Tribunal held that, exemption cannot be denied merely because the done trust has not spent the donation during the year itself. Tribunal also held that interest accrued on fixed deposits which was not received, to be treated as deemed application of income under clause (2) of Explanation to section 11(1), exemption cannot be denied. (AY. 2013-14, 2014-15)
All Saints School v. ITO (2019) 176 ITD 632 (Delhi)(Trib.)
S. 11 : Property held for charitable purposes-Application of income – Payment to another charitable trust–Exemption cannot be denied merely because the done trust has not spent the donation during the year itself–Interest accrued on fixed deposit – Deemed application of income–Exemption cannot be denied .[ S.11(2) 12, 12A , 13(3) ]