SC: Advancement of general public utility services would not be charitable if done for profit purpose
Last updated: 21 October 2022
Court :
Supreme Court of India
Brief :
THE SUPREME COURT HELD THAT entities created with the object of advancing general public utility cannot seek exemption under the Income Tax Act 1961 under the head "charitable purposes" if they are engaging in any trade, business, commerce or providing any service for any consideration. However, in the course of carrying out the general public utility, the assessee can engage in incidental trade or business or provide services for consideration and can generate profits. If the receipts generated out of such incidental activities are within the quantified limits, the trusts are entitled to seek Income Tax Exemption.
Citation :
2022 Live Law (SC) 865
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FCS Deepak Pratap Singh
Published in LAW
Views : 1174
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