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10. The object of Saurashtra Trust in its activity of publishing newspapers has to be a mainly gathered from declaration of the trustees dated 16-6-1942 as supplemented by the second declaration dated 11-12-1945. The first declaration stated that the trust was to work for and to conduct the activities for the welfare of the people of India in general and states people of Cutch, Kathiawad and Gujarat in particular. This was amplified in the second declaration of 1945 and the preamble reads :

"And whereas doubts have been raised as to whether the objects contained in the said declaration of trust are wholly charitable and whereas it is necessary to make it clear and specific in order to leave no doubt that the intent and purpose of the said declaration of trust was and is to secure the benefit of purely charitable objects and that the trust funds have only to be used and have been used for such purposes and no other ...."

11. Every trust has to have resources to sustain itself and to carry out its principal object. As the preamble of the second declaration of 1945 shows, the purpose was to secure the benefit purely of charitable objects and the trust funds will have to be used only for such purpose and no other. It may be that publishing newspaper may be one of the items which the trustees are authorised to carry out on behalf of the trust but publishing newspaper and its circulation by way of sale cannot in any way be regarded as a charitable activity although the society can be said to have been deriving the benefit of reading. The trustees are competent to carry out various other activities such as conducting schools, colleges, libraries; providing medical aid, etc.; providing relief to human beings, animals at times of famine or distress; helping societies or institutions having charitable objects. Curiously, the trust is not engaging in any of these things which can without a second thought be concluded as activities of charitable nature.

13. The trust has some house property which is also yielding substantial income by way of rent. As against this massive income, only a very minor part of it is being spent for the objects of the trust as can be seen from the statements filed by the assessee. We should not be understood to say that we are examining the application of the income for the fulfillment of section 11(1) (a) of the Act, but only to point out that the trust would have spent to substantially meet the charitable objects of the trust if the income to be derived by publishing newspapers was also to achieve that object. It appears to us that the trust has expended only in enlarging the fixed assets pertaining to the printing unit of the newspaper publication. No trust will be formed only to increase the capital of the trust itself and no charitable purpose will be served by mere enhancing its fixed assets. To know the object of an activity, the crucial tests are : (i) what it promotes; (ii) the purpose; and (iii) the result. We fail to understand how any charitable purpose is promoted by publishing newspapers. It also does not result in bringing about any special benefit of charitable nature.

"... If the profits must necessarily feed a charitable purpose, under the terms of the trust, the mere fact that the activities of the trust yield profit will not alter the charitable character of the trust. The test now is, more clearly than in the past, the genuineness of the purpose tested by the obligation created to spend the money exclusively or essentially on charity ......" (p. 256) Expending for adding to the fixed assets is only to increase the corpus o; f the trust and that does not promote any charitable purpose. What appears to us clearly is that the trust in spite of substantial income, is not engaging itself in any of the laudable objects which would have undoubtedly resulted in advancing a charitable cause, but is operating chiefly in the activity of making income by way of publishing and selling newspapers and the charitable element is significantly absent in the pursuits of the trust. It passes ones understanding as how a trust which is soley engaging itself in the activity of publishing newspaper for value is different from any other business enterprise solely established for earning profit by similar activity. An activity of publilshing newspaper for value cannot be said to be an activity of charity merely because it is included in the declaration, for the object of a trust cannot be camouflaged merely because the trustees are authorised to carry out that activity. As Bhagwati, J. observes in Surat Art Silk Cloth Mfrs. Associations case (supra) the charitable purpose should not be submerged by the profit-making motive; the latter should not masquerade under the guise of the former. As we understand the preamble and clause 2 of the second declaration of 1945, it appears to us that the predominant object of the trust is to secure benefit purely of charitable object to the people of India and in particular to the people of certain states, namely, Cutch, Kathiawad and Gujarat. This particular activity cannot be linked to the predominant object set out in the preamble of the second declaration of 1945. Considering the activity of publishing of newspaper in this context, it appears to us that publishing newspapers and selling them for value cannot be treated as one not involving the carrying on of an activity for profit. We are, therefore, clear that the trust is not qualified to gain exemption under section 11, read with section 2(15).