SOLE TRUSTEE LOKA SHIKSHANA TURST vs COMMISSIONER OF INCOME TAX, MYSORE

The Supreme Court held that under Section 2(15) of the Income Tax Act, 1961, the term 'charitable purpose' encompasses the advancement of any object of general public utility, which does not exclusively involve profit-making activities. The Court clarified that the term 'profit' in this context is not limited to private profit, thus allowing trusts engaged in educational activities, even if they generate revenue, to qualify for tax exemptions. The appeal by the Loka Shikshana Trust was dismissed, affirming the Income Tax Officer's decision that the trust's primary activities constituted profit-making.