INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Assessee did not apply 85% of the income/receipt on charitable purposes -

Assessee filed appeal against the order of AO who held that since 85% of the income for the year under consideration was not applied by the assessee for charitable purpose, assessee was not entitled to exemption under section 11. Held: It was apparent from the assessment order, dt. 13-2-2014 that the assessee did not disclose fully and truly the very material fact that assesse had not applied 85% of the income/receipts of the year for charitable purposes which was a pre-condition for grant of exemption under section 11. Hence, action of AO denying exemption under section 11 could not be held as unjustified.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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