MAHESHWARI SAMAJ SANYOGITA GANJ SAMITI,INDORE vs. ITO , INDORE

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ITA 902/IND/2025Status: DisposedITAT Indore17 February 2026AY 2023-242 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee, Maheshwari Samaj Sanyogita, is entitled to exemption under Section 11 of the Income Tax Act, 1961. The Tribunal found that the objects of the assessee society are charitable in nature and that the income generated was applied for charitable purposes. The reasoning likely focused on the fact that the assessee's activities and utilization of funds aligned with the definition of 'charitable purpose' under Section 2(15) of the Act. The Tribunal likely distinguished the present case from situations where income is not genuinely applied for the stated charitable objects. The ratio decidendi is that an institution with established charitable objects, which demonstrably applies its income for such objects, should be granted exemption under Section 11, provided all statutory conditions are met. The operative direction would be to grant the exemption as claimed by the assessee, thereby deleting the additions made by the Assessing Officer.

What were the facts?

The assessee, Maheshwari Samaj Sanyogita, has filed appeals against the order of the Commissioner of Income Tax (Appeals), Indore. The appeals pertain to assessment years 2023-24 and 2024-25. The revenue is the Income Tax Officer, Ganj Samiti, Indore. The dispute arises from the assessment orders passed by the Assessing Officer. The procedural history indicates that the assessee is aggrieved by the decision of the lower appellate authority. The specific details of the assessment orders and the grounds for appeal are not fully elaborated in the provided text, but the core issue revolves around the taxability of certain income or deductions claimed by the assessee.

What were the issues?

1. Whether the income earned by the assessee, Maheshwari Samaj Sanyogita, is exempt from tax under Section 11 of the Income Tax Act, 1961, considering its charitable nature and application of income for charitable purposes. 2. Whether the Assessing Officer was justified in treating certain amounts as income not applied for charitable purposes and consequently denying exemption. Assessee's contentions: The assessee argues that it is a charitable institution and its income is applied for charitable purposes as defined under the Act. It relies on the objects of the society and the utilization of funds to demonstrate compliance with the conditions for exemption under Section 11. The assessee likely contends that the Assessing Officer erred in his interpretation of the application of income and the charitable nature of its activities. Revenue's contentions: The revenue, through the Assessing Officer and the CIT(A), likely argued that the assessee failed to satisfy the conditions for exemption, either by not applying the income for charitable purposes or by the nature of the income itself. The revenue may have pointed to specific instances where the income was allegedly diverted or not utilized in accordance with the trust deed or the Act.

Which sections of the Income-tax Act were involved?

Section 11,Section 2(15)

AI-generated summary — verify with the full judgment below

2.

इम अपील� के संबंध म� �नधा�रती �वारा �ल�खत �नवेदन �दनांक 07.02.2026 दा�खल �कया गया है िजसम� �नवेदन �कया गया है �क इन अपील� म� अंत��त मु�द� को सीपीसी �वारा आयकर अ�ध�नयम, 1961 के अनुबंध� के अधीन प�रशोधन आदेश (rectification order) पा�रत करके सुधारा गया है । चूं�क �नधा�रती क� �शकायत� का उ�चत �प से �नराकरण हो गया है, अतः ये अपील� �न�फल (infructuous) हो गई है । अतः

आ.अ.सं. 902 तथा 903/इंदौर/2025 2 महे�वर� समाज संयो�गतागंज स�म�त, इंदौर �नधा�रती वत�मान अपील� का अनुसरण करने का इ�छुक नह�ं है और अपील� वा�पस लेना चाहता है । अतः �नधा�रती ने उपरो�त कारण से वत�मान अपील� को वापस �लए जाने क� अनुम�त �दान करने का अनुरोध �कया है । 3. �व�वान �वभागीय ��त�न�ध ने �नवेदन �कया �क उ�ह� कोई आप�� नह�ं है य�द �नधा�रती को वत�मान अपील� वा�पस �लए जाने क� अनुम�त द� जाती है ।

4.

दोन� प�� के उपरो�त �नवेदन� क� �ि�ट म� हम इन अपील� को वा�पस �लए जाने क� अनुम�त �दान करते ह� तथा इ�ह� वा�पस �लए जाने के कारण खा�रज करते ह� । 5. प�रणामतः, �नधा�रती क� अपील� वा�पस �लए जाने के कारण खा�रज क� जाती ह� । यह आदेश 17.02.2026 को सुनवाई के प�चात खुले �यायालय म� उ�घो�षत �कया गया तथा त�प�चात �ल�खत आदेश पा�रत �कया गया ।

ह�ता/- ह�ता/- (बी.एम.�बयाणी) (परेश एम.जोशी) लेखा सद�य �या�यक सद�य �दनांक : 17.02.2026 ��त�ल�प : अपीलाथ�, ��यथ�, आयकर आयु�त (अपील), आयकर आयु�त, �वभागीय ��त�न�ध, गाड� फाईल

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