https://www.taxtmi.com/caselaws?id=462673 ITAT Delhi ruled that a trust violated section 13(3) by paying 18% interest on unsecured loans from specified persons, resulting in complete loss of exemption under sections 11, 12, and 13. While the tribunal dismissed revenue's appeals regarding unsecured loan additions and contractor advances (finding these were legitimate construction-related payments, not prohibited investments under section 11(5)), it allowed the revenue's appeal on the section 13 violation. Following jurisdictional HC precedent, the tribunal held that any single violation of trust provisions results in loss of entire exemption, making the trust's surplus taxable under normal Income Tax Act provisions rather than trust-specific sections. en-us Tue, 23 May 2017 00:00:00 +0530 Wed, 09 Jul 2025 11:35:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462673 ITAT Delhi ruled that a trust violated section 13(3) by paying 18% interest on unsecured loans from specified persons, resulting in complete loss of exemption under sections 11, 12, and 13. While the tribunal dismissed revenue's appeals regarding unsecured loan additions and contractor advances (finding these were legitimate construction-related payments, not prohibited investments under section 11(5)), it allowed the revenue's appeal on the section 13 violation. Following jurisdictional HC precedent, the tribunal held that any single violation of trust provisions results in loss of entire exemption, making the trust's surplus taxable under normal Income Tax Act provisions rather than trust-specific sections. Case-Laws Income Tax Tue, 23 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462673