Inter-Charity Donations is Valid Application of Income: ITAT Delhi

ITO Vs Prakash Sewa Trust (ITAT Delhi) Inter-Charity Donation Is Valid Application of Income: ITAT Upholds Section 11 Exemption on Sale of Trust Property The Delhi Bench ‘F’ of the ITAT, in ITO (Exemptions) v. Prakash Sewa Trust (AY 2016-17), dismissed the Revenue’s appeal and upheld the order of the CIT(A) granting exemption under sections 11 and 12 to a charitable trust, despite the trust having sold its land for ₹2.60 crore and donated the entire sale proceeds to other charitable trusts. The AO had denied exemption on multiple grounds—namely, that the assessee had not carried out ...