ACIT v. Surat City Gymkhana

300 ITR 214Supreme Court of India2008#832 most cited

What is ACIT v. Surat City Gymkhana authority for?

Once an institution receives registration under Section 12AA, the Assessing Officer must compute its income as per Section 11, focusing only on the application of income and not re-examining the charitable nature of its activities. The Supreme Court also clarified the meaning and scope of 'general public utility' under Section 2(15).

125

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2026.

Also referred to as

ACIT v. Surat City Gymkhana · Section 12AA registration · Section 11 income computation · charitable trust exemption · general public utility · Section 2(15) · AO powers · post-registration assessment · application of income · charitable purpose

Also reported as

170 Taxmann 61214 SCC 169

Sections most often in play

Section 12ASection 11Section 12Section 12AASection 143(3)Section 2(15)Section 13Section 142(1)
Read the full judgment

Issues it is cited on

section 10(20a)section 10(22)section 35acsection 11(4)section 10(20)section 12aa(3)section 115bbcsection 13(1)(d)section 13(3)section 35aanonymous donationsection 2(45)

Judgments citing ACIT v. Surat City Gymkhana

DCIT, Chennai vs. M/S. Willingdon Charitable Trust, Chennai

In the result, both the appeals of the Revenue are dismissed

ITA 2984/CHNY/2016[2006-07]Status: DisposedITAT Chennai19 Apr 2018AY 2006-07

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamony

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Smt. Ruby George, CIT
Section 143(3)Section 147

…ction 2(15) of the Act is not applicable at all. 35. Shri S. Sridhar, the Ld.counsel for the assessee, further submitted that the assessee-trust was established in the year 1924. Referring to the judgment of Apex Court in ACIT v. Surat City Gymkhana (2008) 300 ITR 214, the Ld.counsel submitted that once the assessee-trust was registered under Section 12AA of the Act and the registration continues till date, the A.O. cannot probe into the objects of the trust. What the Assessing Officer can do is he can verify whether the assessee is carrying on the activity in furtherance of its object for which it was esta…

The Cathedral Vidya Trust, Mumbai vs. ITO (E) 1(1), Mumbai

In the result, appeal filed by assessee is allowed

ITA 4958/MUM/2015[2011-12]Status: DisposedITAT Mumbai24 Oct 2017AY 2011-12

Bench: Shri P.K. Bansal, Vice- & Shri Pawan Singhthe Cathedral Vidya Trust Ito (Exemption)-1(1), 6, Purushottamdas Thakurdas Piramal Chamber, Lalbaug, Vs. Marg, Fort, Mumbai-400001 Mumbai. Pan: Aabtt5706B (Appellant) (Respondent)

For Respondent: Sh. H. N. Singh Sr. DR
Section 11Section 12ASection 13(2)(g)Section 13(3)Section 142(1)Section 143(3)Section 250Section 253Section 254(1)

…, the registration of the assessee/institution under section 12A is still valid and AO cannot deny the exemption under section 11 of the Act. In support of his submission, the ld. AR of the assessee relied upon the decision; (i) ACIT vs. Surat City Gymkhana (300 ITR 214) (SC), (ii) Hiralal Bhagwati vs. CIT (246 ITR 188) (Guj. HC), Stock Exchange Ahmedabad vs. ACIT (74 ITD 1) (Ahm. Trib.) & (iii) Gagan Education Society vs. ACIT (10 taxmann.com 156) (Agra Trib.). Secondly, merely charging fees, it should not impugn upon the eligibility for exemption under section 11 of the Act. The fee is charging for fulfilmen…

Sreema Mahila Samity, Nadia vs. D.C.I.T., Circle-Nadia, Nadia

In the result, the appeal of the assessee is dismissed

ITA 2826/KOL/2013[2009-2010]Status: DisposedITAT Kolkata13 Oct 2017AY 2009-2010
For Appellant: S/Shri K.M. Roy &For Respondent: Shri Sallong Yaden, Addl.CIT, ld.Sr.DR
Section 12ASection 143(2)Section 2

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Before: Shri P.M. Jagtap, Accountant Member and Shri S.S. Viswanethra Ravi, Judicial Member I.T.A No. 2826/Kol/2013 Assessment Year: 2009-10 Sreema Mahila Samity PAN: AAAAS4589H. Appellant Vs Deputy Commissioner of Income-tax, Circle-Nadia. Respondent For the Appellant : S/Shri K.M. Roy & P.S. Gupta, ld.ARs,ADvocate For the Respondent : Shri Sallong Yaden, Addl.CIT, ld.Sr.DR Date of hearing : 26-07-2017 Date of pronouncement : 13-10-2017 ORDER Shri S.S.Viswanethra Ravi, JM: This appeal by Assessee is arising out of order dated 17-10- 2013 of CI…

Kolkata Metropolitan Development Authority, Kolkata vs. J.C.I.T Range - 50, Kolkata

In the result, the appeals of the assessee in ITA Nos

ITA 724/KOL/2013[2007-08]Status: DisposedITAT Kolkata18 Aug 2017AY 2007-08

Bench: Hon’Ble Shri A.T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A Nos. 723 & 724/Kol/2013 Assessment Years : 2006-07 & 2007-08 Kolkata Metropolitan Development Authority -Vs- C.I.T.-Xvii, Kolkata [Pan: Aaalk 0714 F] (Appellant) (Respondent) I.T.A Nos. 523 & 524/Kol/2013 Assessment Years : 2006-07 & 2007-08 Kolkata Metropolitan Development Authority -Vs- J.C.I.T., Kolkata [Pan: Aaalk 0714 F] (Appellant) (Respondent) For The Appellant : Shri J.P. Khaitan, Sr. Counsel Of Assessee For The Respondent : Shri Anand R. Baiwar, Cit Date Of Hearing : 09.08.2017 Date Of Pronouncement : 18.08.2017

For Appellant: Shri J.P. Khaitan, Sr. Counsel of AssesseeFor Respondent: Shri Anand R. Baiwar, CIT
Section 12ASection 143(3)Section 148Section 263

…of the Act once done is a fait accompli and the AO cannot thereafter make further probe into the objects of the trust. Reliance in this regard is placed on the decision of the Hon'ble Apex Court rendered in the case of Asstt. CIT v.Surat City Gymkhana (2008) 300 ITR 214 (SC). Drawing analogy from this judgement, the logical inference could be that as long as the objects were charitable in nature in the earlier years and in the year in which registration u/s 12AA was granted, the existence of trust for charitable purposes in the earlier years cannot be doubted with. Even otherwise, no adverse findings were given…

Kolkata Metropolitan Development Authority, Kolkata vs. J.C.I.T Range - 50, Kolkata

In the result, the appeals of the assessee in ITA Nos

ITA 723/KOL/2013[2006-07]Status: DisposedITAT Kolkata18 Aug 2017AY 2006-07

Bench: Hon’Ble Shri A.T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A Nos. 723 & 724/Kol/2013 Assessment Years : 2006-07 & 2007-08 Kolkata Metropolitan Development Authority -Vs- C.I.T.-Xvii, Kolkata [Pan: Aaalk 0714 F] (Appellant) (Respondent) I.T.A Nos. 523 & 524/Kol/2013 Assessment Years : 2006-07 & 2007-08 Kolkata Metropolitan Development Authority -Vs- J.C.I.T., Kolkata [Pan: Aaalk 0714 F] (Appellant) (Respondent) For The Appellant : Shri J.P. Khaitan, Sr. Counsel Of Assessee For The Respondent : Shri Anand R. Baiwar, Cit Date Of Hearing : 09.08.2017 Date Of Pronouncement : 18.08.2017

For Appellant: Shri J.P. Khaitan, Sr. Counsel of AssesseeFor Respondent: Shri Anand R. Baiwar, CIT
Section 12ASection 143(3)Section 148Section 263

…of the Act once done is a fait accompli and the AO cannot thereafter make further probe into the objects of the trust. Reliance in this regard is placed on the decision of the Hon'ble Apex Court rendered in the case of Asstt. CIT v.Surat City Gymkhana (2008) 300 ITR 214 (SC). Drawing analogy from this judgement, the logical inference could be that as long as the objects were charitable in nature in the earlier years and in the year in which registration u/s 12AA was granted, the existence of trust for charitable purposes in the earlier years cannot be doubted with. Even otherwise, no adverse findings were given…

M/S. Mahasakti Foundation, Kalahandi vs. ACIT, Sambalpur

In the result, the appeals filed by the assessee are allowed

ITA 134/CTK/2015[2007-08]Status: DisposedITAT Cuttack06 Jun 2017AY 2007-08

Bench: S/Shri N.S Saini & Pavan Kumar Gadale

For Appellant: Shri P.K.Mishra, ARFor Respondent: Shri Kunal Singh, CIT DR
Section 11Section 12ASection 147Section 194ASection 201(1)Section 40

…Act once done is a fait accompli and the AO cannot thereafter make further probe into the objects of the trust. Reliance in this regard is placed on the decision of the Hon’ble Apex Court rendered in the case of ACIT vs Surat City Gymkhana reported in (2008) 300 ITR 214 (SC). Drawing analogy from this judgement, the logical inference could be that as long as the objects were charitable in nature in the earlier years and in the year in which registration u/s 12AA was granted, the existence of trust for charitable purposes in the earlier years cannot be doubted with. Even otherwise, no adverse findings were given…

Delhi Bureau of Text Books vs. Director of Income Tax(E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/807/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…Page 7 of 19 whether what was being carried on by the Assessee was a charitable activity under Section 2 (15) of the Act. The CIT (A) referred to the decision in ACIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC). 11. The CIT (A) further held that generation of income is no test in itself for determining the charitable nature of the activities. Earning of a surplus in working out the charitable purpose would not place the entity outside the purview of Section 2 (15) read with Sections 11 and 12 of the Act. The CIT (A) referred to the decision…

Delhi Bureau of Text Books vs. Director of Income Tax(E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/812/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…Page 7 of 19 whether what was being carried on by the Assessee was a charitable activity under Section 2 (15) of the Act. The CIT (A) referred to the decision in ACIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC). 11. The CIT (A) further held that generation of income is no test in itself for determining the charitable nature of the activities. Earning of a surplus in working out the charitable purpose would not place the entity outside the purview of Section 2 (15) read with Sections 11 and 12 of the Act. The CIT (A) referred to the decision…

Delhi Bureau of Text Books vs. Director of Income Tax (E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/811/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…Page 7 of 19 whether what was being carried on by the Assessee was a charitable activity under Section 2 (15) of the Act. The CIT (A) referred to the decision in ACIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC). 11. The CIT (A) further held that generation of income is no test in itself for determining the charitable nature of the activities. Earning of a surplus in working out the charitable purpose would not place the entity outside the purview of Section 2 (15) read with Sections 11 and 12 of the Act. The CIT (A) referred to the decision…

Delhi Bureau of Text Books vs. Director of Income Tax (E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/810/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…Page 7 of 19 whether what was being carried on by the Assessee was a charitable activity under Section 2 (15) of the Act. The CIT (A) referred to the decision in ACIT v. Surat City Gymkhana (2008) 300 ITR 214 (SC). 11. The CIT (A) further held that generation of income is no test in itself for determining the charitable nature of the activities. Earning of a surplus in working out the charitable purpose would not place the entity outside the purview of Section 2 (15) read with Sections 11 and 12 of the Act. The CIT (A) referred to the decision…

Mumbai Metroplitan Region Development Authority, Mumbai vs. DIT (E), Mumbai

In the result, appeal of the assessee is allowed

ITA 3690/MUM/2014[2009-10]Status: DisposedITAT Mumbai06 Apr 2017AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm Mumbai Metropolitan Vs. Director Of Income Tax Region Development (Exemptions), Mumbai Authority, Plot No. C-14 & 15, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 Pan/Gir No. Aaatm7106R Appellant) .. Respondent)

Section 11Section 12ASection 2(15)Section 263

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM Mumbai Metropolitan Vs. Director of Income Tax Region Development (Exemptions), Mumbai Authority, Plot No. C-14 & 15, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 PAN/GIR No. AAATM7106R Appellant) .. Respondent) Assessee by Shri S.E. Dastur with Shri Madhur Agarwal Revenue by Shri Sanjay Bahadur Date of Hearing 09/01/2017 Date of Pronouncement 06/04/2017 आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A) dated 28/03/2014 for the assessment…

Patanjali Yogpeeth (Nyas), Delhi vs. ADIT(Exemption), New Delhi

Appeal is allowed

ITA 2267/DEL/2013[2009-10]Status: DisposedITAT Delhi09 Feb 2017AY 2009-10

Bench: Shri I.C. Sudhir & Shri L. P. Sahu

For Appellant: Shri Ajay Vohra, Sr. Adv.; &For Respondent: Shri N. C. Swain, CIT [DR]
Section 11(1)(a)Section 11(5)Section 13Section 142Section 2(15)

…essment proceedings. It is not open to the assessing officer, in the assessment proceedings, to hold that the objects of the assessee are not charitable in nature. Reference, in this regard may be made to the following decisions: ACIT V. Surat City Gymkhana: 300 ITR 214 (SC) (Refer page 1066-1067 of case law  paperbook) Sonepat Hindu Educational and Charitable Society v. CIT.: 278 ITR 262 (P&H) (Refer  page 1068-1072 of caselaw paperbook)  Hiralal Bhagwati vs CIT: 246 ITR 188(Guj.)  Ananda Marga Pracharaka Sangha v. CIT: 218 ITR 254 (Cal) ITO v. Mrs. Dwarika Prasad Trust: 30 ITD 84 (Third Member)(Del.)  ITO…

DDIT (E) 1(1), Mumbai vs. Matunga Gymkhana, Mumbai

In the result, while of appeals of the Revenue are dismissed, that of assessee is allowed, as above

ITA 4768/MUM/2013[2006-07]Status: DisposedITAT Mumbai30 Nov 2016AY 2006-07

Bench: Shri G.S.Pannu & Shri Amarjit Singh

For Appellant: S/ Shri Arvind Sonde/For Respondent: Shri M.Rajan
Section 11Section 11(4)Section 12ASection 13Section 13(1)Section 143(3)

…function income, ignoring the fact that such income are earned from non-members". 5. "On the facts and in the circumstances of the case, and in law, the Ld. CIT(Appeals) erred in relying on the decision in the case of Surat City Gymkhana vs. ACIT reported in 300 ITR 214 wherein the decision has been mis-interpreted as the said judgement does not bar the AO from looking into the activities of the trust and whether the same pertains to objectives of the trust for which specific registration u/s.12A was granted". 6. The Appellant prays that the order of the Ld. Commissioner of Income- tax (Appeals)-I, Mumbai be set…

Matunga Gymkhana, Mumbai vs. ADIT (E) -I-(1), Mumbai

In the result, while of appeals of the Revenue are dismissed, that of assessee is allowed, as above

ITA 4468/MUM/2013[2009-10]Status: DisposedITAT Mumbai30 Nov 2016AY 2009-10

Bench: Shri G.S.Pannu & Shri Amarjit Singh

For Appellant: S/ Shri Arvind Sonde/For Respondent: Shri M.Rajan
Section 11Section 11(4)Section 12ASection 13Section 13(1)Section 143(3)

…function income, ignoring the fact that such income are earned from non-members". 5. "On the facts and in the circumstances of the case, and in law, the Ld. CIT(Appeals) erred in relying on the decision in the case of Surat City Gymkhana vs. ACIT reported in 300 ITR 214 wherein the decision has been mis-interpreted as the said judgement does not bar the AO from looking into the activities of the trust and whether the same pertains to objectives of the trust for which specific registration u/s.12A was granted". 6. The Appellant prays that the order of the Ld. Commissioner of Income- tax (Appeals)-I, Mumbai be set…

DDIT (E)-1(1), Mumbai vs. Matunga Gymkhana, Mumbai

In the result, while of appeals of the Revenue are dismissed, that of assessee is allowed, as above

ITA 1809/MUM/2010[2005-06]Status: DisposedITAT Mumbai30 Nov 2016AY 2005-06

Bench: Shri G.S.Pannu & Shri Amarjit Singh

For Appellant: S/ Shri Arvind Sonde/For Respondent: Shri M.Rajan
Section 11Section 11(4)Section 12ASection 13Section 13(1)Section 143(3)

…function income, ignoring the fact that such income are earned from non-members". 5. "On the facts and in the circumstances of the case, and in law, the Ld. CIT(Appeals) erred in relying on the decision in the case of Surat City Gymkhana vs. ACIT reported in 300 ITR 214 wherein the decision has been mis-interpreted as the said judgement does not bar the AO from looking into the activities of the trust and whether the same pertains to objectives of the trust for which specific registration u/s.12A was granted". 6. The Appellant prays that the order of the Ld. Commissioner of Income- tax (Appeals)-I, Mumbai be set…

Anand Education Society, New Delhi vs. ADIT (E), New Delhi

In the result, appeal of the assessee is allowed and that of the department is dismissed

ITA 761/DEL/2013[2009-10]Status: DisposedITAT Delhi15 Jul 2016AY 2009-10

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 761/Del/2013 : Asstt. Year : 2009-10 Anand Education Society, Vs Asstt. Director Of Income Tax(E) 30, Community Centre, Ashok Trust Circle-Ii, Vihar, Phase-I, New Delhi New Delhi-110052 (Appellant) (Respondent)

For Appellant: Sh. Ved Jain, Adv. & Ashish Chadha, CAFor Respondent: Sh. K. K. Jaiswal, DR
Section 11Section 12ASection 13(3)Section 147

…it is well settled law that once registration u/s.l2A(a) of the IT Act, 1961 stands granted, the charitable character of the activities of the Society/Trust cannot be challenged/doubted. In this regard reliance has been placed on ACIT Vs Surat State Gymkhana, 170 Taxmann 612 (SC), hold that the AO in the nature, once registration u/s. 12A of the IT Act, 1961 does not stand withdrawn. And reliance has also been placed in a very famous case of PUNJAB AND Haryana High Court in Sonipat Hindu Educational Charitable Society Vs. CIT, 278 ITR 262 (P&H), it was held that the registration of an institution u/s.12A of the I…

ADIT (E), New Delhi vs. Anand Education Society, New Delhi

In the result, appeal of the assessee is allowed and that of the department is dismissed

ITA 1005/DEL/2013[2009-10]Status: DisposedITAT Delhi15 Jul 2016AY 2009-10

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 761/Del/2013 : Asstt. Year : 2009-10 Anand Education Society, Vs Asstt. Director Of Income Tax(E) 30, Community Centre, Ashok Trust Circle-Ii, Vihar, Phase-I, New Delhi New Delhi-110052 (Appellant) (Respondent)

For Appellant: Sh. Ved Jain, Adv. & Ashish Chadha, CAFor Respondent: Sh. K. K. Jaiswal, DR
Section 11Section 12ASection 13(3)Section 147

…it is well settled law that once registration u/s.l2A(a) of the IT Act, 1961 stands granted, the charitable character of the activities of the Society/Trust cannot be challenged/doubted. In this regard reliance has been placed on ACIT Vs Surat State Gymkhana, 170 Taxmann 612 (SC), hold that the AO in the nature, once registration u/s. 12A of the IT Act, 1961 does not stand withdrawn. And reliance has also been placed in a very famous case of PUNJAB AND Haryana High Court in Sonipat Hindu Educational Charitable Society Vs. CIT, 278 ITR 262 (P&H), it was held that the registration of an institution u/s.12A of the I…

Principal Commissioner of Income Tax-2 vs. M/s Indur Green Power Private Limited

ITTA/627/2015HC Telangana02 Jun 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

M/S Society for Participatory Research in Asia, New Delhi vs. ITO (E), New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 2657/DEL/2013[2009-10]Status: DisposedITAT Delhi27 May 2016AY 2009-10

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2009-10 Society For Participatory Research In Vs. Income Tax Officer(E), Trust Ward-Iii, Asia, 42,Tughlakabad Instutional Area, New Delhi New Delhi Gir/Pan : Aaats1994H (Appellant) (Respondent)

Section 11Section 11(5)Section 12ASection 2(15)Section 80G

…section 11&12 of the I.T Act. 2 That the learned CIT (A) has not been appreciate that the registration granted to the Society under section 12A has not been withdrawn and as such it is a fact accompli that its objects are charitable, as held by Apex Court in 300 ITR 214. 3. That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that the assessee society is a charitable institution and is existing for charitable purpose within the meaning of section 2(15) of the I.T. Act. 4. That the finding of the Commissioner of Income Tax (Appeals) that the assessee is engaged in commercial activity is…

Asst CIT CC 43, Mumbai vs. Free Trade Union Multipurpose Project Trust, Mumbai

ITA 1336/MUM/2014[2003-04]Status: DisposedITAT Mumbai16 Dec 2015AY 2003-04

Bench: Sri Mahavir Singh, Jm & G. Manjunatha, Am

For Appellant: N. R Agrawal, ARFor Respondent: Pooja Swaroop, Sr.DR
Section 11Section 13(1)Section 132Section 139Section 143(2)Section 143(3)Section 147Section 148

…rrect and there is no violation of any of the provisions, but the AO has conveniently ignored all evidences to reject exemption u/s 11 of the Act. In this regard, he relied upon the decision of Hon’ble Supreme Court in the case of ACIT vs. Surat City Gymkhana 300 ITR 214(SC) and Hon’ble Karnataka HC in the case of CIT vs. Fr. Mullers Charitable Institution 363 ITR 230. 10. The Ld. DR on the other hand submitted that the issue has been already decided against the assessee by ITAT Mumbai “F” Bench in ITA No. 1336/Mum/2014, and without any change in facts no contrary decision can be taken in subsequent years. The Ld…