Advance Receivables Qualify as Application of Income u/s 11(2): ITAT directs AO to accept Claim

The ITAT has directed the Assessing Officer (AO) to accept a charitable institution's claim that its advance receivables qualify as an application of income under Section 11(2). The tribunal's decision clarifies that an institution can claim an exemption for a sum if it is for the purpose of a charitable activity. The ruling reinforces the principle that a person cannot be taxed on a profit if it is for a charitable purpose. The court’s decision is a crucial reminder to all that they must be diligent in their dealings.