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25. Therefore, the test to be applied in such cases is as to whether the main or primary objects of the trust or dominant purpose thereof are charitable or the main or primary objects are distributive, some of which may be charitable and some of them are non-charitable. In a case where the main or primary objects of the trust are charitable, the other objects may be merely ancillary or incidental to the dominant purpose of the trust and such a trust shall be considered to be a charitable one. On the other hand, if the main objects of a trust are distributive and some of them are non-charitable, then the trust or the institution cannot be held to be a valid charity. If the other objects are ancillary or incidental to the dominant purpose of the trust, then the trust would still remain as a valid charity because the main object or the dominant purpose thereof is charitable.

28. One of the objections raised in the present case is that "other constructive activities on the lines of Mahatma Gandhi's doctrine are vague and uncertain objects and as the entire income of the trust could be spent by the trustees on such objects, the property of the trust should not be considered to be held wholly for charitable purposes. It may be observed that the other objects mentioned in the trust deed, like promotion and manufacture of khadi, removal of untouchability and upliftment of women are illustrative of the type of charitable objects to which the trustees would apply the funds of the trust and so "other constructive activities" merely incorporates ancillary or incidental purposes which could be similar to those which have been specifically mentioned in the trust deed and precede the "other constructive activities". The residuary provision relating to "other constructive activities" must take its colour from the preceding objects specified in the trust deed and as there can be no doubt that the preceding three objects specified in the trust deed are essentially charitable purposes, the ancillary object specified in the trust deed as "other constructive activities" must likewise be construed as a charitable object, in furtherance of and in consonance with the other objects of the trust.

35. In Yogiraj Charity Trust v. CIT [1976] 103 ITR 777 (SC), the same question arose that when some objects are non charitable while some others are charitable, could the trust be entitled to claim exemption from tax ? Their Lordships of the Supreme Court observed as under in the aforesaid case (pp.781 and 782) :

"The question is whether exemption can be granted where some objects are charitable and some non-charitable. Where there are several objects of a trust, some of which are charitable and some non-charitable, and the trustees in their discretion are to apply the income to any of the objects, the whole trust fails and no part of the income is exempt from tax. Where the objects are distributive, each and every one of the objects must be charitable in order that the trust might be upheld as a valid charity. If no definite part of the property or its income is allocated to charitable purposes and it would be open to the trustees to apply the whole income to any of the non-charitable objects, no exemption can be claimed......If the primary or dominant purpose of a trust is charitable, another object which by itself may not be charitable but which is merely ancillary or incidental to the primary or dominant purpose would not prevent the trust from being a valid charity. A clear distinction must be drawn between the object of a trust and the powers conferred upon the trustees as incidental to the carrying out of the object. If the only object of a trust is the construction and maintenance of a swimming bath, which is a purpose of general public utility, the fact that the trustees are given the power to supply or sell refreshments to persons who resort to the bath would not make the trust any the less charitable."

38. A review of the aforesaid decisions leads to the conclusion that if the objects or purposes of the trust or institution are wholly religious or charitable, then there would be no difficulty in holding that the trust has been created for advancement of the object of general public utility and is entitled to exemption from tax. However, if some of the objects or purposes of the trust are charitable while some others are not charitable, the dominant or primary object or objects are the determining factors. If the primary or dominant object of the trust or institution is charitable, other objects which are merely ancillary or incidental to the primary or dominant purpose, even if they are non-charitable, would not prevent the trust or institution from being a valid charity qualifying for exemption from tax. But the situation would be different if the objects of the trust are distributive and the trustees have the sole discretion to apply the income of the trust to any one of the objects of the trust. In such cases, where charitable or non-charitable objects co-exist in a deed of trust and all the objects are distributive, then the trustees may, if they so like, utilise the entire income of the trust for purposes or objects which are wholly non-charitable. In those cases, the income of the trust would not be qualified for exemption under the Act. However, in cases where the trust deed specifies that a definite amount out of the income of the trust properties or a specified part of such income would be spent for purposes which are religious or charitable in nature, then the trust would be entitled to exemption from tax to the extent of the amount or portion of its income so specified.