B.N. Gamadia Parsi Hunnarshala v. Asstt. DIT (Exemption)

77 TTJ 274Income Tax Appellate Tribunal2002#8540 most cited

What is B.N. Gamadia Parsi Hunnarshala v. Asstt. DIT (Exemption) authority for?

Exemption under Section 11 of the Income Tax Act, 1961, is available only on actual 'income' and not on 'deemed income' arising under Section 11(3), meaning an assessee cannot claim the benefit of accumulation for 'deemed income'.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2026.

Also referred to as

B.N. Gamadia Parsi Hunnarshala · Section 11 · Section 11(3) · Section 11(2) · deemed income · charitable trust · accumulation of income · exemption availability · taxable income

Sections most often in play

Section 11Section 234ASection 234BSection 11(1)(a)Section 11(2)Section 11(3)Section 11(3)(c)Section 12

Issues it is cited on

section 11(3)section 11(2)section 11(1)(a)section 11(1)section 234acommissioner (appeals)section 11section 12previous yearprescribedsection 250total income

Judgments citing B.N. Gamadia Parsi Hunnarshala v. Asstt. DIT (Exemption)

Rai Sahab Bhaiyalal Dubey Educational and Medical Charitable Trust, Jabalpur vs. Income Tax Officer (Exemption), Jabalpur

In the result, the appeal is partly allowed for statistical purposes

ITA 186/JAB/2024[2020-21]Status: DisposedITAT Jabalpur10 Mar 2026AY 2020-21

Bench: Shri Anadee Nath Misshra

Section 11Section 11(2)Section 11ASection 12ASection 143(1)

…e debatable that cannot be adjudicated under section 143(1) of the Act. 6. On the other hand, the ld.DR relied upon the order of the Revenue authorities. He placed on record copy of ITAT's order in the case of the Trustees, The B.N. Gamadia Parsi Hunnarshala, 77 TTJ 274 (Mum-Trib.) We would like to reproduce brief order of the Hon'ble Kolkatta High Court in the case of CIT Vs. Natwarlal NCH Chowdhury Charity Trust (supra), which reads as under: "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee's right to accumulate 25% of the total income of…

Trust Fund for Empowerment of Persons With Disabilities, New Delhi vs. ACIT (Exemptions), New Delhi

ITA 1453/DEL/2019[2015-16]Status: DisposedITAT Delhi10 Jul 2025AY 2015-16

Bench: Shri S Rifaur Rahman & Shri Sudhir Pareek

For Appellant: NoneFor Respondent: Ms. Monika Singh, CIT(DR)
Section 11Section 11(2)Section 11(3)Section 11(3)(c)Section 234ASection 271(1)(c)

…. 5.1.4 The other issue for consideration is whether 15% accumulation as claimed by the assessee will be allowed before taxing the unutilized amount in terms of section 11(3)(c). In the case of B.N. Gamadia Parsi Hunnarshala v. Asstt. DIT (Exemption) [(2002) 77 TTJ 274 (Mum.)], the assessee was a trust established with the object of carrying on charitable activities. In the assessment year 1983-84, it was allowed to accumulate a particular amount under section 11(2). In order to avail the benefit of section 11, the assessee had to utilize accumulated amount for the specified purposes within 10 years from the dat…

Subodh Gupta, Delhi vs. ACIT, New Delhi

ITA 1453/DEL/2015[2009-10]Status: DisposedITAT Delhi14 Feb 2025AY 2009-10

Bench: Shri S Rifaur Rahman & Shri Sudhir Pareek

For Appellant: NoneFor Respondent: Ms. Monika Singh, CIT(DR)
Section 11Section 11(2)Section 11(3)Section 11(3)(c)Section 234ASection 271(1)(c)

…. 5.1.4 The other issue for consideration is whether 15% accumulation as claimed by the assessee will be allowed before taxing the unutilized amount in terms of section 11(3)(c). In the case of B.N. Gamadia Parsi Hunnarshala v. Asstt. DIT (Exemption) [(2002) 77 TTJ 274 (Mum.)], the assessee was a trust established with the object of carrying on charitable activities. In the assessment year 1983-84, it was allowed to accumulate a particular amount under section 11(2). In order to avail the benefit of section 11, the assessee had to utilize accumulated amount for the specified purposes within 10 years from the dat…

India Itme Sociey, Mumbai vs. CIT (Exemption), Mumbai

In the result, Appeal of assessee is allowed for both the years

ITA 722/MUM/2021[2016-17]Status: DisposedITAT Mumbai27 Feb 2023AY 2016-17

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Mr. Vipul Joshi, ARFor Respondent: Mr. Sandeep Raj, CIT DR
Section 11Section 11(2)Section 12ASection 143Section 143(3)Section 263Section 80G

…amount of accumulation not utilized become deemed income. Deemed income cannot be accumulated. Only real and actual income can be accumulated. Such is the view ITA no.721 & 722/Mum/2021 India ITME Society; A.Y. 15–16 & 16–17 of ITAT in B N Gamadia Parsi Trust 77 TTJ 274 and Kol High court in 199 ITR 215 in Tantias case as well as Madras High court in Rao Bahadur's case 135 ITR 485. Thus on the debatable issue, when LD AO has taken one view, revision u/s 263 of the Act is prohibited. 015. The LD CIT DR relied up on the order of the LD PCIT. He submitted that view that is unsustainable taken by the LD AO makes the…

India Itme Sociey, Mumbai vs. CIT (Exemption), Mumbai

In the result, Appeal of assessee is allowed for both the years

ITA 721/MUM/2021[2015-16]Status: DisposedITAT Mumbai27 Feb 2023AY 2015-16

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Mr. Vipul Joshi, ARFor Respondent: Mr. Sandeep Raj, CIT DR
Section 11Section 11(2)Section 12ASection 143Section 143(3)Section 263Section 80G

…amount of accumulation not utilized become deemed income. Deemed income cannot be accumulated. Only real and actual income can be accumulated. Such is the view ITA no.721 & 722/Mum/2021 India ITME Society; A.Y. 15–16 & 16–17 of ITAT in B N Gamadia Parsi Trust 77 TTJ 274 and Kol High court in 199 ITR 215 in Tantias case as well as Madras High court in Rao Bahadur's case 135 ITR 485. Thus on the debatable issue, when LD AO has taken one view, revision u/s 263 of the Act is prohibited. 015. The LD CIT DR relied up on the order of the LD PCIT. He submitted that view that is unsustainable taken by the LD AO makes the…

Shri Prabhas Patan Jain Swetambermurti Pujak Sangh, Rajkot vs. The Income Tax Officer (Exemption), Ward-2, Rajkot

In the result, the appeal of the assessee is dismissed for assessment year 2016-17

ITA 216/RJT/2019[2016-17]Status: DisposedITAT Rajkot22 Feb 2023AY 2016-17

Bench: Shri Waseem Ahmed (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

For Appellant: Shri G.R. Sanghavi, A.RFor Respondent: Shri B.D. Gupta, Sr. D.R
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 11(3)Section 250

…dered view, such a practise cannot be accepted and any reading of the provisions of law, which may perpetuate such a practise cannot be accepted by us as well. 8.5 Thirdly, the Mumbai ITAT in the case of The Trustees, TheB.N. Gamadia Parsi Hunnarshala [2002] 77 TTJ 274 (Mum.) held that exemption under section 11 is available only on ‘income’ within meaning of section and not on ‘deemed income’ and, therefore, an assessee cannot claim benefit or accumulation with respect to ‘deemed income”. The ITAT in the above case distinguished the decision of Natwarlal supra with the following observations: 11. In the case o…

Shri Prabhas Patan Jain Swetambermurti Pujak Sangh, Rajkot vs. The Income Tax Officer (Exemption), Ward-2, Rajkot

In the result, the appeal of the assessee is dismissed for assessment year 2016-17

ITA 377/RJT/2018[2015-16]Status: DisposedITAT Rajkot22 Feb 2023AY 2015-16

Bench: Shri Waseem Ahmed (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

For Appellant: Shri G.R. Sanghavi, A.RFor Respondent: Shri B.D. Gupta, Sr. D.R
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 11(3)Section 250

…dered view, such a practise cannot be accepted and any reading of the provisions of law, which may perpetuate such a practise cannot be accepted by us as well. 8.5 Thirdly, the Mumbai ITAT in the case of The Trustees, TheB.N. Gamadia Parsi Hunnarshala [2002] 77 TTJ 274 (Mum.) held that exemption under section 11 is available only on ‘income’ within meaning of section and not on ‘deemed income’ and, therefore, an assessee cannot claim benefit or accumulation with respect to ‘deemed income”. The ITAT in the above case distinguished the decision of Natwarlal supra with the following observations: 11. In the case o…

City Manager Association, Ahmedabad vs. The DCIT, CPC, Banglore

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

ITA 29/AHD/2021[2017-18]Status: HeardITAT Ahmedabad15 Jun 2022AY 2017-18
For Appellant: Ms. Arti N. Shah, A.RFor Respondent: Shri Atul Pandey, SR-D.R
Section 11Section 11(1)(A)Section 11(2)Section 11(3)(c)Section 111(1)(a)Section 12ASection 143Section 143(1)

…debatable that cannot be adjudicated under section 143(1) of the Act. 6. On the other hand, the ld. DR relied upon the order of the Revenue authorities. He placed on record copy of ITAT's order in the case of the Trustees, The B.N. Gamadia Parsi Hunnarshala, 77 TTJ 274 (Mum-Trib.) We would like to reproduce brief order of the Hon'ble Kolkatta High Court in the case of CIT Vs. Natwarlal Chowdhury Charity Trust (supra), which reads as under: I.T.A No. 29/Ahd/2021 A.Y. 2017-18 Page No. 6 City Manager Association vs. DCIT "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law…

The Nab Workshop for the Blind, Mumbai vs. DCIT(CPC), Banglore, Bangalore

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

ITA 1646/MUM/2020[2016-17]Status: DisposedITAT Mumbai09 Jun 2022AY 2016-17

Bench: Shri Pavan Kumar Gadale & Shri Gagan Goyalthe Nab Workshop For Vs. Dcit (Cpc) The Blind, 4Th Floor, Piramal Dr. Annie Besant Road, Chambers, Parel, Worli, Mumbai-400012. Mumbai – 400 030. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaatt3397F Appellant .. Respondent Appellant By : Shri. Gautam Nayak.Ar Respondent By : Shri. Pramod Nikalje.Dr Date Of Hearing 14.06.2022 Date Of Pronouncement 20.06.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeal)-1,Mumbai Passed U/S 143(1) & 250 Of The Act. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri. Gautam Nayak.ARFor Respondent: Shri. Pramod Nikalje.DR
Section 11(2)Section 11(3)Section 143(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER The NAB Workshop for Vs. DCIT (CPC) the Blind, 4th Floor, Piramal Dr. Annie Besant Road, Chambers, Parel, Worli, Mumbai-400012. Mumbai – 400 030. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAATT3397F Appellant .. Respondent Appellant by : Shri. Gautam Nayak.AR Respondent by : Shri. Pramod Nikalje.DR Date of Hearing 14.06.2022 Date of Pronouncement 20.06.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the Commissione…

City Manager Association, C/O. Amc., West Zone Officer, Ahmedabad vs. The DCIT, CPC, Banglore

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

ITA 1345/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad03 Jun 2022AY 2016-17

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2016-17 City Manager Association Dcit, Cpc Ahmedabad Municipal Corporation Vs Bangaluru. West Zone Office Usmanpura Cross Road Ahemdabad 380 013. Pan : Aaatc2293 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Ms.Arti N. Shah, Ar Revenue By : Shri Alpesh Parmar, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 05/04/2022 घोषणा क" तार"ख /Date Of Pronouncement: 03/06/2022 आदेश/O R D E R Per T.R. Senthil Kumar:

For Appellant: Ms.Arti N. Shah, ARFor Respondent: Shri Alpesh Parmar, Sr.DR
Section 11Section 11(1)Section 11(2)Section 143(1)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद "यायपीठ आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण अहमदाबाद "यायपीठ अहमदाबाद "यायपीठ ‘SMC’ अहमदाबाद। अहमदाबाद "यायपीठ अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Assessment Year : 2016-17 City Manager Association DCIT, CPC Ahmedabad Municipal Corporation Vs Bangaluru. West Zone Office Usmanpura Cross Road Ahemdabad 380 013. PAN : AAATC2293 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee by : M…

City Manager Association, C/O. Amc., West Zone Officer, Ahmedabad vs. ACIT, CPC, Banglore

In the result, appeal of the assessee is allowed

ITA 2337/AHD/2017[2015-16]Status: DisposedITAT Ahmedabad21 Aug 2019AY 2015-16

Bench: Shri Rajpal Yadav & Shri Pradipkumar Kediaआयकर अपील सं./ Ita No.2337/Ahd/2017 [Asstt.Year: 2015-16]

For Appellant: Smt.Arti Shah, ARFor Respondent: Shri Virendra Singh, Sr.DR
Section 11Section 11(1)(a)Section 11(3)Section 143(1)

…-आयकर अपील"य अ"धकरण, अहमदाबाद "यायपीठ - अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD – BENCH ‘SMC’ BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIPKUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.2337/Ahd/2017 [Asstt.Year: 2015-16] City Manager Association Vs. ACIT, CPC C/o. Ahmedabad Municipal Corpn Usmanpura Cross Road. West Zone Office PAN : AAATC 2293 H (Applicant) (Respondent) Assessee by : Smt.Arti Shah, AR Revenue by : Shri Virendra Singh, Sr.DR सुनवाई क" तार"ख/Date of Hearing : 08/08/2019 घोषणा क" तार"ख /Date of Pronouncement: 21/08/2019 आदेश/O R D E R PER RAJPAL YADAV, JU…

Abheraj Baldota Foundation, Hospet vs. Deputy Commissioner of Income Tax Circle-1, Bellary

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

ITA 947/BANG/2017[2008-09]Status: DisposedITAT Bangalore26 Jul 2019AY 2008-09

Bench: Shri B.R Baskaran & Smt. Beena Pillai

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Shri R.N Siddappaji, Addl. CIT (DR)
Section 11Section 11(2)Section 11(3)Section 143(1)Section 143(3)Section 154

…Calcutta High Court,the assessee should have been allowed deduction u/s 11(2) of the Act. 9. On the contrary, the ld DR placed his reliance on the decision rendered by Mumbai Benchof ITAT inthe case of The Trustees, the B.N.Gamadia Parsi Hunnarshalal (2002) 77 TTJ 274, wherein the Tribunal has expressed the view that deduction u/s 11(1) and 11(2) is allowed in respect of “income derived from property”. ITA No.947 & 948/Bang/2017 Page 6 of 17 However, the provision of sec. 11(3) of the Act uses the expression ‘income of such person’ in contradistinction to the words ‘income derived from property’ used in othe…

ACIT, Karnal vs. M/S Galaxy Global Educational Trsut, Kurukshetra

In the result both the appeals of the revenue are dismissed

ITA 2652/DEL/2013[2009-10]Status: DisposedITAT Delhi06 Feb 2017AY 2009-10

Bench: Shri P.K. Bansal & Shri. C.M. Gargassessment Year: 2009-10 Acit Galaxy Global Educational Trust Central Circle Village Dinarpur Vs. Karnal Kurukshetra

For Appellant: Sh. A.K. Saroha, CIT (DR)For Respondent: Sh. Amol Sinha, Advocate, Sh. Ashok Jain
Section 11Section 13Section 68Section 69Section 69C

…ITR 223 (Bombay), Hon’ble High Court of Delhi in the case of Moolchand Khairatiram Tust vs. DIT (E) reported as (2015) 59 taxman.com 398 (Del.) and order of ITAT Mumbai Bench “B” in the case of the Trustees, B.N. Gamadia Parsi vs. ADIT (E) reported as (2002) 77 TTJ 274 the Ld. DR submitted that the Revenue can take alternate plea for supporting action of the AO. He also contended that the assessee would not be entitled to exemption u/s 11 of the Act if its activities are outside scope of its objects. He also contended that benefit of section 11 is available on the income and not for deemed income. He lastly subm…