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II. Direct Taxes Case Laws:
1. CIT (E) Vs. Army Wives Welfare Association Lucknow, Appeal No. 66/2018, Date of Judgement: 15.11.2019, Allahabad High Court
Whether
where trust was not entitled to the exemption u/s 11, maximum marginal
rate should be applied on total income of trust not only on addition
made u/s 13?
Held: Yes
Held:
Hon’ble High Court held that “The maximum marginal rate was not
applied on the total income despite the fact that the assessee was not
found entitled to the exemption under section 11 of the Act of 1961. A
reference of section 164(2) of the Act of 1961 would be relevant for the
aforesaid. If the assessee was not entitled to the exemption under
section 11, the maximum marginal rate should have been applied on the
total income and not on the addition of Rs. 1,54,745/- and Rs.
2,95,185/-. Since the assessee conducted itself in violation of section
13 of the Income-tax Act, exemption under section 11 was denied in the
assessment order dated 12-2-2016. The CIT(Appeals) and the tribunal was
required to consider aforesaid aspect while restricting the maximum
marginal money on the addition of Rs. 1,54,745/- and Rs. 2,95,185/-.”
(Please click here for judgment)
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