1998 (7) TMI 7 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee-trust, stating that carrying on business does not disqualify a charitable institution from tax exemption under section 11 of the Income-tax Act, 1961. The trust, Nahata Charitable Trust, was found to have charitable objects despite engaging in profit-making activities like exhibiting pictures. The court cited previous decisions to support its ruling. The Revenue's challenge to the exemption was dismissed, and the assessee was awarded costs of Rs. 1,000.