NATIONAL EDUCATION SOCIETY,MUMBAI vs. DCIT, EXE CIRCLE 2, MUMBAI

ITA 8823/MUM/2025Status: DisposedITAT Mumbai04 May 2026AY 2017-186 pages
AI SummaryDismissed

What were the facts?

The assessee, a charitable trust, received a Government Salary Grant intended for salary disbursement. The Assessing Officer excluded this grant from the income base for calculating the 15% accumulation allowed under Section 11(1)(a). The CIT(A) upheld this decision.

What did the Tribunal hold?

The Tribunal held that the Government Salary Grant, being a tied-up receipt with specific utilization obligations, does not constitute income available for discretionary application or accumulation under Section 11(1)(a). The assessee lacks dominion over these funds.

What were the issues?

Whether a Government Salary Grant, impressed with specific utilization obligations, can be included in the income base for computing the 15% accumulation permissible under Section 11(1)(a) for charitable trusts.

Which sections of the Income-tax Act were involved?

Section 11(1)(a),Section 2(24)(iia),Section 12(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI JAGADISH

For Appellant: Shri Anil Thakkar
For Respondent: Shri Swapnil Choudhari (SR. AR.)
Hearing: 10.03.2026Pronounced: 04.05.2026

Per: SHRI JAGADISH, A.M.:

1.

This appeal filed by the assessee is directed against the order dated 05.11.2024 passed by the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi for the assessment year 2017–18 arising out of the assessment framed under section 143(3) of the Income-tax Act, 1961 (in short “the Act”). National Education Society

2.

The grievance of the assessee is against the action of the lower authorities in excluding the Government Salary Grant from the eligible income for the purpose of computing accumulation under section 11(1)(a) of the Act.

3.

Briefly stated, the assessee is a charitable trust engaged in the field of education and is registered under the provis

The order continues below.

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