“Section 10(25)”
The decision most relied on for Section 10(25) is Commissioner of Income-tax v. Society for Promotion of Education, Adventure Sport & Conservation of Environment (382 ITR 6), cited in 26 judgments on BharatTax.
Leading authorities on Section 10(25)
If an assessee has applied for approval of a fund or exemption within a reasonable time, the exemption should not be denied due to delays in processing by the tax authorities. The taxing authorities erred in holding that gross receipts are taxable without allowing expenditure when exemption is denied.
A charitable or religious trust is entitled to accumulate 25% of its income, with donations received constituting its property for this purpose.
When circumstantial evidence combined with the assessee's conduct leads to the conclusion that accommodation entries were taken and purchases were not genuine, a disallowance of 25% of the impugned purchases may be considered sufficient.
Reopening an assessment under section 147 after four years from the end of the relevant assessment year requires the recorded reasons to clearly indicate a failure on the part of the assessee to fully and truly disclose material facts necessary for the assessment.
Fees for computer software and technical services are taxable as fees for technical services under the Income Tax Act and are not royalties, unless the software is embedded with an enduring benefit and is integral to the business.
