Charitable institution, society or trust should 'solely' engage itself in educational activities and not in any activity of profit to enjoy tax exemption

Last updated: 29 October 2022

Save Share

Quick Summary

The Supreme Court has ruled that for a charitable institution, society, or trust to qualify for tax exemption, it must be engaged 'solely' in educational activities and not in any profit-making ventures. The court clarified that the primary purpose must be education, and any business activities must be incidental and separately accounted for. Furthermore, institutions must comply with relevant state laws regarding trust registration to ensure genuineness.

Court :
Supreme Court of India

Brief :
The Hon’ble Supreme Court in M/s. New Noble Educational Society,v. The Chief Commissioner of Income Tax 1 [Civil appeal no. 3795 of 2014 dated October 19, 2022] has held that for tax exemption, the charitable institution, society or trust should ‘solely’ engage itself in educational activities and not in any activity of profit.

Citation :
Civil appeal no. 3795 of 2014 dated October 19, 2022

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

1299 Views Comment Share Income Tax Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments