Charitable trust donations preserve tax exemption when paid to other trusts for their charitable objects. Payments by a donor charitable trust to another trust for utilisation by the donee trust towards its charitable objects constitute a proper application of income by the donor and do not cause the donor trust to lose exemption under section 11 in the year of receipt, provided the payment is for the donee trust's charitable objects.
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Provisions expressly mentioned in the judgment/order text.
Charitable trust donations preserve tax exemption when paid to other trusts for their charitable objects.
Payments by a donor charitable trust to another trust for utilisation by the donee trust towards its charitable objects constitute a proper application of income by the donor and do not cause the donor trust to lose exemption under section 11 in the year of receipt, provided the payment is for the donee trust's charitable objects.
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