India's Tax Tribunals Uphold Charitable Trust Exemptions and Reject Service Tax Demand

The Delhi Income Tax Appellate Tribunal (ITAT) restored Sections 11 and 12 exemption for the Society for Human Transformation and Research, deleting disallowances on interest‑free loans to related charitable entities and on donations. The tribunal held that such loans do not constitute taxable income and that Section 40A(2)(a) cannot be used to add notional interest.

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that a service‑tax demand issued solely on the basis of Form 26AS could not invoke the extended limitation period. While upholding a demand for service tax on the hiring of a JCB, the tribunal set aside the rest of the demand, noting that the services were rendered for the exempt Ghar Ghar Jal Yojna project under Notification 25/2012‑ST.