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.
Income Tax : Courts held that prior exemption claims under Sections 11 and 12 cannot justify denial of 80G approval. The key takeaway is that b...
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CA, CS, CMA, Income Tax : We have not noticed any heed being extended towards various issues and possible solutions we have proposed through those represent...
Income Tax : The Tribunal condoned a 60-day delay after accepting explanations relating to migration of the ITAT portal and the death of a fami...
Income Tax : The Tribunal ruled that corpus donations cannot be taxed merely because Section 12AA registration was granted subsequently. Once r...
Income Tax : The Mumbai ITAT held that the appellate authority failed to consider pending writ petitions and interim directions of the Bombay H...
Income Tax : The ITAT Chennai held that exemption under Section 11 cannot be denied merely because Form 10B was not filed along with the return...
Income Tax : Bombay High Court held that delay in filing Form No. 10 for claiming accumulation under Section 11(2) should be condoned where gen...
Income Tax : CBDT extends deadline for trusts and institutions to submit audit reports in Form 10B/10BB until November 10, 2024....
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Corporate Law : Section 11 of the Special Economic Zones Act, 2005 – Development Commissioner – Rescission of all previous notifications appoi...
Bombay High Court held that delay in filing of Form No. 10 was condoned since activities of trust are genuine and denial of benefit of accumulation u/s. 11(2) due to delay in Form No. 10 would cause genuine hardship.
The ITAT Delhi ruled that the surcharge rate on the residual income of a trust must be restricted to 15%, not 37%. This decision follows the principle that the surcharge rate is governed by the Finance Act provisions, even if the base tax rate is the Maximum Marginal Rate (MMR).
ITAT Jaipur held that denial of Section 11 exemption solely due to non-furnishing of the registration certificate under Section 12A is invalid where 80G approval exists, since 80G presupposes valid 12AA registration.
The ITAT Kolkata restored Section 12A registration and Section 11 exemption to the Chamber of Commerce, holding that its objects and activities are charitable in nature, similar to the Indian Chamber of Commerce. The Tribunal applied the rule of consistency, noting the Chamber’s registration was already granted for subsequent assessment years.
The ITAT Mumbai deleted an addition of Rs.1.74 crore, ruling that corpus donations received by a registered charitable trust with specific written directions (for a “building fund”) are exempt under Section 11(1)(d). The ruling confirms that the exemption applies regardless of whether charitable activities were carried out in the same year.
The ITAT Delhi affirmed the grant of Section 11 exemption to a charitable society, ruling that if the Assessing Officer fails to make a mandatory reference to the DVO to question a valuation, the registered valuer’s report must be accepted. Since the purchase price was lower than the valuer’s estimate, no benefit accrued to related persons.
The ITAT Chennai restored a trust’s appeal to the AO to verify if the asset’s cost was allowed as application of income before disallowing depreciation under Section 11(6) of the Income Tax Act.
ITAT Delhi confirmed that a statutory development authority’s activities, such as land development and housing, are charitable under Section 2(15), not commercial. The Tribunal applied the principle of consistency, relying on multiple High Court and ITAT precedents for similar development bodies.
Tribunal held that charitable or religious trusts that have surrendered their registration and do not claim benefits under Section 11 are to be taxed at normal slab rates applicable to AOPs, not at the maximum marginal rate. The ruling relied on CBDT Circular No. 320 of 1982.
ITAT Mumbai sets aside CIT(E) order, holding Mohanji Bharat Welfare Foundation’s 80G registration application was timely, interpreting the six-month deadline from provisional approval expiry.
