Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Violation of section 13 by a charitable trust does not require denial of exemption for its entire income. The notes explain that only income or property applied for the benefit of specified persons, including trustees, is taxable at the maximum marginal rate, while the balance remains eligible for exemption under section 11 subject to other statutory conditions. This position is supported by CBDT Circular No. 387 and the judicial authorities discussed. The assessment is therefore to be recomputed by restricting the denial of exemption to the value of any benefit conferred on trustees, rather than taxing the trust's entire income.
Violation of section 13 by a charitable trust does not require denial of exemption for its entire income. The notes explain that only income or property applied for the benefit of specified persons, including trustees, is taxable at the maximum marginal rate, while the balance remains eligible for exemption under section 11 subject to other statutory conditions. This position is supported by CBDT Circular No. 387 and the judicial authorities discussed. The assessment is therefore to be recomputed by restricting the denial of exemption to the value of any benefit conferred on trustees, rather than taxing the trust's entire income.
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