Additional Commissioner Of Income-Tax ... vs Victoria Technical Institute on 12 April, 1978
...The position as it existed under the Act of 1922 was that once the purpose of the trust was relief of the poor, education, medical relief or the advancement of any other object of general public utility, the trust was considered to be for a charitable purpose. As a result of the addition of the words 'not involving the carrying on of any activity for profit' at the end of the definition in Section 2(15) of the Act, even if the purpose of trust is 'advancement of any other object of general public utility', it would not be considered to be 'charitable purpose' unless it is shown that the above purpose does not involve the carrying on of any activity for profit. The result thus of the change in the definition is that in order to bring a case within the fourth category of charitable purpose, it would be necessary to show that : (1) the purpose of the trust is advancement of any other object of general public utility and (2) the above purpose does not involve the carrying on of any activity for profit. Both the above conditions must be fulfilled before the purpose of the trust can be held to be charitable purpose. ..." (p. 242)
Our above view in the present case is also supported by the decision of the Madras High Court in Victoria Technical Institute's case (supra). We, therefore, hold that the assessee-trust has not been established for 'education'. Further for the reasons stated by the Tribunal in the aforesaid decision and by the Hon'ble Allahabad High Court as detailed in paragraphs 18 and 19 above, with which we agree and which we respectfully follow, we hold that the assessee-society trust has been established for 'advancement of any other object of general public utility not involving the carrying on of any activity for profit'.