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TMI Blog1974 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(a), 3(b)(iv), 3(c), 4(iii) and 4(iv) and they read as follows : " 3. (a) The main objects to be pursued by the company on its incorporation are : (i) to give charity. (ii) to promote education. (iii) to establish or aid in the establishment of associations, institutions, funds, trusts with the object of promoting charity and/or education provided that the company shall not support with its funds or endeavour to impose on, or procure to be observed by, its members or others any regulation or restriction which, if an object of the company, would make it a trade union. (b) The objects incidental or ancillary to the attainment of the above main objects are : ...... (iv) to run chitties (kuries) ...... (c) The other ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able purpose and must, therefore, be exempt from tax under section 11 of the Income-tax Act, 1961, for short, " the Act ". This is the very same question that we dealt with in a batch of cases, Income-tax Referred Cases Nos. 51 to 56 and 79 of 1972, wherein the facts were practically the same and in which we pronounced judgment just now. We would, however like to add a word more in this case in addition to what we said in our judgment in those cases. In view of the altered definition of the term " charitable purpose ", the question whether an object of a company is a main object, or is only an incidental object loses much of its significance. We say so because we conceive that even in cases where a business is conducted not in carrying out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinciple has been clearly expressed if we may say so with respect by Lawrence L.J. in Keren Kayemeth Le Jisroel Ltd. v. Inland Revenue Commissioners as follows : " The instrument with which this case is concerned consists of the memorandum of association of the company and it is essential to bear in mind that in order to obtain exemption from income-tax under the section it is not enough that the purposes described in the memorandum should include charitable purposes, the memorandum must be confined to those purposes so that any application by the company of its funds to non-charitable purposes would be ultra vires ...... The extensive powers conferred on the company by sub-clauses (2) to (22) (to some of which I have referred in orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refrom was to be applied for the objects of the company which are stated in clause 3(a). The business of conducting the kuries is itself mentioned as an incidental object of the company in clause 3(b). Under clause 3(a) the charitable purposes are mentioned as " to give charity, to promote education and to establish or aid in the establishment of associations, institutions, funds, trust with the object of promoting charity, and/or education.... ". We have no doubt whatever that these charitable purposes include and comprehend advancement of objects of general public utility and particularly the carrying on of business. And since there is no restriction that any part of the income from the business must be applied to charitable purposes alon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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