BIBI SAIYADA MEMORIAL TRUST,SAMASTIPUR vs. ITO EXEMPTION, MUZZAFFARPUR

ITA 295/PAT/2026Status: DisposedITAT Patna27 July 2026AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that repayment of a loan taken for charitable purposes may be considered application of income, but double exemption is impermissible. The Tribunal remanded the issue to the AO to re-examine whether the loan was considered as income in the year it was taken and utilized for trust objects.

What were the facts?

The assessee trust appealed against the disallowance of Rs. 13,00,000 as repayment of unsecured loan treated as non-application of income. The CIT(A) confirmed the disallowance, citing the principle of no double benefit and lack of clear documentary correlation. The trust also faced disallowance of accumulation due to delayed filing of Form 9A.

What were the issues?

Whether repayment of a loan taken for charitable purposes constitutes application of income, and if the delay in filing Form 9A for accumulation can be condoned.

Which sections of the Income-tax Act were involved?

Section 11,Section 11(2),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 01.07.2026Pronounced: 27.07.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)] dated 29.01.2026 DIN & order No. ITBA/NFAC/S/250/2025- 26/1085306008(1) on the following grounds of appeal:

2 Bibi Saiyada Memorial Trust

1.

That the order passed by the Learned CIT(A) is bad in law, contrary to facts and liable to be quashed.

2.

Repayment of Loan treated as non-application of income. That the Learned CIT(A) erred in confirming

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →