The claim of exemption u/s 11 of the Act by Assessee was rejected by the AO because according to AO the Assessee was carrying out objects of general public utility and generated income from letting out of building and cultural hall, etc. which was in the nature of business activity and therefore, the Assessee was hit by the proviso to section 2(15) and ceased to have any ‘charitable purpose’. The decision was upheld by CIT(A). The ITAT examined the Income and Expenditure Accounts and held that the activities undertaken by the Assessee throughout the year and it came to a finding that the assessee had actually carried out those objects which could be classified as Medical relief to poor patients, education to deserving students and relief to the needy sections of the society and shied away from taking up any objects for ‘advancement of any other object of general public utility. Entitle to exemption.  (AY 2010-11)