https://www.taxtmi.com/caselaws?id=754804 ITAT Ranchi ruled that AO cannot deny exemption under sections 11-12 to a trust for alleged FCRA 2010 violations. The tribunal held that section 13 does not empower AO to deny exemption entirely; only proportionate expenses violating section 13(1) can be disallowed from application of income. Citing precedents from Karnataka HC, the tribunal emphasized that exemption benefits cannot be denied while section 12A certificate remains valid. The AO was directed to allow the trust's exemption claim and assess only non-compliant expenditure as taxable income. Appeal partly allowed. en-us Wed, 07 Feb 2024 00:00:00 +0530 Sat, 29 Jun 2024 12:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754804 ITAT Ranchi ruled that AO cannot deny exemption under sections 11-12 to a trust for alleged FCRA 2010 violations. The tribunal held that section 13 does not empower AO to deny exemption entirely; only proportionate expenses violating section 13(1) can be disallowed from application of income. Citing precedents from Karnataka HC, the tribunal emphasized that exemption benefits cannot be denied while section 12A certificate remains valid. The AO was directed to allow the trust's exemption claim and assess only non-compliant expenditure as taxable income. Appeal partly allowed. Case-Laws Income Tax Wed, 07 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754804