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Showing contexts for: charitable trust objects in Hyderabad Runners Society, ... vs Assessee on 4 October, 2012Matching Fragments
21. The voluntary contribution received by a trust created only for charitable or religious purposes is to be deemed as income u/s. 11 of the Act. In case some of the objects of the trust are charitable and some of the objects can be termed as non charitable then such a trust will not be covered u/s. 12 because then it is not a trust created wholly for charitable purposes. One has to go through the object clause of the trust deed and to see whether the activities carried on by the assessee are in the nature of charitable or not. As per the proviso to M/s. Hyderabad Runners Society ========================= section 2(15) of the Act an object of general public utility will not be a charitable purpose if it is involved carrying on of any activity in the nature of trade, commerce or business or any activity rendering any service in relation to any trade, commerce, business for a cess or fee or any other consideration, irrespective of nature of use or application of retention of the income from such activities. If the assessee carried on any activity in the nature of trade, commerce or business, the assessee cannot be termed as existing for the purpose of charitable or religious activities. As per proviso to section 2(15) if the object of the trust is advancement of any other object of general public utility then the activity of rendering any service in relation to trade, commerce or business will make such an object of general public utility as not qualifying for charitable purpose. If the assessee conducts marathon in a commercial manner, then the trust cannot be said to be existing only for charitable purposes in view of the amended definition of the charitable purpose w.e.f. 1.4.2008. In view of this the DIT(E) is directed to examine whether receipt of fees from marathon is incidental to charitable object of the assessee or it is the main activity of the assessee and decide thereupon. If the assessee falls under the purview of amended provision of section 2(15), then registration is not to be granted.