https://www.taxtmi.com/caselaws?id=35738 The Madras High Court held that a trust could not claim exemption under section 11 on the pleaded basis because the accumulated income was not invested in Government securities as required by section 11(2). It also held that section 11(1)(a) did not help the assessee, because mere acquisition of property by adjusting a debt or converting one asset into another is not application of income to charitable purposes in India. The purchase was therefore not treated as expenditure on the objects of the trust, and the answer to the referred question was against the assessee. en-us Tue, 13 Nov 1979 00:00:00 +0530 Tue, 16 Mar 2010 13:40:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35738 The Madras High Court held that a trust could not claim exemption under section 11 on the pleaded basis because the accumulated income was not invested in Government securities as required by section 11(2). It also held that section 11(1)(a) did not help the assessee, because mere acquisition of property by adjusting a debt or converting one asset into another is not application of income to charitable purposes in India. The purchase was therefore not treated as expenditure on the objects of the trust, and the answer to the referred question was against the assessee. Case-Laws Income Tax Tue, 13 Nov 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35738