Sec. 11 & 12 of Income Tax Act, 1961—Trust - Exemption to trust - If in terms of the dominant and primary objectives of the Institution there was no desire to gain profits and the object was to promote trade and commerce not for itself but for the nation was to be construed as a charitable purpose, thus, activities of assessee were charitable in nature, hence, exemption allowed.

Facts: Being aggrieved of the order of CIT(A), revenue went on appeal before Tribunal and raised the grounds that "whether CIT(A) has erred in law in ignoring the fact that the assessee is not eligible for exemption u/s 11 & 12 and whether CIT(A) has erred in ignoring the fact that the assessee activities are not in charitable nature and activities falls under the last limb of section 2(15) and hit by the proviso to section 2(15).

Held, that the expression charitable purpose as defined in Section 2(15) could not be construed literally and in absolute terms. The expression would take its colour and had to be considered in the context of Section 10(23C)(iv). The court held that if in terms of the dominant and primary objectives of the Institution there was no desire to gain profits and the object was to promote trade and commerce not for itself but for the nation was to be construed as a charitable purpose. Thus, on a careful consideration of the entirety of the facts and the material on record and based on the history of the case and the existing precedents on this point, we have no hesitation in holding that the CIT (A) has rightly decided the issue in favour of the assessee Association by directing relief u/s 11 read with Section 12AA. The Assessing Officer is directed to allow exemption with all consequential benefits. - ASSTT. CIT V/s NEW DELHI YOUNG MEN’S CHRISTIAN ASSOCIATION - [2020] 27 ITCD Online 040 (ITAT-DELHI)