Whether income exempt u/s 10 has to be excluded while computing income of charitable institutions exempt u/s 11? Whetherrequirement in section 11 with regard to application

Last updated: 11 April 2015

Court :
Bombay High Court

Brief :
The substantial question of law raised was whether an assessee claiming exemption u/s 11 can claim that income exempt u/s 10(33) and 10(38) to be excluded while computing the application of income for charitable or religious purpose. Held that there is nothing in the language of sections 10 or 11 which says that what is provided by section 10 or dealt with is not to be taken into consideration or omitted from the purview of section 11. If we accept the argument of the Revenue, the same would amount to reading into the provisions something which is expressly not there. The language ofthe two sections is plain and clear. The provisions, namely, sections10 and 11 fall under a Chapter which is titled “Incomes Which Do NotForm Part of Total Expenditure” (Chapter III). Section 10 deals withincomes not included in total income whereas section 11 deals withincome from property held for charitable or religious purposes. In such circumstances, the Tribunal was right in its conclusion that the income which in this case the assessee trust has not included by virtue of section 10, then, that cannot be considered under section 11.

Citation :
The Director of Income Tax (Exemptions) – Appellant- Versus - M/s. Jasubhai Foundation – Respondent