Trusts Exemption u/s 12A

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2010 Whether cost of construction of mosque within College Campus, (run by a minority Trust) can be claimed as Application of Income by the Trust.

VINOD ARORA

VINOD ARORA (Expert)
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16 August 2010 Section 13 of the Act, specifies the circumstances under which the benefits under section 11 would not be available to an organisation. Section 13 has been enacted as an exception to section 11, thereby, the benefits which are otherwise available under sections 11 and 12, will not be available under the circumstances stated in section 13. An organisation, under the following circumstances,may risk losing its exemptions under section 11 :

(i) If the income is not applied for the benefit of the public [section 13(1)(a)].

(ii) If the income is applied for the benefit of any particular religious community or caste [section 13(1)(b)].

(iii).....etc.

So the answer is NO.