|CORAM:||Bhavnesh Saini (JM), T. R. Sood (AM)|
|CATCH WORDS:||Charitable purpose|
|DATE:||April 30, 2015 (Date of pronouncement)|
|DATE:||June 2, 2015 (Date of publication)|
|FILE:||Click here to view full post with file download link|
|S. 11(1)(a): Charitable institutions are eligible to a blanket deduction of 15% of the gross receipts without being required to satisfy any condition|
The decision of the Hon’ble Supreme Court in A.L.N Rao Charitable Trust reported in 216 ITR 697(SC) clearly held that there is a blanket exemption with regard to the 25% (now 15%) of gross receipts as per second part of Section 11(1)(a) of the Income Tax Act. This exemption of 15% is not dependent on any other condition except that the trust or society should be registered u/s 12AA of the Income Tax Act. The only issue to be examined here is whether the provisions of section 11(1) (a) and 11(2) have been since amended and if so, whether the aforesaid decision would apply to the amended provisions also?