Denial of exemption u/s 11 was challenged due to alleged ...

Trust's exemption upheld; bonus shares & pre-1983 holdings exempted u/s 13(1)(d), trustees didn't violate voting power limits, payments were for services.

Case Laws Income Tax

October 19, 2024

Denial of exemption u/s 11 was challenged due to alleged violations of Sections 13(1)(d), 13(2)(h), and 13(1)(c) of the Income Tax Act. The key points are: Section 13(1)(d) was held inapplicable as the assessee's holdings mainly consisted of bonus shares and acquisitions before 1983, covered by an exception. Section 13(2)(h) was inapplicable as no trustee held more than 20% voting power in the company. Section 13(1)(c) was wrongly invoked as payments received by trustees were for past services, not application of trust income. The assessee was not engaged in business u/s 2(15) as it earned only dividends and donations, not business income. The right to nominate directors was to protect the trust's interests. Exemption u/s 11 was upheld, and the appeal was allowed.

View Source

← Previous Next →

Denial of exemption u/s 11 was challenged due to alleged ...

Trust's exemption upheld; bonus shares & pre-1983 holdings exempted u/s 13(1)(d), trustees didn't violate voting power limits, payments were for services.

Case Laws Income Tax

October 19, 2024

You may also like:

Exemption u/s 11 - trustees have used property then trust - violation of provision of Section 13(1)(c) and 13 (1)(d) - The residential premises of the assessee trust are...

Exemption u/s.10(23C)(vi) - payment of lease rent to trustees of the trust - ld. CIT(E) had stated that this payment of lease rent is in violation of provisions of...

Denying exemption u/s 11 - violation of Section 13(1)(c) - The breach of Section 13(1)(c) of the Act as alleged by the department is based on the remuneration paid to...

This summary concerns an appeal before the Income Tax Appellate Tribunal regarding violations of Sections 11 to 13 of the Income Tax Act by a trust. The key points are:...

The AO denied exemption u/s 11 to the assessee trust based on incriminating evidence of undisclosed income declared under PMGKY, systematic recovery of staff salaries,...

The interest free loan was given to another trust and the common trustee have no substantial interest in any of the trust. Therefore in the absence of any direct or...

Charitable trust was denied exemption u/ss 11 and 12 due to disallowance of salary/honorarium paid to trustees u/s 13(1)(c) read with Section 13(3) and 164(2), invoking...

The trust was denied registration u/s 12A/12AB by the Commissioner of Income Tax (Exemptions) on the ground that it was established for the benefit of a particular...

The Income Tax Appellate Tribunal (ITAT) held that the provisions of Section 13(1)(b) of the Income Tax Act can be invoked at the time of assessment, based on the...

The Appellate Tribunal reviewed the rejection of registration u/s 12AB due to alleged violation of section 13(1)(b) as trust's objects were not solely for "SUNNI MUSLIMS....

Benefit of exemption u/s 11 -assessee is holder of shares in violation of provisions of section 13(1)(d) - it is only the income from such investment or deposit which...

Exemption u/s. 11 - the payments made to the trustees - When the Trust is availing the services of these trustees and on account of the services rendered by them, there...

Section 11 exemption - Violation of Section 13(1)(d) regarding excess payment to sister trust disallowed. Honorarium paid to Ms. Meenakshi Sundaraja allowed based on...

Exemption u/s 11 - construction activity on the land belong to the trustee and used by the trust - whether application of income for the benefit of trustee u/s 13 (1)(c)...

This circular outlines the procedure for enabling T+2 trading of bonus shares, where T is the record date. Key points: Issuers to apply for in-principle approval within...

Quick Updates: