CBDT Grants Income Tax Exemption to Chandigarh High Court Legal Services Committee on Costs; Grants Bank Interest

The Central Board of Direct Taxes (CBDT) granted income tax exemption to the Chandigarh High Court Legal Services Committee on amounts received as costs in legal proceedings. Additionally, the Committee’s bank interest on such funds was also exempted. This decision is based on the Committee’s charitable and public welfare objectives, qualifying it under Section 10(23C) of the Income Tax Act. The exemption ensures that legal aid funds are utilized effectively without tax burdens, supporting access to justice for economically weaker sections. The ruling clarifies tax treatment for similar statutory committees providing legal services.