https://www.taxtmi.com/caselaws?id=36475 A trust deed that gives trustees an independent power to establish or carry on commercial or industrial concerns will defeat exemption where a non-charitable object can be applied to the trust property; on that basis, the Jaipur Charitable Trust was denied exemption under the 1922 and 1961 income-tax provisions. By contrast, where the deed contains no separate business object and any profit-making activity is only incidental to a predominantly charitable purpose, exemption is available; on that basis, the Durga Trust remained within the exemption scheme. The governing test is whether the trust is held wholly for charitable purposes or whether a non-charitable object is also authorised. en-us Mon, 14 Apr 1980 00:00:00 +0530 Mon, 22 Mar 2010 15:31:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36475 A trust deed that gives trustees an independent power to establish or carry on commercial or industrial concerns will defeat exemption where a non-charitable object can be applied to the trust property; on that basis, the Jaipur Charitable Trust was denied exemption under the 1922 and 1961 income-tax provisions. By contrast, where the deed contains no separate business object and any profit-making activity is only incidental to a predominantly charitable purpose, exemption is available; on that basis, the Durga Trust remained within the exemption scheme. The governing test is whether the trust is held wholly for charitable purposes or whether a non-charitable object is also authorised. Case-Laws Income Tax Mon, 14 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36475