TMI Blog1993 (12) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of the institute. 3.3. Coaching, teaching and preparing students for appearing in various examinations, conducted by the Board of Mining Examination and/or A. M. I. E. (1) Section (A B). The petitioner's objects incidental or ancillary to the attainment of the main objects are as follows : 4.1. Establish a library in the institute consisting of books, pamphlets work or manuscripts. 4.2. Hold meetings class rooms and seminars. 4.3. Print, publish, sell, lend or distribute proceedings and reports for promotion of said subjects. 4.4. Encourage the operation of facilities for promotion of research and inventions in mining surveying and instruments and designs connected with such works. 4.5. Establish and maintain a full-fledged laboratory and research centre. 4.6. Acquire, own, use and dispose of any property/assets movable or immovable for and on behalf of the society and to receive, hold and disburse funds for the implementation and promotion of the aims and objects of the society. 4.7. Foster such other activities as would be conducive to the fulfilment of the above objectives. 4.8. To purchase and acquire property/buildings or construct buildings for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SC). Learned counsel has further submitted that even if there is a profit motive in running the said institution, the same would come within the purview of section 12A of the Income-tax Act. Mr. Debi Prasad, learned S. C. C. G., on the other hand, submitted that the word "education" must be confined to the meaning assigned thereto as contained in section 2(15) of the Act. Section 2(15) of the said Act defines "charitable purpose". It says that charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility. Section 12A of the said Act lays down registration of trusts. Section 2(15), before its amendment made by the Finance Act, 1983, which came into effect on April 1, 1984, reads thus: " 'Charitable purpose' includes relief of the poor, education, medical relief and the advancement of any other object of general public utility not involving the carrying on of any activity for profit. " From a comparison of the definition of "charitable purpose" as existed prior to April 1, 1984, and thereafter it is significant in so far as by reason of the said amendment, the words "not involving the carrying on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucational and charitable purpose." After the amendment has been carried out, test 'c' laid down by the Supreme Court in the aforementioned case will have no application. In the case of CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 (SC), the Supreme Court departed from the rules laid down in Pemsel's case holding that the said decision proceeded upon the interpretation of language different from the Indian statute. But having considered some other English decision, it proceeded to observe : "This court, in a recent judgment Laxman Balwant Bhopatkar v. Charity Commissioner [1963] 2 SCR 625 ; AIR 1962 SC 1589, considered whether for the purposes of the Bombay Public Trusts Act (29 of 1950), a trust to educate public opinion and to make people conscious of political rights was a trust for a charitable purpose. The court held (Subha Rao J. dissenting) that the object for which the trust was founded was political, and political purpose being not a charitable purpose, did not come within the meaning of the expression 'for the advancement of any other object of general public utility' in section 9(4) of the Bombay Public Trusts Act, 1950." In the case of CIT v. Sorabji Nusser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be present so as to fall within the sweep of section 10(22) of the Act. We would, at the same time, like to add that such an institution may, incidentally, take other activities for the benefit of students or in furtherance of their education. It may invest its funds in any manner it likes or it may provide scholarships or other financial assistance which may be helpful to the students in pursuing their studies. However, such incidental activities alone, in the absence of actual activity of imparting education by normal schooling or normal conducting of classes, would not be sufficient for the purpose of qualifying the institution to earn the benefit of section 10(22) of the said Act." In that case, therefore, it was held that such income of the institution was not being utilised for the activities of imparting education and, therefore, it is not entitled to the grant of exemption. In this case, the school in question does not appear to be recognised by any authority. It is true that by reason of the Finance Act, 1983, the question as to whether any charitable institution is being run with a profit motive or not has lost its relevance. However, the word "charitable" prefixing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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