Allowing the appeal of the revenue, the court held that as the assessee has failed to prove income on behalf of regimental fund or non-public fund established by armed forces of Union. Accordingly not entitle for exemption. Marginal rate to be applied to total income and not only addition made under section 13 of the Act .
CIT v. Army Wives Welfare Association. (2020) 185 DTR 395 / 312 CTR 375/ 271 Taxman 139/ 116 taxmann.com 215 (All.)(HC)
S. 10(23AA) : Funds established for welfare of employees – Failed to prove income on behalf of regimental fund or non-public fund established by the armed forces of the Union- Denial of exemption is held to be justified. – Marginal rate to be applied to total income . [S. 11, 13 ,148, 164 ]