https://www.taxtmi.com/caselaws?id=6104 SC held that the Tribunal's acceptance of the assessee's oral account was perverse and affirmed the AO and appellate authority. The assessee, a non-profit company limited by guarantee, lent Rs. 70 lakhs to a founder without interest or adequate security during relevant years; this conduct falls within the mischief of s.13(3)(a) read with s.13(1)(c)(ii), causing loss of exemption under s.11. The Court interpreted "founder" in ordinary parlance to include subscribers who caused the company's incorporation, rejecting the assessee's contention to the contrary. en-us Mon, 16 Dec 2002 00:00:00 +0530 Wed, 05 Nov 2025 18:23:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6104 SC held that the Tribunal's acceptance of the assessee's oral account was perverse and affirmed the AO and appellate authority. The assessee, a non-profit company limited by guarantee, lent Rs. 70 lakhs to a founder without interest or adequate security during relevant years; this conduct falls within the mischief of s.13(3)(a) read with s.13(1)(c)(ii), causing loss of exemption under s.11. The Court interpreted "founder" in ordinary parlance to include subscribers who caused the company's incorporation, rejecting the assessee's contention to the contrary. Case-Laws Income Tax Mon, 16 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6104