“section 115BBC”
The decision most relied on for section 115BBC is S.R.M.M.C.T.M Tiruppani Trust v. CIT (230 ITR 636), cited in 54 judgments on BharatTax.
Leading authorities on section 115BBC
Capital expenditure incurred by a trust from its own funds is considered an application of income, entitling the trust to claim exemption under Section 11(1) of the Income-tax Act.
The exercise of a power must be referable to a jurisdiction that validates it, not one that would render it nugatory. Provisions concerning the machinery for assessment must be interpreted to make the tax charge effective.
For funds to be considered part of a charitable activity, the predominant object of the institution must be charitable, not profit-making. Any surplus generated must be redeployed in charitable activities.
An order passed by the CIT under Section 12A of the Income Tax Act is quasi-judicial. Until October 1, 2004, there was no express provision in the Act for the CIT to cancel a registration certificate once granted.
Profits generated from activities for the advancement of a general public utility (GPU) do not automatically qualify for exemption under Section 11 if the GPU is carried on as a business. Even if business profits are reinvested into charitable activities, the exemption under Section 11 will not be available.
A trust with education as an object, which qualifies as a charitable purpose under section 2(15), should be accepted as having a charitable purpose. The grant of registration under section 12A is applicable when a trust has education as an object.
At the stage of registration under Section 12AA, the extent and nature of activities are not required to be examined; this is to be examined during assessment proceedings.
An error in mentioning the specific sub-section of a law, or referencing a wrong section, does not invalidate an action if the authority otherwise possesses the power to take that action.
