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80.In case of a Charitable Institution, there is an absence of quid pro-quo for services. The Charitable Institutions largely depend on the Charity and donations from public to achieve their objects as per the Trust Deed in case of a Charitable Institution or Memorandum of Association in case of a Society. The Charitable Institutions are ordinarily not expected to involve themselves in the generation of income and the economic activities unless such activity https://www.mhc.tn.gov.in/judis itself is meant for re-habiting its beneficiaries. Such Institutions sometimes employ physically handicapped persons or mentally challenged persons and destitute and/or other physically challenged persons etc. for the generation of income. Generation of income in such case is incidental to the main activity. Generation of income can be a by-product of the charitable activity. Therefore, there is no merit in the contention of the petitioner that it is a charitable hospital.

85.When under a similar circumstances the Division Bench of this Court has held this exemption was not available to the said Hospital, it remains inexplicable how a different view can be entertained.

86.Thus, if the objects are distributive, each and every one of the objects must be charitable in order to conclude that the trust might was a valid charity. Same principle is applicable in the case of a building in which medical hospital is being run with a charitable https://www.mhc.tn.gov.in/judis object. Merely because a portion of service is charitable would clothe such hospital with a tag of a charitable hospital to claim exemption. If such hospital is collecting money for the services rendered, it is not entitled to be called as charitable hospital. .........