https://www.taxtmi.com/caselaws?id=767738 Delhi HC held that a charitable trust's purchase of shares in BARC, a Section 25 company and 100% subsidiary, did not constitute "investment" under Section 11(5) read with Section 13(1)(d) of the Income Tax Act. The court ruled that since BARC was legally prohibited from distributing dividends and any surplus upon liquidation would transfer to another charitable entity, the deployment of funds lacked the essential feature of investment - intention to earn return or profit. The transaction was made to fulfill statutory obligations and charitable objectives, not for income generation. Consequently, the trust's exemption under Sections 11 and 12 was upheld, deciding against the revenue department. en-us Thu, 20 Mar 2025 00:00:00 +0530 Wed, 09 Jul 2025 17:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767738 Delhi HC held that a charitable trust's purchase of shares in BARC, a Section 25 company and 100% subsidiary, did not constitute "investment" under Section 11(5) read with Section 13(1)(d) of the Income Tax Act. The court ruled that since BARC was legally prohibited from distributing dividends and any surplus upon liquidation would transfer to another charitable entity, the deployment of funds lacked the essential feature of investment - intention to earn return or profit. The transaction was made to fulfill statutory obligations and charitable objectives, not for income generation. Consequently, the trust's exemption under Sections 11 and 12 was upheld, deciding against the revenue department. Case-Laws Income Tax Thu, 20 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767738