The ITAT clarified that only grants received in the relevant year count for exemption under Section 10(23C)(iiiab), excluding cumulative grants from prior years.
Yearly Relevance of Grants for Tax Exemption
The ITAT established that for tax exemption under Section 10(23C)(iiiab), only grants received during the relevant assessment year are considered. This ruling excludes any cumulative grants received since the inception of the institution from the exemption tally.
This decision highlights the criticality of time-specific compliance in taxable sources of income and underlines the necessity for entities to monitor their grant receipts closely.
Practitioners should advise their clients about the importance of timing related to grant receivership when claiming deductions, ensuring they adhere to the standards set forth by the Tribunal.
Citations
- ITAT (2026) Taxscan
