Exemption withdrawal for accumulated income not used as intended triggers taxation and deemed income consequences under trust rules. Where accumulated income is applied to non charitable purposes, ceases to be invested in permitted modes, is not utilised within the prescribed period, or is credited to specified registered entities, it is deemed the trust's income in the year of such event. The assessing officer may, on application and where circumstances beyond control prevent intended use, permit application for other purposes consistent with the trust's objects, but not by payment or credit to certain registered trusts or specified institutions; dissolution of entities holding permitted deposits permits transfer to registered trusts or specified funds.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exemption withdrawal for accumulated income not used as intended triggers taxation and deemed income consequences under trust rules.
Where accumulated income is applied to non charitable purposes, ceases to be invested in permitted modes, is not utilised within the prescribed period, or is credited to specified registered entities, it is deemed the trust's income in the year of such event. The assessing officer may, on application and where circumstances beyond control prevent intended use, permit application for other purposes consistent with the trust's objects, but not by payment or credit to certain registered trusts or specified institutions; dissolution of entities holding permitted deposits permits transfer to registered trusts or specified funds.
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