|The Tax Publishers
Section 12AB--Registered trust--Society running School Bus--Effect of Supreme Court judgment in New Noble case
'X' is a registered society. It runs education institution exclusively. The gross receipt is less than 5 crores. It is registered under section 12AB and recognized under section 80G of the IT Act, 1961. The society runs bus facility for the exclusive benefit of students. The society charges bus fee to students. It also employs drivers and cleaning staff. At present, separate books are not kept in respect of bus. No depreciation is claimed on buses.
The repayment of bus loan is taken as application of income. Even charging of interest on loan is not taken as application. Only students have been transported and not given for public use.
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