“Section 10(23)”
The decision most relied on for Section 10(23) is CIT v. Ansal Housing Finance & Leasing Co. Ltd. (354 ITR 180), cited in 208 judgments on BharatTax.
Leading authorities on Section 10(23)
Annual Letting Value (ALV) of unsold stock-in-trade flats/shops held by a real estate developer can be assessed under Section 22 of the Income Tax Act, 1961, as income from house property. This approach was followed by the Assessing Officer (AO) based on this decision.
An organization’s purpose qualifies as 'general public utility' under section 2(15) if its primary objective is charitable, even if it incidentally benefits a specific group or generates some profit, provided the dominant motive is not profit-making. Such an entity is eligible for exemptions under the Act.
If a property is not let out at all, notional income must be computed, and the benefit of section 23(1)(c) (vacancy allowance) cannot be extended. However, section 23(1)(c) can apply to properties let out for two or more years that remain vacant for the entire previous year.
A trust's charitable character is not lost if its activities generate profits, as long as those profits are obligated to be spent exclusively or essentially on charitable purposes. The genuineness of the charitable purpose, as demonstrated by the obligation to spend the funds, is the key test.
Revisional jurisdiction under section 263 of the Income Tax Act, 1961, cannot be exercised beyond a period of two years from the date of the order sought to be revised. This applies to orders passed under section 143(1) and issues not considered during reassessment proceedings under section 143(3)/147.
Denying an opportunity to cross-examine third parties does not amount to a violation of natural justice if their statements and reports are only secondary or subordinate material used to support the main addition.
Corpus donations are capital receipts and are not taxable, even if the trust is not registered under section 12A/12AA of the Income-tax Act.
Mens rea is not an essential element for imposing a penalty for the breach of a civil obligation. The levy of penalty attaches if the provisions of law are contravened, regardless of the defaulter's guilty intention.
