Commercial Activities by Trust registered u/s 12AB

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....ommercial Activities by Trust registered u/s 12AB<br> Query (Issue) Started By: - Mratunjaya Vajramatti Dated:- 30-1-2024 Last Reply Date:- 5-2-2024 Income Tax<br>Got 5 Replies<br>Income Tax<br>Dear sir/madam A trust registered u/s 12AB running an ayurvedic college and a teaching hospital under it. Teaching hospital gives services and also sells drugs to inpatients. Suppose Trust plans to opens....

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.... a medical shop within the premises of college and to extend sale of drugs and other pharmaceutical products to outsiders. can a trust do that?? Reply By Padmanathan Kollengode: The Reply: What are the main objects of the trust? Reply By Padmanathan Kollengode: The Reply: Pls note that the restriction on commercial activity being &quot;charitable purpose&quot; is only for the object being &quo....

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....t;the advancement of any other object of general public utility&quot;. Reply By Mratunjaya Vajramatti: The Reply: Main objective of Trust is Providing Education. It has 75 educational institutions. Reply By Padmanathan Kollengode: The Reply: If the main objective of the trust is imparting education, there is no restriction on commercial activity for falling under &quot;charitable purpose&quot....

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....;. However, pls note the ratio laid down by Hon&#39;ble SC in M/S NEW NOBLE EDUCATIONAL SOCIETY VERSUS THE CHIEF COMMISSIONER OF INCOME TAX 1 AND ANR. 2022 (10) TMI 855 - SUPREME COURT is also relevant. Reply By Manoj Gupta: The Reply: A lot to be checked before deciding the query, in particular, the objects clause.<br> Discussion Forum - Knowledge Sharing ....