Court Restraint Excuses Non-Utilisation of Accumulated Funds by Charitable Society: ITAT Delhi

DCIT (Exemption) Vs Ishan Educational Research Society (ITAT Delhi) Injunction Protects Charity Funds: ITAT Quashes Reopening and Upholds Set-off of Excess Application The Delhi Bench of the Income Tax Appellate Tribunal dismissed the Revenue’s appeal and allowed the assessee’s cross-objection, holding that unutilised accumulated funds of a charitable society cannot be taxed when non-utilisation is due to circumstances beyond the assessee’s control and when set-off of earlier years’ excess application is available. In this case, the assessee–society had accumulated funds in AY 2009-1...