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ITA No.947&948 /Bang/2019, ITA 1962/Bang/2018 & ITA Nos.2086 to 2089/Bang/2018 M/s. Udupi Nirmithi Kendra, Udupi & Dakshina Kannada Nirmithi Kendra, Manguluru 4.17 In Yogiraj Charity Trust vs. CIT [1976] 103 ITR 777 (SC), the Supreme Court has held as follows:

If the primary or dominant purpose of 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 valid charity. ..........
4.18 In CIT vs. Surat Art Silks Manufacturer's Association (1980) 121 ITR 1 (SC), the Hon'ble Supreme Court observed as follows:
6. But even if such a contention were permissible, we do not think there is any substance in it. The law is well settled that if there are several objects of a trust or institution, some of which are charitable and some non-

charitable and the trustees or the managers in their discretion are to apply the income or property to any of those objects, the trust or institution would not be liable to be regarded as charitable and no part of its income would be exempt from tax. In other words, where the main or primary objects are distributive, each and everyone of the objects must be charitable in order that the trust or institution might be upheld as a valid charity - Mohammed Ibrahim Riza v. CIT [1930] LR 57 IA 260 and East India Industries ( Madras) Pvt. Ltd. v. CIT [1967] 65 ITR 611. But if the primary or dominant purpose of a trust or institution 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 or institution from being a valid charity - CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722. The test which has, therefore, to be applied is whether the object which is said to be non-charitable is a main or primary object of the trust or institution or it is ancillary or incidental to the dominant or primary object which is charitable. It was on an application of this test that in CIT v. Andhra Chamber of Commerce (supra), the Andhra Chamber of Commerce was held to be a valid charity entitled to exemption from tax. The Court held that the dominant or primary object of the Andhra Chamber of Commerce was to promote and protect trade, commerce and industry and to aid, stimulate and promote the development of trade, ITA No.947&948 /Bang/2019, ITA 1962/Bang/2018 & ITA Nos.2086 to 2089/Bang/2018 M/s. Udupi Nirmithi Kendra, Udupi & Dakshina Kannada Nirmithi Kendra, Manguluru commerce and industry and to watch over and protect the general commercial interests of India or any part thereof and this was clearly an object of general public utility and though one of the objects included the taking of steps to urge or oppose legislation affecting trade, commerce or manufacture, which, standing by itself, may be liable to be condemned as non-charitable, it was merely incidental to the dominant or primary object and did not prevent the Andhra Chamber of Commerce from being a valid charity. The Court pointed out that if "the primary purpose be advancement of objects of general public utility, it would remain charitable even if an incidental entry into the political domain for achieving that purpose, e.g., promotion of or opposition to legislation concerning that purpose, was contemplated". ..............

11. Ld. AR was wholly in agreement with the view of the Tribunal. The objects of the Trust clearly establish that the same was for general public utility and where for charitable purposes. The main objectives of the trust are - to breed the cattle and endeavour to improve the quality of the cows and oxen in view of the need of good oxen as India is prominent agricultural country; to produce and sale the cow milk; to hold and cultivate agricultural lands; to keep grazing lands for cattle keeping and breeding; to rehabilitate and assist Rabaris and Bharwads; to make necessary arrangements for getting informatics and scientific knowledge and to do scientific research with regard to keeping and breeding of the cattle, agriculture, use of milk and its various preparations, etc.; to establish other allied institutions like leather work and to recognize and help them in order to make the cow keeping economically viable; to publish study materials, books, periodicals, monthlies etc., in ITA No.947&948 /Bang/2019, ITA 1962/Bang/2018 & ITA Nos.2086 to 2089/Bang/2018 M/s. Udupi Nirmithi Kendra, Udupi & Dakshina Kannada Nirmithi Kendra, Manguluru order to publicize the objects of the trust as also to open schools and hostels for imparting educationin cow keeping and agriculture having regard to the trust objects.
∗ In CIT vs. Surat Art Silks Manufacturer's Association (1980) 121 ITR 1 (SC), the Hon'ble Supreme Court observed as follows:
"Where an activity is not pervaded by profit motive but is carried on primarily for serving the charitable ITA No.947&948 /Bang/2019, ITA 1962/Bang/2018 & ITA Nos.2086 to 2089/Bang/2018 M/s. Udupi Nirmithi Kendra, Udupi & Dakshina Kannada Nirmithi Kendra, Manguluru purpose, it would not be correct to describe it as an activity for profit. But where, on the other hand, an activity is carried on with the predominant object of earning profit, it would be an activity for profit, though it may be carried on in advancement of the charitable purpose of the trust or institution. Where an activity is carried on as a matter of advancement of the charitable purpose or for the purpose of carrying out the charitable purpose, it would not be incorrect to say as a matter of plain English grammar that the charitable purpose involves the carrying on of such activity, but the predominant object of such activity must be to subserve the charitable purpose and not to earn profit. The charitable purpose should not be submerged by the profit-making motive; the latter should not masquerade under the guise of the former. The purpose of the trust, as pointed out by one of us (Pathak, J.) in Dharmadeepti v. CIT (supra), must be "essentially charitable in nature" and it must not be a cover for carrying on an activity which has profit making as its predominant object."