Section 11(5)

Section 11(5) — the law in short

What the courts have decided on section 11(5), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Trust for Reaching the Unreached v CIT High CourtHelps taxpayer
  Our audit report was not e-filed with the return and exemption was denied. Can the delay be condoned?
  Yes. The requirement to furnish the audit report with the return is procedural and directory, so exemption under ss.11 and 12 cannot be refused merely for late filing. The Commissioner's refusal to condone was set aside because the s.119(2)(b) discretion must be exercised equitably and judiciously, not on an exclusively pro-revenue view.
• CIT v Fr. Mullers Charitable Institutions High CourtHelps taxpayer
  One deposit of ours breaks the s.11(5) modes. Will the department tax the trust's entire income?
  No. Only the income from the investment or deposit made in violation of s.11(5) is taxed; a breach of s.13(1)(d) does not take the trust's total income out of s.11. On that footing the s.263 revision was held unsustainable.
• CBDT Circular 16/2024 CBDT Circulars & InstructionsHelps taxpayer
  Our Form 10B is years late. Who can condone the delay, and how long do I have to apply?
  Apply within three years from the end of the assessment year concerned. Delays up to 365 days are decided by the Principal Commissioner or Commissioner; delays beyond 365 days go to the Principal Chief Commissioner, Chief Commissioner or Director General. The circular covers Forms 9A, 10, 10B and 10BB for assessment year 2018-19 onwards.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.