“Section 13(2)(b)”
The decision most relied on for Section 13(2)(b) is CIT v. Siemens Aktiongesellschaft (310 ITR 320), cited in 259 judgments on BharatTax.
Leading authorities on Section 13(2)(b)
Reimbursements of actual expenses without any profit element are not taxable income. Additionally, mere amendments to the Income-tax Act do not override the provisions of Double Taxation Avoidance Agreements (DTAAs).
A trust's objects, even if based on religious tenets, can qualify as charitable for tax exemptions if its benefits are not exclusively restricted to a particular religious community or caste.
An object beneficial to a section of the public, as distinguished from an individual or group of individuals, qualifies as an object of general public utility under Section 2(15) and hence a charitable purpose. This applies even if the benefits are restricted to a specific caste, community, or professional group.
Service tax paid to the Government of India is not 'on account of' the provision of services for mineral oil exploration and production, and thus does not form part of the aggregate taxable amount under Section 44BB(2)(a) and (b).
Subscription fees received by a non-resident for information access do not constitute 'royalty' for the use of copyright under the Income-tax Act, 1961. The case also elaborates on the scheme of taxability for non-residents under Section 5(2) of the Act, especially concerning income deemed to accrue or arise in India.
Section 13(1)(b) of the Income-tax Act applies to composite trusts that engage in both religious and charitable activities, meaning such trusts may be excluded from exemption under Section 11.
An intention to benefit a section of the public, as distinguished from a special individual, is sufficient for a trust to be considered for charitable registration and exemptions. This applies even if the beneficiaries belong to a specific caste, community, or professional group, allowing the trust to qualify as serving a general public utility under Section 2(15).
Exemption under Section 54 is available for the purchase of a residential property even if it comprises several independent units, as long as the property is of a residential nature.
