“Section 11(44)”
The decision most relied on for Section 11(44) is CIT v. Indian Jute Mills Association (134 ITR 68), cited in 30 judgments on BharatTax.
Leading authorities on Section 11(44)
Expenditure incurred includes depreciation claims. Necessary provisions required by statute, such as for gratuity and leave encashment, can be considered as applied for the objects of a trust.
The Assessing Officer's power to make adjustments is restricted, particularly concerning actuarial valuations, and this power is bound by principles laid down by the Supreme Court.
The income earned on the shareholders' account in a life insurance business is to be considered as arising out of the life insurance business and not as income from other sources, especially when it is arrived at by combining surplus from both shareholders' and policyholders' accounts.
An assessee's activities do not constitute business or trade if they generate a surplus incidentally while pursuing charitable objects, and are thus not hit by the proviso to section 2(15) of the Act, making them eligible for exemption under sections 11 and 12.
