Addl. CIT v. Surat Art Silk Cloth Manufacturers Association

121 ITR 1Supreme Court of India1980#232 most cited

What is Addl. CIT v. Surat Art Silk Cloth Manufacturers Association authority for?

A charitable institution, whose predominant object is general public utility, can engage in non-charitable activities yielding incidental profits, provided these profits are deployed to achieve the dominant charitable object. A subsidiary object, if ancillary to the primary charitable purpose, does not negate the institution's charitable character.

328

judgments rely on this decision, according to BharatTax’s citation analysis of 372,010 Indian tax judgments — from 2001 to 2026.

Also referred to as

Addl CIT v Surat Art Silk Cloth Manufacturers Association · Surat Art Silk · Section 2(15) · Section 11 · charitable purpose · general public utility · dominant object · incidental profit · deployment of profits · unamended Section 2(15) · Section 12 · Section 13(8)

Also reported as

2 Taxmann 501

Sections most often in play

Section 11Section 2(15)Section 12Section 12ASection 13(8)Section 143(3)Section 12AASection 10(20A)

Issues it is cited on

section 52(2)section 10(20a)advancement of general public utilitysection 13(8)section 52proviso to section 2(15)section 11(4a)section 2(15)cancellation of registrationsection 13(3)section 10(23c)section 11(1)

Judgments citing Addl. CIT v. Surat Art Silk Cloth Manufacturers Association

Commissioner of Income Tax vs. Agricultural Market Committee

ITTA/251/2008HC Telangana01 Mar 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

For Respondent: Ms. K.Lalitha, Standing Counsel for
Section 10(20)Section 10(29)Section 12ASection 260ASection 4Section 4(1)

…unsel for Agricultural Market Committees ? Cases referred 1. (2007) 295 ITR 561 : (2007) 14 SCC 704 2. (1939) VII ITR 415 (PC) 3. (1965) LV ITR 722 (SC) 4. (1980) 121 ITR 1 (SC) : (1980) 2 SCC 31 5. (1986) 159 ITR 1 (SC) 6. (2007) 291 ITR 419 (Bom) 7. (2007) 294 ITR 563 (P&H) 8. (2009) 308 ITR 380 (MP) 9. (2009) 308 ITR 401 (MP) 10. AIR 1959 SC 300 11. AIR 1962 SC 97 12. AIR 1962 SC 1517 13. AIR 1968 SC 1408 14. AIR 1983 SC 1246 : (1983) 4 SCC 353 15. (1939) VII ITR 415 (PC) 16. (1965)…

Commissioner of Income Tax, Guntur vs. Agricultural Market Committee, Kangiri

ITTA/318/2008HC Telangana01 Mar 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

For Respondent: Ms. K.Lalitha, Standing Counsel for
Section 10(20)Section 10(29)Section 12ASection 260ASection 4Section 4(1)

…unsel for Agricultural Market Committees ? Cases referred 1. (2007) 295 ITR 561 : (2007) 14 SCC 704 2. (1939) VII ITR 415 (PC) 3. (1965) LV ITR 722 (SC) 4. (1980) 121 ITR 1 (SC) : (1980) 2 SCC 31 5. (1986) 159 ITR 1 (SC) 6. (2007) 291 ITR 419 (Bom) 7. (2007) 294 ITR 563 (P&H) 8. (2009) 308 ITR 380 (MP) 9. (2009) 308 ITR 401 (MP) 10. AIR 1959 SC 300 11. AIR 1962 SC 97 12. AIR 1962 SC 1517 13. AIR 1968 SC 1408 14. AIR 1983 SC 1246 : (1983) 4 SCC 353 15. (1939) VII ITR 415 (PC) 16. (1965)…

Dy.Dir. of I.T vs. Shanti Devi Progressive Edu.Socy

ITA - 93 / 1999HC Delhi10 Feb 2011
Section 10(22)

…r the predominant object of the activity involved is to subserve the charitable purpose or to earn profit by referring to the judgment in the case of Additional Commissioner of Income Tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association; (1980) 121 ITR 1 (SC). As contra to this, where the profit making is the predominant object of the activity, the purpose though an object of general public utility, would cease to be a charitable purpose. Thus, the pre-dominant object of the activity is the key factor as canvassed by the learned counsel. Similarly, reliance placed on Aditnar Educati…

Director of Income Tax (Exemptions)

Accordingly, present appeals, being bereft of merit, are dismissed in

ITA/1489/2010HC Delhi24 Sept 2010
Section 12ASection 2(15)Section 260A

…ed hereinbelow: “The aforesaid findings are apparently findings of fact based on an appraisal of the material on record and on these findings the law laid down by the Supreme Court in Additional CIT v. Surat Art Silk Cloth Manufacturers Association [1980]121 ITR 1 is squarely applicable. It was held that the true meaning of the words "not involving the carrying on of any activity for profit" used in section 2(15) of the Act is that when the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment…

Director of Income Tax (Exemptions)

Accordingly, present appeals, being bereft of merit, are dismissed in

ITA/1485/2010HC Delhi24 Sept 2010
Section 12ASection 2(15)Section 260A

…ed hereinbelow: “The aforesaid findings are apparently findings of fact based on an appraisal of the material on record and on these findings the law laid down by the Supreme Court in Additional CIT v. Surat Art Silk Cloth Manufacturers Association [1980]121 ITR 1 is squarely applicable. It was held that the true meaning of the words "not involving the carrying on of any activity for profit" used in section 2(15) of the Act is that when the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment…

Director of Income Tax vs. Delhi International Football League

Accordingly, present appeals, being bereft of merit, are dismissed in

ITA - 1489 / 2010HC Delhi24 Sept 2010
Section 12ASection 2(15)Section 260A

…ed hereinbelow: “The aforesaid findings are apparently findings of fact based on an appraisal of the material on record and on these findings the law laid down by the Supreme Court in Additional CIT v. Surat Art Silk Cloth Manufacturers Association [1980]121 ITR 1 is squarely applicable. It was held that the true meaning of the words "not involving the carrying on of any activity for profit" used in section 2(15) of the Act is that when the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment…

Director of Income Tax vs. Delhi International Football League

Accordingly, present appeals, being bereft of merit, are dismissed in

ITA - 1485 / 2010HC Delhi24 Sept 2010
Section 12ASection 2(15)Section 260A

…ed hereinbelow: “The aforesaid findings are apparently findings of fact based on an appraisal of the material on record and on these findings the law laid down by the Supreme Court in Additional CIT v. Surat Art Silk Cloth Manufacturers Association [1980]121 ITR 1 is squarely applicable. It was held that the true meaning of the words "not involving the carrying on of any activity for profit" used in section 2(15) of the Act is that when the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment…

Asst. Commr. of Income Tax, Madras vs. Thanthi Trust

C.A. No.-004406-004410 - 1996Supreme Court31 Jan 2001
For Respondent: THANTHI TRUST ETC. ETC
Section 11Section 148Section 2(15)Section 4(3)(i)

…this Court which comes closest to putting a meaning to Section 13(1)(bb) is the concurring judgment of R.S. Pathak, J. (as he then was) in Additional Commissioner of Income-tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association (1980) 121 ITR 1. He said, When it was found that judicial decisions had held the restrictive clause (not involving the carrying on of any activity for profit) in Section 2(15) to control the fourth head (the advancement of any other object of general public utility) only, and not also the first three heads (relief of the poor, education and m…