The HC upheld the ITAT's order allowing the assessee's claim for ...

Exemption Under Sections 11 and 12 Upheld: Funds Deployed for Regulatory Obligations Not Considered "Investment" Under Section 11(5)

March 25, 2025

Case Laws Income Tax HC

The HC upheld the ITAT's order allowing the assessee's claim for exemption under sections 11 and 12. Following its earlier decision in Indian Broadcasting Foundation [2025 (3) TMI 1124], the Court held that the application of funds in BARC did not qualify as "investment" under section 11(5) read with section 13(1)(d) of the Act. The Court determined that the deployment of funds was not intended to yield income, profit, or return, but was made pursuant to a statutory and regulatory obligation to further the assessee's charitable objectives. The questions of law were answered in favor of the assessee and against the Revenue, with the HC finding no infirmity in the ITAT's order.

View Source

← Previous Next →

The HC upheld the ITAT's order allowing the assessee's claim for ...

Exemption Under Sections 11 and 12 Upheld: Funds Deployed for Regulatory Obligations Not Considered "Investment" Under Section 11(5)

March 25, 2025

Case Laws Income Tax HC

You may also like:

Exemption u/s 11 - status of the assessee trust - The assessee trust is irrevocable trust which is duly registered under section 12A and thus, eligible for exemption u/s...

Exemption u/s 11 - Violation of section 13 - Surplus fund not applied for charitable purpose - accumulation of funds - AO directed to o grant exemption to the assessee...

The Appellate Tribunal considered whether the assessee, a trust registered u/s 12AA, qualified for exemption u/s 11 as a charitable entity. The AO argued the trust's...

ITAT denied exemption under sections 11 and 12 for voluntary contributions received by the assessee. The tribunal found no evidence demonstrating that donations were...

The HC ruled that the Assessee's purchase of shares in BARC, a Section 25 company (non-profit), did not constitute an "investment" under Sections 11(5) and 13(1)(d) of...

The assessee being entitled to exemption under sections 11 and 12 of the Act, no disallowance on account of contribution to unapproved pension and gratuity funds can be made - AT

Benefit of exemption u/s 11/12 - Effective date of grant of registration u/s 12A - Initially application was rejected by CIT(E), but the same was approval on the...

The ITAT upheld the denial of registration u/s 12AB to the Trust, as its objects were exclusively for the Jain Community, violating Section 13(1)(b) read with the...

Eligibility for exemption u/s 11 - Section 2(15) and the corresponding sections including Sections 11, 12, 12A and 12AA are independent of Section 10(20A) of the Act....

Rejection of Revision application u/s 264 - Exemption u/s 11 denied to assessee - benefits denied merely on the ground that the donor has deducted TDS u/s 194C and 194J...

Charitable entity u/s 2(15) denied exemption u/ss 11 and 12 by Assessing Officer (AO) on grounds of conducting exhibitions being commercial in nature. ITAT held no...

Charitable institution invested funds in shares of joint venture companies, violating Section 13(1)(d). Exemption u/s 11 denied for income from such investment. However,...

Revision u/s 263 - assessment of trust - donations given out of accumulated funds u/s. 11(2) of the Act of earlier previous years - The Tribunal noted the argument that...

Exemption u/s 11/12 - corpus donations - exemption to incomes of charitable trust - the investment in land had been made out of general donations, which fact has...

Exemption u/s 10(23C)(vi) denied - exemption u/s 11 and 12 denied - the exemption u/s 11 and 12 of the Act cannot be denied only on the basis of rejection of application...

Quick Updates: