https://www.taxtmi.com/caselaws?id=5579 Exemption under section 11 requires income from property to be held under a trust or binding legal obligation requiring its exclusive or essential application to charitable purposes. Charitable objects alone do not satisfy this requirement where profits may lawfully be distributed as dividends to shareholders. Before the 1973 amendment, no legal restriction prevented dividend distribution, and stock-exchange recognition provisions or government advisory letters did not create such an obligation. The subsequent amendment operated prospectively. Accordingly, exemption under section 11 read with section 2(15) was unavailable for the relevant period. en-us Thu, 20 Mar 1997 00:00:00 +0530 Tue, 16 Dec 2025 14:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5579 Exemption under section 11 requires income from property to be held under a trust or binding legal obligation requiring its exclusive or essential application to charitable purposes. Charitable objects alone do not satisfy this requirement where profits may lawfully be distributed as dividends to shareholders. Before the 1973 amendment, no legal restriction prevented dividend distribution, and stock-exchange recognition provisions or government advisory letters did not create such an obligation. The subsequent amendment operated prospectively. Accordingly, exemption under section 11 read with section 2(15) was unavailable for the relevant period. Case-Laws Income Tax Thu, 20 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5579