It was held that there was violation of Section 13, and then only the amount of benefit given to the persons specified under Section 13(3) out of the income of the trust was chargeable to tax at maximum marginal rate. The action of AO in taxing the surplus at maximum marginal rate without considering the provisions of Section 11 & 12 was bad in law. (AY. 2013-14, 2014-15, 2015-16)
DCIT(E) v. Central Academy Jodhpur Education Society (2020) 208 TTJ 545 (Jaipur)(Trib.)
S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Only upto the violation of the provisions-Exemption cannot be denied. [S. 11, 12, 13(3), 164(2)]