Denial of exemption u/s 11 would be restricted to amount in violation of provision of section 13

IILM Foundation Vs Asst. Director of Income Tax (Exemption) (ITAT Delhi) Conclusion: Where there was violation of the provision of section 13, the entire exemption under section 11 would not be denied instead expenditure which could not be treated as application of income and in violation under section 13, same should alone be disallowed. Held: Assessee was a charitable trust duly registered under section 12A. It was running certain educational institutions. AO in his order had alleged the following issues firstly, remuneration paid to Mrs. Malavika Rai in violation of section 13(1)(C) read wi...