Taxability of income of charitable institution/trust/fund

This query is : Resolved

BHAVESH CHAUHAN (Querist)
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13 April 2016 There is a unit of Police Kendriya Kalyan Samiti in the name of M/s Police Kalyan Petrol Pump, The samiti has been earning income from petrol pump. I want to know the section which will be applicable to the samiti for exemption from income tax, i.e. whether section 10(23AA), 10(23AAA), or any other section would be applicable to the same.

Amol S Joglekar

Amol S Joglekar (Expert)
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13 April 2016 The income is TAXABLE. Why do you think that the income from petrol pump is EXEMPT?

BHAVESH CHAUHAN

BHAVESH CHAUHAN (Querist)
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14 April 2016 As the Police Kendriya Kalyan Samiti is a Charitable Trust formed for the welfare and overall development of police employees and their families, on this basis I think that the income is EXEMPT from tax.

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BHAVESH CHAUHAN

BHAVESH CHAUHAN (Querist)
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14 April 2016 Please give your views sir.

Amol S Joglekar

Amol S Joglekar (Expert)
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14 April 2016 See, for the time being, let us accept that the reason put forth by you viz. PKKS is a charitable trust formed for the welfare and overall development of police employees and their families. Ok? But then why the income earned by the trust by running a commercial activity viz running a petrol pump should be exempt?
AND IF THAT BE THE CASE, everyone on this earth would have done the same thing....form a trust, run a business for the welfare and overall development of certain class of people say, lawyers, doctors, engineers, IAS officers, BSF, mill workers and so on so forth.... and income will be exempt? Right? What do you say?