Donor-directed corpus contributions retain capital character despite exemption claims under section 10(23C)(vi), preventing their treatment as taxable...
Enhanced tax-audit threshold applies where banking records establish compliant non-cash receipts and payments, eliminating penalty exposure for audit ...
Transfer pricing consistency protects identical non-interest-bearing debenture terms from a later notional-interest adjustment without valid statutory...
Rectification of debatable deduction claims cannot reverse scrutiny-approved co-operative society interest income deductions as apparent record errors...
Cash-method accounting bars presumptive interest taxation, while unsupported securities and share-trading additions require reliable material and veri...
The ITAT held that corpus donations received by a public charitable trust, already registered under section 12AA, could not be disallowed where the Assessing Officer had not disputed their character or the exemption claimed under section 11(1)(d). It treated the corpus donation as a capital receipt and found the addition unjustified because the existing registration had been ignored by the tax authorities. The Tribunal also held that tax could not be computed at the maximum marginal rate of 30 per cent and that the applicable slab rate for the trust had to be applied. The appeal was allowed and the consequential tax computation was directed to be corrected.
The ITAT held that corpus donations received by a public charitable trust, already registered under section 12AA, could not be disallowed where the Assessing Officer had not disputed their character or the exemption claimed under section 11(1)(d). It treated the corpus donation as a capital receipt and found the addition unjustified because the existing registration had been ignored by the tax authorities. The Tribunal also held that tax could not be computed at the maximum marginal rate of 30 per cent and that the applicable slab rate for the trust had to be applied. The appeal was allowed and the consequential tax computation was directed to be corrected.
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