https://www.taxtmi.com/caselaws?id=796685 Section 13(1)(c), read with sections 13(2)(a) and 13(3), restricts the section 11 exemption only to trust income or property applied for the benefit of specified persons, including trustees. Where loans or advances to trustees constitute a violation, tax at the maximum marginal rate applies only to the income or benefit that enures to those persons; the remaining charitable income continues to qualify for exemption, subject to other statutory conditions. CBDT Circular No. 387 supports this limited denial approach, while Circular No. 5P and the Bharat Diamond Bourse decision do not require forfeiture of exemption for the trust's entire income. en-us Tue, 04 Aug 2026 00:00:00 +0530 Sat, 08 Aug 2026 08:32:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796685 Section 13(1)(c), read with sections 13(2)(a) and 13(3), restricts the section 11 exemption only to trust income or property applied for the benefit of specified persons, including trustees. Where loans or advances to trustees constitute a violation, tax at the maximum marginal rate applies only to the income or benefit that enures to those persons; the remaining charitable income continues to qualify for exemption, subject to other statutory conditions. CBDT Circular No. 387 supports this limited denial approach, while Circular No. 5P and the Bharat Diamond Bourse decision do not require forfeiture of exemption for the trust's entire income. Case-Laws Income Tax Tue, 04 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796685