ITAT addressed exemption under Section 11 for a public ...

Charitable Trust Wins Tax Exemption: Devotional Sales Do Not Negate Nonprofit Status Under Section 11

April 25, 2025

Case Laws Income Tax AT

ITAT addressed exemption under Section 11 for a public charitable trust. The tribunal examined whether sale of devotional articles constitutes a business activity disqualifying tax exemption. Despite revenue's argument that surplus income from sales negates exemption, ITAT found the trust's primary activities remained charitable, including feeding poor, providing education, and medical relief. The tribunal noted majority of income derived from donations and interest. Referencing SC precedent, ITAT determined sales at nominal cost do not automatically transform charitable activities into business. Administrative expenses and overall charitable objectives were considered. CIT(A)'s original exemption was upheld, and revenue's appeal was dismissed.

View Source

← Previous Next →

ITAT addressed exemption under Section 11 for a public ...

Charitable Trust Wins Tax Exemption: Devotional Sales Do Not Negate Nonprofit Status Under Section 11

April 25, 2025

Case Laws Income Tax AT

You may also like:

The HC quashed the order denying renewal of tax exemption u/s 80G to the petitioner-Trust. It held that the Trust's arrangement with doctors to use its premises for...

This case deals with the tax liability u/s 115BBC(1) for anonymous donations received in the "Hundi" by a charitable and religious trust. The key points are: The...

ITAT determined that a registered charitable trust's income should be taxed at normal rates rather than maximum marginal rates, despite undefined trustee shares. While...

Exemption u/s 11 - registration u/s 12A withdrawn - the donee trust will treat the donation as towards its corpus and can only utilise the accruing income from the...

The ITAT ruled in favor of the assessee trust operating a hospital, holding that income from its pharmacy operations qualifies for exemption under Section 11. The...

Exemption u/s 11 - On lifting the veil, it is clear as daylight that the modus operandi adopted by the Assessee Institutions and Trusts are with the twin objectives of...

Exemption u/s 11 - assessee is a Charitable Trust registered u/s. 12A - The Tribunal found that the trust, despite being primarily focused on its members, was engaged in...

Non-profit organization registered u/s 12AA of Income Tax Act, 1961 - alleged violation of Finance Act and Service Tax Rules - applicability of mega exemption...

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...

The appellant Trust's application for registration u/s 12A was rejected by the Commissioner of Income Tax (Exemptions) on the grounds that its activities were not...

Exemption u/s 11 - Charitable activity u/s 2(15) - Commercial activity - Citing past decisions favorable to the trust under similar assessments, the Tribunal reiterated...

Registration u/s 12AA - proof of charitable activities - treatment as registered trust - receipt of land as Donation - the objects of the assessee trust being charitable...

ITAT determined that the PCIT erroneously cancelled charitable trust registrations under section 12A without express statutory authority. The tribunal found no evidence...

The appellant trust claimed to be formed for public charitable activities and registered under the Rajasthan Public Trust Act 1959, regularly filing its income tax...

The charitable trust will not lose its exemption u/s 11, if it passes some money to another charitable trust, for utilisation by the donee trust towards its charitable...

Quick Updates: