destroys charity was unsustainable. Case-Laws Income Tax Fri, 17 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23784