12. Sri J.V. Prasad, learned Standing Counsel for the Income Tax Department, supported the order of the 1st respondent and relied upon the decisions in State of UP Vs. Mahindra and Mahindra[5] , Info Parks, Kerala Vs. Deputy Commissioner of Income Tax and Anothe r[6] , Tata Iron and Steel Company Vs. State of Jharkhand[7] , State Level Committee Vs. Morgardshamma r[8] , Controller of Estate Duty Vs. Kantila l[9] and Director of Inspection and Audit Vs. C.L.Subramaniam[10] . He also relied upon the Memorandum explaining the provisions of the Finance Bill, 2008 and the budget speech of the Minister of Finance on 29-02-2008 while proposing amendment to the term “charitable purpose” defined in Section 2 (15) of the Income Tax Act which was subsequently passed by the Parliament vide the Finance (No.2) Act, 2009 (Act 33 of 2009) by Section 3 (a) (with retrospective effect from 01-04-2009. In the said speech, it was observed by the Minister of Finance that “charitable purpose” includes relief of the poor, education, medical relief and any other object of general public utility. These activities are tax exempt, as they should be. However, some entities carrying on regular trade, commerce or business or providing services in relation to any trade, commerce or business and earning incomes have sought to claim that their purposes would also fall under “charitable purpose”. Obviously, this was not the intention of Parliament and, hence, I propose to amend the law to exclude the aforesaid cases. Genuine charitable organizations will not in any way be effected.” A proviso to clause (15) of Section 2 of the Income Tax Act, 1961 which defines the term “charitable purpose” to the following effect was added by way of amendment:
