“Section 12(5)(b)”
The decision most relied on for Section 12(5)(b) is ACG Associated Capsule Private Limited v. Commissioner of Income Tax, Central IV, Mumbai (3 SCC 321), cited in 89 judgments on BharatTax.
Leading authorities on Section 12(5)(b)
Profits of a business are computed under the head 'Profits and Gains of Business or Profession' and then reduced by specific receipts mentioned in Explanation (baa) to Section 80HHC. This means that for the purposes of Section 80HHC, only profits computed under the business head are considered, with subsequent adjustments for specified receipts.
When considering an application for condonation of delay, courts must adopt a liberal, pragmatic, and justice-oriented approach, understanding 'sufficient cause' in its proper spirit to serve the ends of justice and avoid legalizing injustice.
Section 13(1)(b) cannot be invoked at the stage of registration under Section 12A; it is attracted only at the time of assessment for exemption under Section 11.
Section 13(1)(b) of the Income Tax Act, 1961, which denies exemption, applies only to trusts that are purely for charitable purposes. If a trust has both charitable and religious objects, section 13(1)(b) is not applicable, and such a trust may be entitled to exemption under section 11.
Denial of exemption under sections 11 and 12 for delay in filing Form No. 10B is not sustainable if substantive conditions for exemption are met, as such delay is a procedural defect that can be condoned in the interest of substantial justice.
A singular different fact or point can alter the precedential value of a judgment. Provisions of a statute must be read as they are, without adding or removing anything, when the language is clear and unambiguous.
