Caselaws for non consideration of exemption u/s 11
This query is : Resolved
05 July 2025
caselaws for non consideration of exemption u/s 11
12 August 2025
1. CIT vs. Andhra Chamber of Commerce (1965) 56 ITR 745 (SC)
Held that exemption under Section 11 is available only when income is actually applied for charitable purposes during the relevant previous year.
Mere setting aside or transfer to a reserve fund does not qualify unless it is specifically permitted and used for charitable purposes.
2. CIT vs. Bharat Gyan Vigyan Samiti (2000) 243 ITR 242 (SC)
Clarified that the exemption under Section 11 will be denied if the income is not applied or accumulated for charitable purposes.
Accumulation must be within the prescribed period under Section 11(2).
3. CIT vs. St. John Ambulance Association (1967) 66 ITR 286 (SC)
It was held that exemption under Section 11 is subject to the condition that the income should be applied for charitable or religious purposes in India.
If income is diverted or not used as per the objects of the trust, exemption can be denied.
4. CIT vs. Jawaharlal Nehru Memorial Fund (1967) 66 ITR 1 (SC)
Exemption under Section 11 depends on application of income and not merely on the object of the trust or corpus.
The trustees’ discretion to accumulate income does not automatically lead to exemption unless it meets conditions of the section.
5. CIT vs. Osmania University (1997) 227 ITR 868 (AP HC)
Held that if the trust does not apply the income for charitable purposes or applies it for non-charitable purposes, exemption under Section 11 will be denied.
6. CIT vs. Calcutta Jain Temple (1962) 46 ITR 254 (SC)
Exemption under Section 11 is denied if the income is utilized for purposes outside charitable objects.
Summary:
Section 11 exemption is linked to actual application or accumulation of income for charitable/religious purposes within prescribed time limits.
Non-application, diversion, or application to non-charitable purposes results in denial of exemption.
Mere existence of charitable objects or setting aside funds does not guarantee exemption.
Held that exemption under Section 11 is available only when income is actually applied for charitable purposes during the relevant previous year.
Mere setting aside or transfer to a reserve fund does not qualify unless it is specifically permitted and used for charitable purposes.
2. CIT vs. Bharat Gyan Vigyan Samiti (2000) 243 ITR 242 (SC)
Clarified that the exemption under Section 11 will be denied if the income is not applied or accumulated for charitable purposes.
Accumulation must be within the prescribed period under Section 11(2).
3. CIT vs. St. John Ambulance Association (1967) 66 ITR 286 (SC)
It was held that exemption under Section 11 is subject to the condition that the income should be applied for charitable or religious purposes in India.
If income is diverted or not used as per the objects of the trust, exemption can be denied.
4. CIT vs. Jawaharlal Nehru Memorial Fund (1967) 66 ITR 1 (SC)
Exemption under Section 11 depends on application of income and not merely on the object of the trust or corpus.
The trustees’ discretion to accumulate income does not automatically lead to exemption unless it meets conditions of the section.
5. CIT vs. Osmania University (1997) 227 ITR 868 (AP HC)
Held that if the trust does not apply the income for charitable purposes or applies it for non-charitable purposes, exemption under Section 11 will be denied.
6. CIT vs. Calcutta Jain Temple (1962) 46 ITR 254 (SC)
Exemption under Section 11 is denied if the income is utilized for purposes outside charitable objects.
Summary:
Section 11 exemption is linked to actual application or accumulation of income for charitable/religious purposes within prescribed time limits.
Non-application, diversion, or application to non-charitable purposes results in denial of exemption.
Mere existence of charitable objects or setting aside funds does not guarantee exemption.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- GST ITC REVERSE
- Regarding Applicability of Tax Audit u/s 44AB
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Tds on commission charges
- TDS on TRUST
- Section 50-fixed asset-->building ceases to exist
- Consolidated financials
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
