1990 (11) TMI 5 - SC - Income Tax

Charitable Purpose - Whether the income derived by the assessee from its General Fund and South Indian Women Workers Executive Committee Fund is entitled to exemption under section 11 - Whether, the income from the purchase and sale of handicrafts, without setting up educational institutions or training centres for advancement of studies would constitute charitable purpose and would, as such, qualify for exemption

Summary

The Supreme Court allowed the appeal by certificate from the Madras High Court judgment. The High Court held that the assessee's objects were not "charitable purposes." However, the Supreme Court found that as long as the purpose does not involve profit, the definition of "charitable purpose" is satisfied. The appeal was allowed in favor of the assessee.