Income received from a charitable/religious trust will be tax-exempt under Section 11, provided that the activity being performed is incidental to the attainment of objectives set by the trust/institution, and separate books of account are maintained by the particular trust/institution pertaining to the business. In this article, we look at some of the major exemptions provided under Section 11 of the Income Tax Act.
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The tribunal held that indexed cost of acquisition must be allowed while computing LTCG of a charitable trust. Indexation under Section 48 applies even when gains are treated as application of income under Section 11(1A).
The Revenue challenged the appellate authoritys decision to remand an ex-parte order. The Tribunal ruled that the remand was lawful and well within statutory appellate powers.
The ruling clarifies that denial of charitable exemption for delayed Form 10B goes beyond Section 143(1). If verification is needed, it cannot be resolved through mechanical processing adjustments.
Income earned from sanitation, gardening, and waste management contracts was treated as charitable. The tribunal held such receipts furthered environmental objects under Section 2(15).
While following binding High Court precedent on limitation, the Tribunal quashed the assessment order. Liberty was granted to revive the matter depending on the Supreme Court’s final decision.
The dispute concerned denial of exemption on the ground of alleged business activity. The Tribunal held that once registration under Section 12AA stood restored, exemption under Sections 11 and 12 could not be denied.
The Tribunal reiterated that procedural delays in uploading Form 10B should not defeat substantive tax exemptions available to charitable trusts. Denial of Section 11 relief merely due to late filing was held to be unjustified where charitable activities were undisputed.
The case addressed whether exemption could be disallowed through prima facie adjustment under section 143(1). The Tribunal held such denial impermissible and ordered fresh consideration.
The Tribunal emphasized that exemption cannot be denied on assumptions. It restored the case to the AO for limited verification, reinforcing evidence-based assessment by the Income Tax Appellate Tribunal.
The Tribunal held that an appeal should not be rejected merely due to long delay when sufficient cause is shown. It ruled that technicalities cannot defeat substantial justice and restored the matter for decision on merits.
