1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Mis-utilisation of funds may risk exemption

ByCA Gopal Nathani

Aug 3, 2023

Income-tax is a welfare legislation for it provides exemptions to charitable trusts etc.

However all said and done charity and luxury cannot go hand in hand in as much as in

(2023] 31 ITR (Trib)-OL 685 (ITAT[Pune) the trust lost on its exemption having utilised funds for purchase of Mercedes Benz for the trustee secretary use.

In this case the assessee failed to prove that the vehicle was used for furtherance of any charitable activity.

Never should a charitable entity purchase luxury cars in their course of rendering charitable activities else it may risk its exemption.