https://www.taxtmi.com/caselaws?id=776108 ITAT Chandigarh held that the assessee, a charitable educational trust, is entitled to exemption under Sections 11 and 12 of the IT Act. The AO failed to demonstrate any violation of the trust's objectives or justify denial of exemption in totality. Disallowances under Section 13(1)(c) related to honorarium and traveling expenses were deleted, as these were incurred for bona fide activities aligned with the trust's objectives. Accumulated funds not applied within five years were protected due to litigation restraining capital expansion. Disallowances of AMC expenses and notional interest were also set aside, recognizing preparatory activities as educational. Donation to a religious institution was held within permissible limits under Section 11. Depreciation disallowance was reversed, as the assessee's net expenditure exceeded income. All grounds of appeal were allowed, and the assessments were directed to be revised accordingly. en-us Tue, 15 Jul 2025 00:00:00 +0530 Tue, 05 Aug 2025 07:54:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776108 ITAT Chandigarh held that the assessee, a charitable educational trust, is entitled to exemption under Sections 11 and 12 of the IT Act. The AO failed to demonstrate any violation of the trust's objectives or justify denial of exemption in totality. Disallowances under Section 13(1)(c) related to honorarium and traveling expenses were deleted, as these were incurred for bona fide activities aligned with the trust's objectives. Accumulated funds not applied within five years were protected due to litigation restraining capital expansion. Disallowances of AMC expenses and notional interest were also set aside, recognizing preparatory activities as educational. Donation to a religious institution was held within permissible limits under Section 11. Depreciation disallowance was reversed, as the assessee's net expenditure exceeded income. All grounds of appeal were allowed, and the assessments were directed to be revised accordingly. Case-Laws Income Tax Tue, 15 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776108