https://www.taxtmi.com/caselaws?id=183162 An advance paid by a charitable trust for purchase of land to be used for its objects was treated as application of income for charitable purposes under section 11. The payment was supported by an irrevocable power of attorney, acknowledgment of receipt, and delivery of possession, showing a genuine acquisition of property rather than mere parking of funds with a third party. The principle that application of income may include capital expenditure applied here, and acquisition of a capital asset for carrying out the trust's objects fell within that scope. The disallowance was therefore deleted and the claim allowed. en-us Fri, 12 Mar 2010 00:00:00 +0530 Tue, 31 May 2016 11:34:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183162 An advance paid by a charitable trust for purchase of land to be used for its objects was treated as application of income for charitable purposes under section 11. The payment was supported by an irrevocable power of attorney, acknowledgment of receipt, and delivery of possession, showing a genuine acquisition of property rather than mere parking of funds with a third party. The principle that application of income may include capital expenditure applied here, and acquisition of a capital asset for carrying out the trust's objects fell within that scope. The disallowance was therefore deleted and the claim allowed. Case-Laws Income Tax Fri, 12 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183162