Anything incidental or incidental to the main object


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Charity Activity:

Anything incidental or incidental to the main object should be read with and in conjunction with the main object

The Supreme Court of Calcutta recently ruled that as far as charitable activities are concerned, anything incidental or incidental to the primary purpose should be read together with and in conjunction with the primary purpose

Let’s give a brief overview of the case:

Calcutta High Court Creative Museum Designers vs ITO, Exemptions, Section 1(1), Kolkata,

Brief overview of the case:

The issue before the Supreme Court of Calcutta was whether the petitioner’s activity of establishing museums, science parks, planetariums, interactive galleries, exhibitions and other forms of dissemination of knowledge through informal means, on behalf of other public bodies or entities, should be considered as commercial in nature and within the periphery of the reservation to Article 2(15) of the Income Tax Act 1961? The Calcutta Supreme Court in this case considered Appeal u/s 260A of the Income-tax Act, 1961 against the order of the tribunal, finding that the company was a contractor on the basis of the Appellant’s Section 8 Company’s incidental objects. who was involved in setting up museums etc for others and so the u/s 11 exemption was refused. The court noted that it is a basic principle that anything incidental or incidental to the main object must be read together with and in conjunction with the main object and the incidental objects cannot be read separately and so it was amply clear that the assessed company is a non-profit organization established with the aim of performing turn-key works for all kinds of museums/science centers etc., including all incidental and supporting activities. Finally, as curator of the museum established by the National Council of Science Museum, Ministry of Culture, Government of India, the appellant held that the appellant’s activities amounted to education within the meaning of Article 2(15) and merely because any surplus generated in the course of its activities cannot be regarded as commercial in nature. The appeal was therefore well founded. This judgment will be helpful to many NGOs, charities facing similar actions.



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