Allowing the appeal the Tribunal held that so long as the assessee had been utilising its income derived from the property held under the trust for its charitable objectives, the provisions of section 11 did not deny exemption to a charitable trust. Hence, mere generation of surplus could not be a reason to deny exemption under section 11 of the Act . ( AY.2009-10)
Janodaya Trust v. A CIT (E) (2021) 86 ITR 1 (SN)(Bang) (Trib)
S. 11 : Property held for charitable purposes – Microfinance to self help groups – No profit motive – Denial of exemption is not justified [ S. 2(15), 12A ]