https://www.taxtmi.com/caselaws?id=754442 ITAT Cochin allowed the appeal of a charitable trust regarding exemption under section 11. The trust failed to apply any income for charitable purposes during the relevant year. The tribunal held that without exercising the option to accumulate income, the trust must apply 85% of property income for charitable purposes, limiting taxable income to 85% of total income (Rs. 87,430). Additionally, the tribunal ruled that section 167B (maximum marginal tax rate) was wrongly applied, as it only applies when beneficiary shares are unknown. For charitable trusts as public bodies, normal Association of Persons tax rates apply, not maximum marginal rates. en-us Thu, 29 Feb 2024 00:00:00 +0530 Mon, 24 Jun 2024 12:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754442 ITAT Cochin allowed the appeal of a charitable trust regarding exemption under section 11. The trust failed to apply any income for charitable purposes during the relevant year. The tribunal held that without exercising the option to accumulate income, the trust must apply 85% of property income for charitable purposes, limiting taxable income to 85% of total income (Rs. 87,430). Additionally, the tribunal ruled that section 167B (maximum marginal tax rate) was wrongly applied, as it only applies when beneficiary shares are unknown. For charitable trusts as public bodies, normal Association of Persons tax rates apply, not maximum marginal rates. Case-Laws Income Tax Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754442