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News INCOME TAX

  • Dec 03, 2025
  • Tax exemption was denied due to clerical error in ITR filing: ITAT Bangalore gives relief, savs tax dept can't take advantage of this error

    On November 3, 2025, the Income Tax Appellate Tribunal (ITAT) Bangalore ruled that a taxpayer's tax deduction cannot be denied under Section 11 just because of a clerical mistake made while filing the income tax return (ITR). The ITAT said that the income tax department cannot take advantage of a taxpayers' mistake to deny him a tax exemption which has already been granted under Section 11.

    For those who might not know, Section 11 provides a structured tax exemption framework for Charitable and Religious Trusts registered under Section 12AB, allowing income to remain tax-exempt as long as it is used for approved charitable purposes.

    Summary of the judgement
    Chartered Accountant (Dr.) Suresh Surana says in this case (ITA No.1485/Bang/2025), the assessee is a charitable trust duly registered under Section 12AB, which qualifies it for exemption under Section 11.