Surplus income from hostel fee cannot be treated as profit of Trust running Dental College

Daya Nand Pushpa Devi Vs ACIT (Allahabad High Court) Any interpretation or meaning given to the word ‘business’ in the literal parlance cannot be read into the Income Tax Act as the word ‘business’ has been defined in the Act itself. The Court has to read the statute namely the Income Tax Act to find out as to whether the activity of the assessee in maintaining the hostel would be exempted under Section 11(1) of the Act and whether the provisions of Section 11(4A) would be attracted in the facts and circumstances of the case. Having held that the activity of running the...