https://www.taxtmi.com/caselaws?id=785217 Issue 1 - Whether the trust's investment breached Sections 11(5) and 13: The tribunal found the investment was not in a mode permitted by s.11(5) and the recipient was a related party within s.13, so s.11 exemption is excluded by operation of s.13; legal basis: statutory bar in s.11(5) read with s.13(1)/(2). Outcome: exemption under s.11 disallowed and income is chargeable at the maximum marginal rate. Issue 2 - Whether the assessment was erroneous and prejudicial warranting revision under s.263: AO accepted the return without applying ss.11/13; legal basis: AO's incorrect application of law made the order erroneous and prejudicial. Outcome: Revision under s.263 was justified and decision rendered against the assessee. en-us Tue, 16 Dec 2025 00:00:00 +0530 Sat, 17 Jan 2026 12:21:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785217 Issue 1 - Whether the trust's investment breached Sections 11(5) and 13: The tribunal found the investment was not in a mode permitted by s.11(5) and the recipient was a related party within s.13, so s.11 exemption is excluded by operation of s.13; legal basis: statutory bar in s.11(5) read with s.13(1)/(2). Outcome: exemption under s.11 disallowed and income is chargeable at the maximum marginal rate. Issue 2 - Whether the assessment was erroneous and prejudicial warranting revision under s.263: AO accepted the return without applying ss.11/13; legal basis: AO's incorrect application of law made the order erroneous and prejudicial. Outcome: Revision under s.263 was justified and decision rendered against the assessee. Case-Laws Income Tax Tue, 16 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785217