TMI Blog1988 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... s had a chequered career. Finally, in Original Petition No. 6950 of 1984, this court directed the Government to give an opportunity to the petitioner and decide the claim for exemption pleaded by the petitioner afresh. In pursuance thereto, the Government of Kerala heard the matter afresh and passed an order dated September 13, 1988, evidenced by exhibit P-7, holding that the petitioner is not eligible for exemption from the levy of tax under the Kerala Building Tax Act, 1975. The challenge is against exhibit P-7 order. I heard counsel for the petitioner, C. S. Balagangadharan. It was argued that the building in question, constructed by the company, is eligible for exemption under section 3(1)(b) read with the Explanation of the Kerala Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owances, bonus or other payments, or by creating and from time to time subscribing or contributing to provident fund and other associations, institutions, fund or trust and by providing or subscribing or contributing towards places of instructions and recreation hospitals and dispensaries, medical and other assistance as the company shall think fit and to subscribe or otherwise to assist or to guarantee money to charitable, benevolent, religious, scientific, national or other institutions or objects, which shall have any moral or other claim to support or aid by the company either by reason of locality of operation or of public and general utility or otherwise." The petitioner's counsel placed reliance on Clause Ill-B sub-clauses (32) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1975, and the request, therefore, is rejected." The question as to whether the predominant object of the institution is a charitable one and the building in the instant case is used principally for charitable purposes is largely one of fact. It should be stated that though the various sub-clauses in clause III-B of exhibit P-1 are labelled as objects incidental or ancillary to the attainment of the main objects, they are really powers and not objects. There is a distinction between the objects of the institution and the powers of the trustees or the directors. A perusal of sub-clauses (1) to (34) of clause III-B in exhibit P-1 would go to show that the various sub-clauses are really in the nature of powers. We have to read the memora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pernicious practice of registering memoranda of association which, under the clause relating to objects, contain paragraph after paragraph not specifying or delimiting the proposed trade or purpose, but confusing power with purpose and indicating every class of act which the corporation is to have power to do. The practice is not one of recent growth. It was in active operation when I was a junior at the Bar. After vain struggle, I had to yield to it, contrary to my own convictions. It has arrived now at a point at which the fact is that the function of the memorandum is taken to be, not to specify, not to disclose, but to bury beneath a mass of words the real object or objects of the company with the intent that every conceivable form of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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