Held that non registration of trust does not render activities as non charitable advance to charitable object. Exemption cannot be denied. Tribunal also held that when the income is diverted which is violation of the provision the said income can be taxed at maximum marginal rate and not whole income of the Trust. Followed CIT v. Working Women’s Forum (2014) 365 ITR 353 (Mad.) (HC). (AY.2011-12, 2012-13)
ACIT(E) v. Mahendra Educational Trust (2021) 88 ITR 370 / 210 TTJ 350 / 200 DTR 81(Chennai)(Trib.)
S. 11 : Property held for charitable purposes-Non registration of trust does not render activities as non charitable advance to charitable object-Exemption cannot be denied-Diversion of fund-Only income which is violation of the provision can be taxed at maximum marginal rate and not whole income of the Trust. [S. 13(1)(c)]