1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust (249 ITR 533)

Q: What is 1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust authority for?

Income of a trust that is taxable at the maximum marginal rate should be taxed accordingly, while other income is eligible for exemption under Section 11 of the Income-tax Act.

Q: How many judgments cite 1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust?

108 judgments on BharatTax cite 1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust (249 ITR 533), spanning 2015 to 2026.

Q: Which sections of the Income Tax Act does 1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust come up under?

It is most often cited in judgments turning on Section 11, Section 11(5), Section 13(1)(c), Section 13(3), Section 164(2), Section 13(1)(d).

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 28/CHANDI/2020[2014-15]Status: DisposedITAT Chandigarh27 May 2021AY 2014-15

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

Section 13(3)

…icer is totally devoid of any valid reasons reliance is also being placed on the following judgements – ITA 02/Chd/2020 & 7 Ors. M/s Manav Mangal Society Vs DCIT(E) i. Director of Income Tax (Exemptions) Vs. Sheth Mafatial Gagal Bhai foundation Trust (2001) 249 ITR 533, Bombay High Court ii. CIT Vs. Fr. Mullers Chartiable Institutions (2014) 363 ITR 230, Karnataka High Court iii. The above said view is further fortified by the Circular No.387, dated 6th of July, 1999, in which,it has been held as under:- Therefore, under such circumstances, taxing of entire surplus as per income and expenditure account is…

DCIT, Circle-1(Exemption), Chandigarh vs. M/S Manav Mangal School( Manav Mangal Society), Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 27/CHANDI/2020[2013-14]Status: DisposedITAT Chandigarh27 May 2021AY 2013-14

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

Section 13(3)

…icer is totally devoid of any valid reasons reliance is also being placed on the following judgements – ITA 02/Chd/2020 & 7 Ors. M/s Manav Mangal Society Vs DCIT(E) i. Director of Income Tax (Exemptions) Vs. Sheth Mafatial Gagal Bhai foundation Trust (2001) 249 ITR 533, Bombay High Court ii. CIT Vs. Fr. Mullers Chartiable Institutions (2014) 363 ITR 230, Karnataka High Court iii. The above said view is further fortified by the Circular No.387, dated 6th of July, 1999, in which,it has been held as under:- Therefore, under such circumstances, taxing of entire surplus as per income and expenditure account is…

M/S Manav Mangal Society, Chandigarh vs. DCIT, C-1, (E), Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 2/CHANDI/2020[2010-11]Status: DisposedITAT Chandigarh27 May 2021AY 2010-11

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

Section 13(3)

…icer is totally devoid of any valid reasons reliance is also being placed on the following judgements – ITA 02/Chd/2020 & 7 Ors. M/s Manav Mangal Society Vs DCIT(E) i. Director of Income Tax (Exemptions) Vs. Sheth Mafatial Gagal Bhai foundation Trust (2001) 249 ITR 533, Bombay High Court ii. CIT Vs. Fr. Mullers Chartiable Institutions (2014) 363 ITR 230, Karnataka High Court iii. The above said view is further fortified by the Circular No.387, dated 6th of July, 1999, in which,it has been held as under:- Therefore, under such circumstances, taxing of entire surplus as per income and expenditure account is…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 137/CHANDI/2020[2011-12]Status: DisposedITAT Chandigarh27 May 2021AY 2011-12

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

Section 13(3)

…icer is totally devoid of any valid reasons reliance is also being placed on the following judgements – ITA 02/Chd/2020 & 7 Ors. M/s Manav Mangal Society Vs DCIT(E) i. Director of Income Tax (Exemptions) Vs. Sheth Mafatial Gagal Bhai foundation Trust (2001) 249 ITR 533, Bombay High Court ii. CIT Vs. Fr. Mullers Chartiable Institutions (2014) 363 ITR 230, Karnataka High Court iii. The above said view is further fortified by the Circular No.387, dated 6th of July, 1999, in which,it has been held as under:- Therefore, under such circumstances, taxing of entire surplus as per income and expenditure account is…

DCIT, C-1, (E), Chandigarh vs. M/S Manav Mangal Society, Chandigarh

In the result, all the appeals of the assessee are allowed and all the appeals of the department are dismissed

ITA 136/CHANDI/2020[2010-11]Status: DisposedITAT Chandigarh27 May 2021AY 2010-11

For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Shri Sandeep Dahiya, CIT-DR

Section 13(3)

…icer is totally devoid of any valid reasons reliance is also being placed on the following judgements – ITA 02/Chd/2020 & 7 Ors. M/s Manav Mangal Society Vs DCIT(E) i. Director of Income Tax (Exemptions) Vs. Sheth Mafatial Gagal Bhai foundation Trust (2001) 249 ITR 533, Bombay High Court ii. CIT Vs. Fr. Mullers Chartiable Institutions (2014) 363 ITR 230, Karnataka High Court iii. The above said view is further fortified by the Circular No.387, dated 6th of July, 1999, in which,it has been held as under:- Therefore, under such circumstances, taxing of entire surplus as per income and expenditure account is…

ACIT, Exemptions, Coimbatore vs. Mahendra Educational Trust, Manakkal

In the result, appeal filed by the Revenue is dismissed and cross objection filed by the assessee is allowed

ITA 125/CHNY/2019[2011-12]Status: DisposedITAT Chennai11 Feb 2021AY 2011-12

Bench: Shri Duvvuru Rl Reddy & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 125 & 126/Chny/2019 िनधा"रण वष" / Assessment Years: 2011-12 & 2012-13 The Acit (Exemptions), M/S. Mahendra Educational May Flower Mid City Building, V. Trust, 1510, Trichy Road, Kalipatti Post, Attayampatti Via, Coimbatore – 641 018. Tiruchengode, Namakkal – 637 501. Pan: Aaaam2491C (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co Nos.: 18 & 19/Chny/2019 (In Ita Nos.125 & 126/Chny/2019) िनधा"रण वष" / Assessment Years: 2011-12 & 2012-13 The Acit (Exemptions), M/S. Mahendra Educational May Flower Mid City Building, V. Trust, 1510, Trichy Road, Kalipatti Post, Attayampatti Via, Coimbatore – 641 018. Tiruchengode, Namakkal – 637 501. Pan: Aaaam2491C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri N.V. Balaji, Advocate राज" की ओर से /Revenue By : Shri G. Chandrababu, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 28.01.2021 घोषणा क" तार"ख/Date Of Pronouncement : 11.02.2021

For Appellant: Shri N.V. Balaji, AdvocateFor Respondent: Shri G. Chandrababu, Addl.CIT

Section 1Section 11Section 12ASection 13Section 13(1)Section 13(1)(c)Section 13(1)(d)Section 13(2)(a)Section 13(2)(h)Section 13(3)

…e judgment of the Hon’ble jurisdictional High Court in the case of CIT Vs Working Women’s Forum (365 ITR 353 — SLP dismissed in (235 Taxman 516 SC) and that of the Hon’ble Bombay High Court in the case of DIT (E) Vs. Sheth Mafatlal Gagalbhai Foundation Trust [249 ITR 533 (Born)]. 7.2 I have perused the case laws relied on by the appellant. The Hon’ble jurisdictional High Court in the case of CIT Vs Working Women’s Forum [2014] 365 ITR 0353 has held that the denial of exemption should only be to the extent of the income which was violative of section 13 (1)(d) and not the total denial of exemption under section ]…

ACIT, Exemptions, Coimbatore vs. Mahendra Educational Trust, Manakkal

In the result, appeal filed by the Revenue is dismissed and cross objection filed by the assessee is allowed

ITA 126/CHNY/2019[2012-13]Status: DisposedITAT Chennai11 Feb 2021AY 2012-13

Bench: Shri Duvvuru Rl Reddy & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 125 & 126/Chny/2019 िनधा"रण वष" / Assessment Years: 2011-12 & 2012-13 The Acit (Exemptions), M/S. Mahendra Educational May Flower Mid City Building, V. Trust, 1510, Trichy Road, Kalipatti Post, Attayampatti Via, Coimbatore – 641 018. Tiruchengode, Namakkal – 637 501. Pan: Aaaam2491C (अपीलाथ"/Appellant) (""यथ"/Respondent) & Co Nos.: 18 & 19/Chny/2019 (In Ita Nos.125 & 126/Chny/2019) िनधा"रण वष" / Assessment Years: 2011-12 & 2012-13 The Acit (Exemptions), M/S. Mahendra Educational May Flower Mid City Building, V. Trust, 1510, Trichy Road, Kalipatti Post, Attayampatti Via, Coimbatore – 641 018. Tiruchengode, Namakkal – 637 501. Pan: Aaaam2491C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रती क" ओर से/Assessee By : Shri N.V. Balaji, Advocate राज" की ओर से /Revenue By : Shri G. Chandrababu, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 28.01.2021 घोषणा क" तार"ख/Date Of Pronouncement : 11.02.2021

For Appellant: Shri N.V. Balaji, AdvocateFor Respondent: Shri G. Chandrababu, Addl.CIT

Section 1Section 11Section 12ASection 13Section 13(1)Section 13(1)(c)Section 13(1)(d)Section 13(2)(a)Section 13(2)(h)Section 13(3)

…e judgment of the Hon’ble jurisdictional High Court in the case of CIT Vs Working Women’s Forum (365 ITR 353 — SLP dismissed in (235 Taxman 516 SC) and that of the Hon’ble Bombay High Court in the case of DIT (E) Vs. Sheth Mafatlal Gagalbhai Foundation Trust [249 ITR 533 (Born)]. 7.2 I have perused the case laws relied on by the appellant. The Hon’ble jurisdictional High Court in the case of CIT Vs Working Women’s Forum [2014] 365 ITR 0353 has held that the denial of exemption should only be to the extent of the income which was violative of section 13 (1)(d) and not the total denial of exemption under section ]…

Income Tax Officer (Exemption), Jaipur vs. M/S Apollo Animal Medical Group Trust, Jaipur

In the result, the grounds of appeal taken by the Revenue are dismissed

ITA 960/JPR/2018[2008-09]Status: DisposedITAT Jaipur22 Jan 2021AY 2008-09

For Appellant: Shri Rajeev Sogani (C.A.) &For Respondent: Smt Runi Pal (Add.CIT) fu/kZkfjrh dh vksj ls@

Section 11Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 151

…ullers Charitable Institutions [2014] 363 ITR 230 was affirmed. • Madras High Court in the case of CIT vs Working Women Forum [2014] 365 ITR 353 (Madras) • Bombay High Court in the case of DIT (Exemptions) v. Sheth Mafatlal Gagalbhai Foundation Trust [2001] 249 ITR 533/114 Taxman 19 (Bom.) ITA No. 960/JP/2018 & CO No.05/JP/2020 26 M/s Apollo Animal Medical Group Trust vs. ITO (E) In view of the above, it was submitted that the action of ld. AO is illegal, against the facts of the case and, therefore, department’s ground deserves to be rejected 25. We have heard the rival contentions and perused the material…

J.R.D Tata Trust, Mumbai vs. CIT (E), Mumbai

In the result, the appeal is allowed

ITA 3738/MUM/2019[2014-15]Status: DisposedITAT Mumbai28 Dec 2020AY 2014-15

Section 12ASection 13(1)(c)Section 143(3)Section 263

…ort of this consequence of investment being in violation of the provisions of Section 11(5), we may draw support from the following observations made by Hon’ble jurisdictional High Court, in the case of DIT Vs Sheth Mafatlal Gaganbhai Foundation Trust [(2001) 249 ITR 533 (Bom)]: In other words, only the non-exempt income portion would fall in the net of tax as if it was the income of an AOP. Section 11(5) lays down various modes or forms in which a trust is required to deploy its funds. Section 13(1) lays down cases in which section 11 shall not apply. Under section 13(1)(d)(iii), it has been laid down that any s…

Ratan Tata Trust, Mumbai vs. CIT (E), Mumbai

In the result, the appeal is allowed

ITA 3737/MUM/2019[2014-15]Status: DisposedITAT Mumbai28 Dec 2020AY 2014-15

Section 12ASection 13(1)(c)Section 143(3)Section 263

…ort of this consequence of investment being in violation of the provisions of Section 11(5), we may draw support from the following observations made by Hon’ble jurisdictional High Court, in the case of DIT Vs Sheth Mafatlal Gaganbhai Foundation Trust [(2001) 249 ITR 533 (Bom)]: In other words, only the non-exempt income portion would fall in the net of tax as if it was the income of an AOP. Section 11(5) lays down various modes or forms in which a trust is required to deploy its funds. Section 13(1) lays down cases in which section 11 shall not apply. Under section 13(1)(d)(iii), it has been laid down that any s…

Deputy Commissioner of Income Tax (E), Circle, Jaipur vs. Mahatma Gandhi Charitable Society for Education and Research, Jaipur

In the result, the appeal filed by the Revenue is partly allowed for Statistical purposes with no order as to cost

ITA 359/JPR/2019[2015-16]Status: DisposedITAT Jaipur23 Jan 2020AY 2015-16

For Appellant: Shri P.C. Parwal, CAFor Respondent: Smt.Runi Paul, JCIT DR fu/kZkfjrh dh vksj ls@

Section 11Section 13Section 143(3)Section 40A(3)

…s Fr. Mullers Charitable Institutions (2014) 227 Taxman 369 (SC) CIT vs Fr. Mullers Charitable Institutins(2014) 363 ITR 230 (Kar.) CIT vs Orpat Charitable Trust (2015) 230 Taxman 0066 (Guj) H.C. DIT (Exemption) vs Sheth Mafatlal Gagalbhai Foundation Trust,249 ITR 533 (Bom.) 7 The DCIT (Exemptions) Circle – Jaipur vs Mahatama Gandhi Charitable Society for Education and Resarch, Jaipur M/s. Santokba Durlabhji Trust Fund vs ITO in ITA No. 169/JP/2012 for A.Y. 2008-09 dated 5-11-2014. Jamsedji Tata Trust vs JDIT (Exem.) 101 DTR 305 / 148 ITD 388 (Mum) (Trib.) Considering all these facts, I find that the entire…

Kohinoor Education Trust, Mumbai vs. Asst CIT (E) 1(1), Mumbai

In the result, the appeal is partly allowed

ITA 1359/MUM/2017[2013-14]Status: DisposedITAT Mumbai27 Dec 2019AY 2013-14

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2013-14 Kohinoor Education Trust, The Assistant Commissioner Of Kohinoor Corporate Office, Vs. Income Tax (E)-1(1), Senapati Bapat Marg, Dadar (W), Mumbai. Mumbai-400 028. Pan No. Aabtk2616D Appellant Respondent Assessee By : Shri Jayesh Dadia, Ar Revenue By : Shri K. Bhoopathi, Dr Date Of Hearing : 13/11/2019 Date Of Pronouncement : 27/12/2019 Order Per N.K. Pradhan, Am This Is An Appeal Filed By The Assessee. The Relevant Assessment Year Is 2013-14. The Appeal Is Directed Against The Order Passed By The Commissioner Of Income Tax(Appeals)-1, Mumbai [In Short ‘Cit(A)’] & Arises Out Of The Assessment Completed U/S 143(3) Of The Income Tax Act 1961, (The ‘Act’). 2. The 1St Ground Of Appeal The Ld Cit(A| Has Erred In Law & On The Facts Of The Case In Confirming The Action Of The Assessing Officer In Denying Exemption Under Section 11 & 12 Of The Income Tax Act. The Action Is Unjustified & Unwarranted.

For Appellant: Shri Jayesh Dadia, ARFor Respondent: Shri K. Bhoopathi, DR

Section 1Section 11Section 12ASection 13Section 13(2)(e)Section 13(3)Section 143(3)

…ee relies on the decision in Jamsetji Tata Trust v. Joint Director of Income Tax (2014) 44 taxmann.com 447 (Mumbai-Trib.); Gurdayal Berlia Charitable Trust v. 5th ITO (1990) 34 ITD 489 (Bom); DIT (Exemption) v. Sheth Mafatlal Gagalbhai Foundation Trust (2001) 249 ITR 533 (Bom); CIT v. Fr. Mullers Charitable Institutions (2014) 51 taxmann.com 378 (SC). Relying on the above decisions and filing a copy of it, the Ld. counsels submits that in case of a charitable trust, it is only income from investment or deposit which has been made in violation of section 11(5) that is liable to be taxed and violation u/s 13(1)(d)…