1982 (7) TMI 30 - HC - Income Tax

Summary

The High Court of Madhya Pradesh considered an application under section 256(2) of the Income Tax Act regarding exemption granted to a public charitable trust under section 11. The Commissioner raised concerns about loans advanced by the trust and directed the Income Tax Officer to reexamine the exemption. The Appellate Tribunal upheld the exemption, leading to a question of law on whether thorough inquiries were made regarding section 13(1)(c) before granting the exemption. The High Court directed the Tribunal to refer this question for determination.