Section 10(20A) of the Income Tax Act

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.

Development authorities can continue to be regarded as existing for a 'Charitable Purpose' under Section 2(15) of the Income Tax Act, even after the introduction of the proviso to that section. The contention that such authorities automatically lose their charitable status due to the proviso is incorrect.

An organization qualifies as charitable under Section 2(15) only if its income and property are solely applied for its charitable objects and, upon dissolution, its residual assets are restricted for utilization exclusively for charitable purposes, not for distribution to members or as general state revenue.

The true test to determine the character of a levy is the primary object and essential purpose intended to be achieved by it.

When determining if an activity serves charitable purposes for tax exemption, the primary consideration is whether its predominant object is to make a profit or to carry out charitable activities.

An organization’s purpose qualifies as 'general public utility' under section 2(15) if its primary objective is charitable, even if it incidentally benefits a specific group or generates some profit, provided the dominant motive is not profit-making. Such an entity is eligible for exemptions under the Act.

The State Government's power to levy Forest Development Tax (FDT) under Section 98-A of the Act is limited to specific bodies. Notifying 'lease holders of mines and quarries situated in forest area' as such a body may be ultra vires the section.

An employer's contribution to a recognized provident fund qualifies as a business expenditure for income tax purposes.

A mistake rectifiable under Section 154 must be obvious and apparent from the record, not one that requires a long process of reasoning or constitutes a mere change of opinion.