SANGITA CHARITABLE TRUST,CHENNAI vs. ITO, EXEMPTIONS WARD-3,, CHENNAI

ITA 1614/CHNY/2026Status: DisposedITAT Chennai04 August 2026AY 2012-1311 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, a charitable trust, advanced loans to its trustees. The Assessing Officer (AO) denied the trust's exemption under Section 11 of the Income Tax Act, 1961, for the entire gross receipts, citing violations of Section 13. The CIT(A) upheld the AO's order.

What did the Tribunal hold?

The Tribunal held that violation of Section 13 does not lead to forfeiture of exemption for the entire income. Only the income diverted or applied for the benefit of specified persons is liable to tax.

What were the issues?

Whether denial of exemption under Section 11 for the entire income is justified when there is a violation of Section 13, or only to the extent of the benefit conferred on specified persons.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(c),Section 13(2)(a),Section 13(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA

For Respondent: Shri. Shiva Srinivas, CIT
Hearing: 15.07.2026Pronounced: 04.08.2026

PER S. R. RAGHUNATHA, AM : The present appeal is filed by the assessee against the order dated 27.01.2026 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “ld.CIT(A)”), dismissing the appeal filed by the assessee against the assessment order passed by the Income Tax Officer, Exemption Ward – 3,

:-2-: ITA. No.1614 /Chny/2026

Chennai

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 7,109 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →