‘Charitable Purpose’, GPU Category- Post 2008 Amendment – Eligibility for Exemption under Section 11- Section 2(15) – Part I

INTRODUCTION 1.1    The Indian Income-tax Act, 1922 (“1922 Act”) contained and the Income-tax Act, 1961 (“1961 Act”) contains, specific provisions to deal with income derived by a person from property held under trust wholly for charitable or religious purposes. 1.2    Section 4(3) of the 1922 Act provided that any income derived from the property held under trust or other legal obligation wholly for religious or charitable purposes shall not be included in the total income of the person receiving such income subject to fulfillment of conditions stated therein. The term “charitable purpose” was defined in the 1922 Act to include relief of the poor, education, medical relief and the advancement of any other object of general public utility. The last limb of the definition of charitable purpose– ‘advancement of any other object of general public utility’ (hereinafter referred to as “GPU” or “GPU category”) has been subject of matter of litigation and has been subjected to several amendments from time to time. 1.2.1    In the case of The Trustees of the ‘Tribune’, In re (7 ITR 415) (“Tribune”), the assessee claimed exemption under section 4(3) of the 1922 Act for the assessment year 1932 – 33 in respect of income earned by the trust which was created to maintain Tribune Press and Newspaper in an efficient condition, keeping up the liberal policy of the newspaper and devoting the surpl