Surplus funds of charitable institution can be used only for charitable activity

ACIT Vs K.C. Social Welfare Trust (ITAT Chandigarh)

ITAT Chandigarh held that surplus funds of a charitable institution are being held in a fiduciary capacity hence can never be used for any other purpose except for charitable activity. Accordingly, matter remanded back to AO for fresh adjudication.

Facts- The assessee is a charitable institution imparting educations in the faculties of Engineering, Management and computer applications. AO concluded that a sum of Rs.37,57,15,731/- is not covered under the objects of the assessee because it was advanced witho

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