Income-tax is a welfare legislation for it provides exemptions to charitable trusts etc.
However all said and done charity and luxury cannot go hand in hand in as much as in
(2023] 31 ITR (Trib)-OL 685 (ITAT[Pune) the trust lost on its exemption having utilised funds for purchase of Mercedes Benz for the trustee secretary use.
In this case the assessee failed to prove that the vehicle was used for furtherance of any charitable activity.
Never should a charitable entity purchase luxury cars in their course of rendering charitable activities else it may risk its exemption.
