During survey it was\u00a0 found that the trust had made certain payments to a company in which the trustees being\u00a0 specified persons were having substantial t interest and also found that\u00a0 substantial honorarium was paid to trustees and their family members .\u00a0 The notice was issued against \u00a0for denial of exemption under section 11 on ground that payment out of income from property held under trust was paid directly for benefit of persons referred to in section 13(3) of the Act Assessee filed an \u00a0writ petition against said show cause notice for reason that impugned notice threatened to cancel primary exemption enjoyed by trust . The Court held that \u00a0it is a settled law that denial of exemption under section 11 should only be to extent of income which is violative of section 13(1)(d) and not total denial of exemption . Accordingly the \u00a0revenue was to be directed to only forfeit exemption under section 11 in respect of offending payments . (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 13 : Denial of exemption-Trust or institution-Investment restrictions \u2013 Survey – Only to extent of income which was violative of section 13(1)(d) and not total denial of exemption. [ S. 11, 12A, 13(1)(d), 133A, Art , 226 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-22510","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5R4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=22510"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22510\/revisions"}],"predecessor-version":[{"id":22511,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/22510\/revisions\/22511"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=22510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=22510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=22510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}