Entire Exemption u/s 11 & 12 Cannot Be Denied to Trust for Advances to Related Parties

K.C. Social Welfare Trust Vs ACIT (Exemption) (ITAT Chandigarh) Violation of Sec.13 Triggers Tax on Benefit – But Charitable Exemption Cannot Be Denied in Full Assessee, a registered trust under s.12A & approved u/s 10(23C)(vi), was denied exemption by AO on ground that it had advanced interest-free loans to persons/entities covered u/s 13(3). AO treated this as violation & disallowed exemption, further taxing notional interest on such advances. CIT(A) confirmed AO’s action. Before Tribunal, it was argued that issue was identical to earlier year 2014-15 where Tribunal had already s...