Gratuity and Leave Provisions Qualify as Application of Income under Section 11: ITAT Mumbai

ACIT Vs Anandilal & Ganesh Podar Society (ITAT Mumbai) The appeal was filed by the Revenue against the order dated 17.03.2025 passed by the Commissioner of Income Tax (Appeals)-47, Mumbai, relating to Assessment Year 2015-16. The primary issue was whether provisions made for gratuity and leave encashment by a charitable trust registered under Section 12A and claiming exemption under Section 11 of the Income-tax Act, 1961 could be treated as application of income. The assessee, engaged solely in educational activities and running schools, filed its return declaring nil income after claiming...