Daily Archives: May 20, 2025

Charitable Trust’s Exemption Restored Despite High-Interest Loans from Specified Persons Due to Financial Hardship. Issue: Whether a charitable trust providing education should be denied exemption under sections 11 and 12 of the Income-tax Act, 1961, if it takes loans from specified persons at interest rates higher than the prevailing market rate, specifically concerning the violation… Read More »

Funds Provided to Sister Concerns: Differentiating Investment from Loan for Interest Disallowance. Issue: Whether an interest-free amount provided to a sister concern, which is subsequently converted into share application money and then share allotment, should be treated as a loan for the purpose of disallowing interest under section 36(1)(iii) of the Income-tax Act, 1961. Whether… Read More »