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P.C. Raja Ratnam Institution vs Municipal Corporation Of Delhi & Ors on 6 September, 1989

6. The Court has to examine the object of any activity for which a charity is established. The object of any activity is a predominant factor to be predominant to find out as to whether the institution is a charitable or commercial. An educational institution, e.g., may be treated as a charitable as well as commercial. in P. C. Rajratnam Institution v. Municipal Corporation of Delhi and others. AIR 1990 SC 816, it was held that imparting education by a society can be held 'charitable purpose' and such society can be granted exemption under Section 115(4)(a) of Delhi Municipal Corporation Act as it imparts education and the fact that some of fee is charged from the students is also not decisive as to society has to incur expenditure for running institution and may further be supported either wholly or in part by voluntary contributions.
Supreme Court of India Cites 4 - Cited by 21 - L M Sharma - Full Document

Municipal Corporation Of Delhi Etc vs Children Book Trust Etc on 21 April, 1992

in Municipal Corporation of Delhi v. Children Book Trust. AIR 1992 SC 1456, it was held that merely because education is imparted in the school, that by itself, cannot be regarded as charitable object. An element of public benefit or philanthropy has to be present. If education is imparted with a profit motive, it will not be a charitable purpose. The decisive factor is object of the Institution. The same activity may be charitable if it is done for the welfare of public or a part thereof and if it is done with the motive to earn profit, it cannot be termed as charitable.
Supreme Court of India Cites 28 - Cited by 106 - Full Document
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