Tribunal held that while determining income available for application under section 11, income of a trust should be computed under commercial principles without resorting to computation mechanism as provided under respective head of income. Accordingly standard deduction u/s 24(a) at 30 percent is not allowable. Tribunal held that deduction as to repairs and maintenance expenses incurred on trust property being meant for objects of charitable trust, was to be allowed in computing income available for application. (AY. 2012-13)
Nandlal Tolani Charitable Trust. (2019) 176 ITD 769/ 181 DTR 97 (Mum.) (Trib.)
S. 11 : Property held for charitable purposes-Application of income -Income from house property – Rental income derived from Trust -No Standard deduction at 30 percent is not allowable–Repairs and maintenance expenses incurred on trust property being meant for objects of charitable trust is to be allowed in computing income of the Trust as application of income. [S. 24(a)]