Breaking News: SC pronounces landmark judgment, explains “general public utility” vis-a-vis Charitable Institutions

SC, in a landmark ruling, in the context of “advancement of general public utility”, holds that any body which involves in “trade or commerce” and charges over and above cost, would cease to be a Charitable Institution for the purpose of Income tax Act; When services are provided at cost or nominal basis, the same will not constitute “trade or commerce” but not when charges are markedly above cost; Three judges bench, while pronouncing the verdict, remarks that they have comprehensively dealt with each category of cases involving Development Authorities, Cricket Associations, Trusts and other similarly situated assessees; In a second batch of appeals, concerning educational institutions, Apex Court holds that the object of such institutions must be “wholly, solely and exclusively” for the purpose of education; SC rules that if educational institutions are making profits and gains and run for that purpose, then the benefit u/s Sec.10(23C) of Income Tax Act will not be extended to such institutions; SC disposes of the batch by dismissing several Revenue & Assessee appeals respectively.