As I write this message, rejuvenated after a short break for the Diwali holidays, my mind is looking for some positive feed to look forward to one more festive year to feast on. While I do find some, what completely unsettles me are the two news items that perhaps reflect mindsets of the eco system we live in. Let me share them with you.
First is the Supreme Court landmark judgement explaining General Public Utility
vis-a-vis Charitable Institutions. The landmark ruling, in the context of “advancement of general public utility”, holds that anybody involved in “trade or commerce” and charges markedly over and above cost would cease to be a Charitable Institution for the purpose of the Income-tax Act. Apart from Trusts, Cricket Associations and Development Authorities, the Supreme Court has held the same ratio would also apply in the case of educational institutions. The import of section 10(23C) as per the Hon. Supreme Court is that the word “Solely” should be interpreted narrowly to mean only the “Primary” purpose, not allied purposes or activities. The decision would hit various educational institutions, hospitals, trade organisations, maritime boards, sports organisations etc., which are formed to render services in their respective fields to their members for a cess or fee. The Supreme Court decision is mainly in the context of full exemption claimed u/s 10(23C).
With due respect to the Apex Court, I must express my
