https://www.taxtmi.com/highlights?id=97255 Application of the rule excluding tax-exempt status where specified persons derive benefit must be read with the provision defining persons connected to the trust; here the signatories did not derive direct or indirect benefit from the sub-grant and the foreign university was not a connected person, so the provision invoking denial of exemption is not justified. On applicability of tax exemption for application of funds to charitable purposes, only assessment year 2010-11 showed under-application below the prescribed percentage, and the Assessing Officer is directed to restrict disallowance to the short application amount for that year. en-us Fri, 27 Feb 2026 13:23:36 +0530 Fri, 27 Feb 2026 13:23:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97255 Application of the rule excluding tax-exempt status where specified persons derive benefit must be read with the provision defining persons connected to the trust; here the signatories did not derive direct or indirect benefit from the sub-grant and the foreign university was not a connected person, so the provision invoking denial of exemption is not justified. On applicability of tax exemption for application of funds to charitable purposes, only assessment year 2010-11 showed under-application below the prescribed percentage, and the Assessing Officer is directed to restrict disallowance to the short application amount for that year. Highlights Income Tax Fri, 27 Feb 2026 13:23:36 +0530 https://www.taxtmi.com/highlights?id=97255