S.RM.M.CT.M. TIRUPPANI TRUST vs THE COMMISSIONER OF INCOME TAX

The Supreme Court addressed the applicability of Section 11 of the Income-Tax Act, 1961, concerning the exemption of income for charitable trusts. The Court held that the sum of Rs. 8 lakhs, realized from an advance, could not be included as income for tax exemption under Section 11(1) as it was an asset acquired rather than income derived. However, the Court ruled that the remaining income of Rs. 1,64,210.03 was not eligible for exemption since it was not invested according to the requirements of Section 11(2).