https://www.taxtmi.com/caselaws?id=328198 Whether interest on bank fixed deposits of a charitable trust constitutes taxable income under the proviso to s.2(15) or is exempt under s.11(5) read with s.13. The Tribunal held depositing surplus funds in banks is not trade or business; construing the proviso to s.2(15) to tax such interest would negate the statutory mandate of s.11(5)/s.13 requiring specified investments for charitable institutions, a contradiction avoided by rejecting that interpretation. Outcome: interest on FDs complying with s.11(5) is exempt; proviso to s.2(15) does not apply and the AO's addition is deleted. en-us Mon, 29 Feb 2016 00:00:00 +0530 Thu, 15 Jan 2026 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=328198 Whether interest on bank fixed deposits of a charitable trust constitutes taxable income under the proviso to s.2(15) or is exempt under s.11(5) read with s.13. The Tribunal held depositing surplus funds in banks is not trade or business; construing the proviso to s.2(15) to tax such interest would negate the statutory mandate of s.11(5)/s.13 requiring specified investments for charitable institutions, a contradiction avoided by rejecting that interpretation. Outcome: interest on FDs complying with s.11(5) is exempt; proviso to s.2(15) does not apply and the AO's addition is deleted. Case-Laws Income Tax Mon, 29 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=328198