Section 12ABRegistered trust Society running School BusEffect of Supreme Court judgment in New Noble case

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The Tax Publishers Section 12AB--Registered trust--Society running School Bus--Effect of Supreme Court judgment in New Noble case Query '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. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Section 12AB--Registered trust--Society running School Bus--Effect of Supreme Court judgment in New Noble case

Query

'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.