SOCIETY FOR HUMAN TRANSFORMATION AND RESEARCH,NEW DELHI vs. ITO WARD 2(2) EXEMPTIONS, DELHI, NEW DELHI

ITA 6718/DEL/2025Status: DisposedITAT Delhi07 August 2026AY 2018-198 pages
AI SummaryAllowed

What were the facts?

The assessee society made interest-free or low-interest loans and advances to entities specified under Section 13(3) of the Income Tax Act. The Assessing Officer (AO) made additions under Section 40A(2)(a) and denied exemptions under Sections 11 & 12, also disallowing donations for lack of 80G certificates from recipients.

What did the Tribunal hold?

The Tribunal held that Section 40A(2)(a) is not applicable as it pertains to expenses, not income. It also found that donations to other registered charitable entities are permissible applications of income. Consequently, the additions and denial of exemptions were not sustained.

What were the issues?

Whether interest-free advances to specified persons and donations to other charitable trusts are valid applications of income and whether Section 40A(2)(a) can be invoked for disallowance in such cases.

Which sections of the Income-tax Act were involved?

Section 13(3),Section 40A(2)(a),Section 11,Section 12,Section 13(1)(c),Section 13(2)(g),Section 37,Section 80G,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: ANUBHAV SHARMA & MANISH AGARWAL

For Respondent: Shri Rajesh Chandra,CIT(DR)
Pronounced: 07.08.2026

PER ANUBHAV SHARMA, JUDICIAL MEMBER:

This appeal preferred by the assessee against the order dated 26.09.2025 of Ld. National Faceless Appeal Centre (NFAC) Delhi, (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1081201889(1) arising out of the

The order continues below.

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