ASSISTANT COMMISSIONER OF INCOME TAX- 26(1), MUMBAI, MUMBAI vs. TATA EDUCATION TRUST, MUMBAI

ITA 4419/MUM/2024Status: DisposedITAT Mumbai10 October 2025AY 2014-1527 pages
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What did the Tribunal hold?

The Tribunal held that a charitable trust registered under Section 12A and eligible for exemption under Section 11 of the Act can also claim exemption under Section 10(34) and Section 10(35) of the Act. The Tribunal found that an identical issue arose in the assessee's own case for AY 2012-13, where a Coordinate Bench had decided in favour of the assessee, holding that exemption under Sections 10(34) and 10(35) is admissible. The Tribunal noted that the learned Departmental Representative agreed that the issue was covered by the Coordinate Bench's decision. Therefore, the Tribunal allowed the assessee's grounds related to the denial of exemption under Sections 10(34) and 10(35). The Tribunal also noted that for AY 2017-18, the CIT(A) had erred in not reversing the AO's order denying a part of the deduction under Section 80G and Section 80GGA, and these grounds were also allowed. The appeal concerning rectification proceedings under Section 154 for AY 2016-17 was dismissed as infructuous. The Revenue's appeals were dismissed as misconceived.

What were the facts?

The appeals by the assessee, Tata Education Trust, and the Department concerned the assessment years 2013-14 to 2017-18. The assessee, a charitable trust registered under Section 12A, had claimed exemption on dividend income of Rs. 12,06,00,000 and income from units of Rs. 32,504. The Assessing Officer (AO) denied exemption under Section 11, holding that investment in shares of Tata Sons Ltd. violated Sections 13(1)(d) and 11(5), and Section 13(2)(h) due to a trustee's involvement. The AO also denied exemption under Sections 10(34) and 10(35). The CIT(A) upheld the AO's reasoning regarding violations but granted partial relief by taxing only dividend income of Rs. 10,55,25,000 at the maximum marginal rate, while other incomes were taxed at the normal rate. The assessee contested the denial of exemption under Sections 10(34) and 10(35).

What were the issues?

1. Whether the assessee, a charitable trust registered under Section 12A, is eligible to claim exemption under Section 10(34) and Section 10(35) of the Income Tax Act, 1961 (the Act) on dividend income and income from units, respectively, when it is also claiming exemption under Section 11 of the Act? - Assessee's contention: Exemption under Sections 10(34) and 10(35) is admissible irrespective of claiming exemption under Section 11. Relied on the assessee's own case for AY 2012-13 (ITA No. 3080/Mum/2018). Argued that the CIT(A) wrongly applied CIT vs. Working Women's Forum [2015] 53 taxmann.com 85 (Madras) as the relevant assessment years and provisions differed. - Revenue's contention: Supported the reasoning of the departmental authorities, implying that exemption under Section 11 precludes exemption under Sections 10(34) and 10(35).

Which sections of the Income-tax Act were involved?

Section 10(34),Section 10(35),Section 11,Section 11(5),Section 12A,Section 13(1)(d),Section 13(2)(h),Section 80G,Section 80GGA,Section 154,Section 234B,Section 234C

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Cases cited in this judgment(4)Show list

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IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER

ITA No. 4282, 4283, 4156, 4496, 4727, 4835, 4852, 4419, 4873/Mum/2024 (Assessment Years: 2014-15, 2013-14,)

Tata Education Trust Bombay House, 24, Homi Mody Street, Fort, Mumbai-400001

(Appellant) Circle-2(1), Mumbai

(Respondent)

ITA No. 4156, 4496, 4727 & 4835/Mum/2024 (Assessment Years:2015-16, 2016-17 & 2017-18)

Tata Education Trust Bombay House, 24, Homi Mody Street, Fort, Mumbai-400001

(Appellant)

PAN NO. AAATT 9835A

Vs.

Asstt. Commissioner of Income Tax-17(3) Kautilya Bhavan, Bandra Kurla Complex, Mumbai-400 051

(Respondent)

ITA No.4852, 4419, 4873 /Mum/2024 (Assessment Years:2013-14, 2014-15 and 2017-18)

Asstt. Commissioner of Income Tax- 26(1), Room No. 249, 2nd Floor Kautilya Bhavan, BKC, Mumbai-400 051

(Appellant) Mumbai-400001

(Respondent)

Appellant by Respondent by Shri P.J. Pardiwala a/w Shri Sukhsagar Syal & Shri Atul Suraiya Shri

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