Agappa Child Centre v. CIT

ITA 93/CHNY/2019[2013-14]Status: DisposedITAT Chennai19 Jan 2026AY 2013-14

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

DCIT, Central Cir-2(4), Chennai vs. D R Balakrishna Raja, Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 92/CHNY/2019[2012-13]Status: DisposedITAT Chennai19 Jan 2026AY 2012-13

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

DCIT, Central Cir-2(4), Chennai vs. D R Balakrishna Raja, Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 91/CHNY/2019[2011-12]Status: DisposedITAT Chennai19 Jan 2026AY 2011-12

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

DCIT, Central Cir-2(4), Chennai vs. D R Balakrishna Raja, Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 3344/CHNY/2018[2013-14]Status: DisposedITAT Chennai19 Jan 2026AY 2013-14

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

D R Balakrishna Raja, Chennai vs. ACIT, Central Cir-3(3), Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 3343/CHNY/2018[2012-13]Status: DisposedITAT Chennai19 Jan 2026AY 2012-13

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

D R Balakrishna Raja, Chennai vs. ACIT, Central Cir-3(3), Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 3342/CHNY/2018[2011-12]Status: DisposedITAT Chennai19 Jan 2026AY 2011-12

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

D R Balakrishna Raja, Chennai vs. ACIT, Central Cir-3(3), Chennai

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

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunathaआयकर अपील सं./Ita Nos.:3342 To 3344/Chny/2018 "नधा%रण वष% / Assessment Years: 2011-12 To 2013-14 Shri. D. R. Balakrishna Raja, Acit, 9/16, Venkatesan Street, Vs. Central Circle -3(3), T.Nagar, Chennai. Chennai – 600 017. [Pan:Agwpd-2354-E] (()यथ'/Respondent) (अपीलाथ'/Appellant) आयकर अपील सं./Ita Nos.:91 To 94/Chny/2019 "नधा%रण वष% / Assessment Years: 2011-12 To 2014-15 Dcit, Shri D. R. Balakrishna Raja, Central Circle -2(4), Vs. 9/16, Venkatesan Street, Chennai. T.Nagar, Chennai – 600 017. [Pan:Agwpd-2354-E] (अपीलाथ'/Appellant) (()यथ'/Respondent) Assessee By : Shri. K.G.Raghunath, Advocate Department By : Shri. A R V Sreenivasan, Cit. सुनवाई क5 तार"ख/Date Of Hearing : 27.10.2025 घोषणा क5 तार"ख/Date Of Pronouncement : 19.01.2026 आदेश /O R D E R Per Bench:

For Appellant: Shri. K.G.Raghunath, AdvocateFor Respondent: Shri. A R V Sreenivasan, CIT

ITA 1992/BANG/2024[2018-19]Status: DisposedITAT Bangalore19 Dec 2025AY 2018-19

…y or indirectly for the benefit of any member of the Hindu undivided family or any relative of any member of the family” 3.4 The Id. CIT(A) has not appreciated the fact that the judgement of Kerala High Court in the case of Alagappa Child Centre Vs CIT (1997) 226 ITR 211 (Ker), wherein the trust purchased a refrigerator for its own use, however, before the completion of the trust buildings, the trust kept the said refrigerator at the residence of the managing trustee of the trust. Exemption to the trust under section 11 of the Act, was denied on the ground that use of refrigerator by the managing trustee was viol…

Income Tax Officer, Exemptions Ward-3, Bengaluru vs. Sarakki Educational Society, Bengaluru

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubey

For Appellant: Sri C. Ramesh, A.RFor Respondent: Sri Subramanian, D.R

Section 11Section 12ASection 13Section 13(3)Section 143(2)Section 250

…ive and unreasonable and such quantum of profits in the hands of the company in excess of 5% is treated as non-application of income. Further, the AO relied upon the decision of the Hon’ble Kerala High Court in the case of M/s. Agappa Child Centre reported in 226 ITR 211 and the decision of the Hon’ble Andhra Pradesh High Court in the case of M/s. AWARE reported in 263 ITR 43 and held that for the purpose of section 13(1)(c) of the Act, the word “benefit” is not limited to advantage of pecuniary nature alone but extends to any intangible and indirect benefit also and accordingly the amount which is being treated…

Income Tax Officer, Exemptions, Ward-3, Bengaluru vs. Sarakki Education Society, Bengaluru

ITA 1991/BANG/2024[2017-18]Status: DisposedITAT Bangalore19 Dec 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubey

For Appellant: Sri C. Ramesh, A.RFor Respondent: Sri Subramanian, D.R

Section 11Section 12ASection 13Section 13(3)Section 143(2)Section 250

…ive and unreasonable and such quantum of profits in the hands of the company in excess of 5% is treated as non-application of income. Further, the AO relied upon the decision of the Hon’ble Kerala High Court in the case of M/s. Agappa Child Centre reported in 226 ITR 211 and the decision of the Hon’ble Andhra Pradesh High Court in the case of M/s. AWARE reported in 263 ITR 43 and held that for the purpose of section 13(1)(c) of the Act, the word “benefit” is not limited to advantage of pecuniary nature alone but extends to any intangible and indirect benefit also and accordingly the amount which is being treated…

M/S. Sarakki Educational Society, Bangalore vs. Income Tax Officer, Ward-3(Exemtions), Bangalore

ITA 1974/BANG/2024[2018-19]Status: DisposedITAT Bangalore19 Dec 2025AY 2018-19

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubey

For Appellant: Sri C. Ramesh, A.RFor Respondent: Sri Subramanian, D.R

Section 11Section 12ASection 13Section 13(3)Section 143(2)Section 250

…ive and unreasonable and such quantum of profits in the hands of the company in excess of 5% is treated as non-application of income. Further, the AO relied upon the decision of the Hon’ble Kerala High Court in the case of M/s. Agappa Child Centre reported in 226 ITR 211 and the decision of the Hon’ble Andhra Pradesh High Court in the case of M/s. AWARE reported in 263 ITR 43 and held that for the purpose of section 13(1)(c) of the Act, the word “benefit” is not limited to advantage of pecuniary nature alone but extends to any intangible and indirect benefit also and accordingly the amount which is being treated…

M/S. Sarakki Educational Society, Bangalore vs. Income Tax Officer, Ward -3 (Exemptions), Bangalore

ITA 1973/BANG/2024[2017-18]Status: DisposedITAT Bangalore19 Dec 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubey

For Appellant: Sri C. Ramesh, A.RFor Respondent: Sri Subramanian, D.R

Section 11Section 12ASection 13Section 13(3)Section 143(2)Section 250

…ive and unreasonable and such quantum of profits in the hands of the company in excess of 5% is treated as non-application of income. Further, the AO relied upon the decision of the Hon’ble Kerala High Court in the case of M/s. Agappa Child Centre reported in 226 ITR 211 and the decision of the Hon’ble Andhra Pradesh High Court in the case of M/s. AWARE reported in 263 ITR 43 and held that for the purpose of section 13(1)(c) of the Act, the word “benefit” is not limited to advantage of pecuniary nature alone but extends to any intangible and indirect benefit also and accordingly the amount which is being treated…

M/S Aryans Educational and Charitable Trust, Mohali vs. DCIT, C-1, (E), Chandigarh

In the result, the appeal of the Assessee is partly allowed

ITA 823/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh25 Jul 2024AY 2015-16

Bench: Shri A.D. Jain & Dr Krinwant Sahayआयकर अपील सं./ Ita No. 823/Chd/2019 "नधा"रण वष" / Assessment Years : 2015-16 M/S Aryans Educational & Vs. The Dcit, बनाम Charitable Trust, Circle-1 (Exemptions), # 2129, Phase-10, Chandigarh Mohali "थायी लेखा सं./Pan No: Aabta7550L अपीलाथ"/ Appellant ""यथ"/ Repsondent

For Appellant: Sh. Tej Mohan, Singh, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11(5)Section 12ASection 13Section 13(1)(c)Section 13(3)(c)

…ns guiding forfeiture of exemption needs to be well understood by assessee seeking exemption. Similar issue of advancing undue benefit to managing trustee covered u/s 13(3) of the Act was before Kerala High Court in case of Agappa Child Centre vs. CIT [1997] 092 Taxmann 327 dated 08.08.1996, wherein the court held that property of trust used for benefit of a prohibited person mentioned u/s 13(3), would result in cancellation of exemption of trust. It is also the case that the trust has attempted to by pass the restriction placed upon by the bank that the unsecured loans from the trustee shall not diminish till th…

Parul University, Vadodara vs. The Dy.CIT, Exemption Circle-1, Ahmedabad

Appeals are allowed

ITA 993/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 992/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

…the Act and as a result thereof, exemption under section 11 of the Act has been denied to the total income of the trust/institution. One such instance is provided by the judgement of Hon’ble Kerala High Court, in the case of Agappa Child Centre Vs CIT [1997] 226 ITR 211 (Ker). In this case the assessee purchased a refrigerator and kept it at the residence of its managing trustee. As the trustee was enjoying the use of the property of the trust, the ITO held that the provisions of Section 13 were attracted. The Court observed that from a bare reading of the provisions, it can be inferred that the legislative emph…

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 991/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

…the Act and as a result thereof, exemption under section 11 of the Act has been denied to the total income of the trust/institution. One such instance is provided by the judgement of Hon’ble Kerala High Court, in the case of Agappa Child Centre Vs CIT [1997] 226 ITR 211 (Ker). In this case the assessee purchased a refrigerator and kept it at the residence of its managing trustee. As the trustee was enjoying the use of the property of the trust, the ITO held that the provisions of Section 13 were attracted. The Court observed that from a bare reading of the provisions, it can be inferred that the legislative emph…

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 1019/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

…the Act and as a result thereof, exemption under section 11 of the Act has been denied to the total income of the trust/institution. One such instance is provided by the judgement of Hon’ble Kerala High Court, in the case of Agappa Child Centre Vs CIT [1997] 226 ITR 211 (Ker). In this case the assessee purchased a refrigerator and kept it at the residence of its managing trustee. As the trustee was enjoying the use of the property of the trust, the ITO held that the provisions of Section 13 were attracted. The Court observed that from a bare reading of the provisions, it can be inferred that the legislative emph…

DCIT, Central Circle-1(2), Ahmedabad, Aayakar Bhawan, Ashram Road vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 1018/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

…the Act and as a result thereof, exemption under section 11 of the Act has been denied to the total income of the trust/institution. One such instance is provided by the judgement of Hon’ble Kerala High Court, in the case of Agappa Child Centre Vs CIT [1997] 226 ITR 211 (Ker). In this case the assessee purchased a refrigerator and kept it at the residence of its managing trustee. As the trustee was enjoying the use of the property of the trust, the ITO held that the provisions of Section 13 were attracted. The Court observed that from a bare reading of the provisions, it can be inferred that the legislative emph…

DCIT, Central Circle1(2), Ahmedabad vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member