Charitable Institution-Exemption u/s. 10 & 11- In computing the income of charitable institutions exempt u/s. 11, income exempt u/s. 10 has to be excluded. The requirement in section 11 with regard to application of income for charitable purposes does not apply to income exempt u/s. 10 –

The Bombay High Court had to consider whether an assessee enjoying exemption u/s. 11 could claim that the income exempt u/s. 10(33) and 10(38) had to be excluded while computing the application of income for charitable or religious purpose.

The High Court held as under:

“There is nothing in the language of sections 10 or 11 which says that what is provided by section 10 or dealt with is not to be taken into consideration or omitted from the purview of section 11. If we accept the argument of the Revenue, the same would amount to reading into the provisions something which is expressly not there. In such circumstances, the Tribunal was right in its conclusion that the income which in this case the assessee trust has not included by virtue of section 10, then, that cannot be considered u/s. 11.”