Navigating the Thin Line Between Charity and Commerce: Amendment of Trust Deed and Compliance with Section 13(1)(c)

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..... by the Karnataka High Court, dealt with complex issues concerning the registration of a trust under Section 12AA of the Income Tax Act . The judgment explored whether the activities of the trust deviated from its charitable objectives and whether such deviations justified the cancellation of its tax-exempt status. Background The trust, engaged in running various educational institutions, .....

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..... Commercialization and Public Policy: The charge of commercialization, including the collection of high fees and the provision of luxury vehicles to trustees, was scrutinized. The Court had to balance the need for financial sustainability of educational institutions against the principles of public policy​​. Prior rulings, such as in the case of Vanita Vishram Trus .....

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..... e Tax (Exemptions)'s decision to cancel the registration under Section 12AA(3) was justified. The Tribunal s decision, which found the reasons for cancellation under Section 12AA(3) to be invalid, was upheld by the Court. The Court agreed that the trust's activities, despite some shortcomings, did not amount to a lack of genuineness or a deviation from its objectives​​. .....

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