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2020 (1) TMI 1072 - HC - Income TaxExemption u/s 11 - eligibility to get registration as a charitable organization u/s 12AA - whether the proposed activities of the assessee can be considered charitable within the meaning of Section 2 (15) ? - HELD THAT:- The primary or dominant object of the trust satisfies the conditions laid down under Section 2 (15) of the Act. Even if some ancillary or incidental objects are not charitable in nature, the institution would still be considered as a charitable organisation. As held by the Supreme Court in the case of DIT v. Bharat Diamond Bourse [2002 (12) TMI 8 - SUPREME COURT] merely because some facilities were beyond its main object, that by itself would not deprive the institution of the benefits of a charitable organisation. Reiterating its earlier view in CIT v. Andhra Chambers of Commerce [1964 (10) TMI 19 - SUPREME COURT] , the Constitution Bench of the Supreme Court in Surat Art Silk Cloth Manufacturers Association [1979 (11) TMI 1 - SUPREME COURT] held that if the primary purpose of advancement of objects is for general public utility, the institution would remain charitable, even if there are incidental non-charitable objects for achieving the said purpose. Having given our thoughtful consideration to this issue, we are not persuaded by the submissions advanced by Mr. Maratha, learned Senior Standing Counsel. Merely because the objects of the trust are for the advancement of the business of TPA, it would not ipso facto render the trust to be non-charitable. The objects of the trust are not exclusively for the promotion of the interests of the TPA members. The objects are to provide benefit to general public in the field of insurance and health facilities. In the course of carrying out the main activities of the trust, the benefits accruing to the TPA members cannot, by itself, deny the institution the benefit of being a charitable organisation. No substantial question of law arising for our consideration.
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