Hamdard Laboratories India And … vs Assistant Director Of Income Tax … on 18 September, 2015

3.The newly inserted proviso to section 2 (15) will, apply only to
entities whose purpose is „advancement of any other object of
general public utility‟ i.e. the fourth limb of the definition of
„charitable purpose‟ contained in section 2(15). Hence, such
entities will not be eligible for exemption under section 11 or
under section 10(23 C) of the Act if they carry on commercial
3.2 In the final analysis, however, whether the assessee has for
its object „the advancement of any other object of general public
utility‟ is a question of fact. If such assessee is engaged in any
activity in the nature of trade, commerce or business or renders
any service in relation to trade, commerce or business, it would
not be entitled to claim that its object is charitable purpose.”
Reliance is also placed on the speech of the Finance Minister relating to the
amended definition of „charitable purpose‟, wherein he had stated that it is
not meant to apply to genuine charitable organisations.

Source: Indian Kanoon

Leave a Reply