1989 (1) TMI 25

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....), (e), (g), (h), (i), (k), (n), (p) and (w) of the objects clause 3 of the memorandum of association constitute 'charitable purposes' within the meaning of section 2(15) of the Income-tax Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case and having regard to the various objects contained in clause 3 of the memorandum of association and on a proper construction of sections 2 (15), 11, 12 and 12A of the Income-tax Act, 1961, the assessee was entitled to exemption from income-tax ?" The prayer of the Revenue under section 256(1) of the Act was denied by the learned Tribunal on the ground that similar prayers had been rejected by it in R. A. Nos. 125 (Gauhati) to 130 (Gauhati) of 1976-77. Those applications unde....

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...., our attention has been invited by Shri Bhattacharjee to Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1 (SC) in which it has been held that if the primary or dominant purpose of a trust or institution is charitable, the subsidiary object would not militate against its charitable character and the purpose of the assessee would not be any the less charitable. It thus seems that, to decide whether the purpose of an assessee is charitable or not within the meaning of section 2(15) of the Act, attention has to be paid to the dominant or primary purpose of the assessee. As, in this case, it has been held by the learned Tribunal in its earlier judgment which was followed in the present case that the main object of th....