Commercial Activity; ITAT Denies Section Exemption To Trust Running Hostels For Non-Students

ITAT denied tax exemption under Income Tax provisions to a trust operating hostels for non-students, ruling that the activity is commercial. The decision clarifies the scope of charitable exemption, emphasizing that tax benefits apply only to genuine charitable activities, not commercial undertakings. The judgment impacts trusts, educational institutions, and regulators in defining eligible activities for tax benefits under the Income Tax Act.