Exemption u/s 11 Allowed – Lease to Group Concern not hit by s.13(3); Notional Rent & Denial of Exemption Unsustainable

DCIT (Exemption) Vs Aditya Birla Foundation (ITAT Mumbai) Exemption u/s 11 Allowed – Lease to Group Concern not hit by s.13(3); Notional Rent & Denial of Exemption Unsustainable The ITAT Mumbai dismissed Revenue’s appeals for AY 2016-17 & 2017-18 and confirmed the CIT(A)’s order granting exemption u/s 11 to Aditya Birla Foundation. The AO had denied exemption alleging violation of s.13(1)(c) r.w.s.13(2)(a)/(b) on the basis that the trust leased its hospital building and staff quarters to Aditya Birla Health Services Ltd., allegedly a related concern, at inadequate rent. Relyi...