Application of business deduction rules to charitable trusts: limits on allowable applications and related-party expenditure now align with business principles. The amendment provides that, for determining the amount of application under clause (a) or clause (b) of sub-section (1) of section 11, the provisions equivalent to the disallowance rule in sub-clause (ia) of clause (a) of section 40 and the provisions corresponding to sub-sections (3) and (3A) of section 40A shall, mutatis mutandis, apply as they apply in computing income chargeable under the head profits and gains of business or profession.
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Provisions expressly mentioned in the judgment/order text.
Application of business deduction rules to charitable trusts: limits on allowable applications and related-party expenditure now align with business principles.
The amendment provides that, for determining the amount of application under clause (a) or clause (b) of sub-section (1) of section 11, the provisions equivalent to the disallowance rule in sub-clause (ia) of clause (a) of section 40 and the provisions corresponding to sub-sections (3) and (3A) of section 40A shall, mutatis mutandis, apply as they apply in computing income chargeable under the head profits and gains of business or profession.
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