The Supreme Court held that a general public utility (GPU) cannot engage in any trade or commercial activity if it wants to claim income tax exemptions available to organisations doing charitable work.
However, statutory corporations, boards, authorities, commissions, etc, in the housing development, town planning, industrial development sectors with objects of GPU are entitled to be considered as charities in the GPU categories for taxation purpose, even when they are involved or engaged in activities in the nature of trade, commerce or business, it added.
