CIT v. Ganga Charity Trust Fund

162 ITR 612High Court1986#6876 most cited

What is CIT v. Ganga Charity Trust Fund authority for?

Payment of taxes under the Voluntary Disclosure of Income Scheme (VDIS) is to be treated as an application of income for trust purposes. The Gujarat High Court in CIT v. Ganga Charity Trust Fund (1986) 162 ITR 612 (Guj) followed the Madras High Court in Commissioner of Income Tax v. Janaki Ammal Ayya Nadar Trust (1985) 153 ITR 159 and the Andhra Pradesh High Court in Munna Lal and Sons v. CIT (1991) 187 ITR 378.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Ganga Charity Trust Fund · 162 ITR 612 · VDIS · application of income · charitable trust · Section 11(1)(a) · voluntary disclosure of income scheme

Sections most often in play

Section 10(23C)Section 11Section 11(1)(a)Section 11(5)Section 12ASection 12A(1)(ac)(i)Section 12AB(1)(b)(i)(B)Section 12AB(4)

Judgments citing CIT v. Ganga Charity Trust Fund

Shri Mukund Bhavan Trust, Pune vs. CIT(E), Pune

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

ITA 1552/PUN/2024[-]Status: DisposedITAT Pune29 Apr 2025

Bench: Shri R. K. Panda & Ms. Astha Chandrashri Mukund Bhavan Trust Cit (Exemption), Pune 1105, Raviwar Peth, Mukund Vs. Bhavan, Pune – 411002 Pan: Aaats5170R (Appellant) (Respondent) Assessee By : Shri V.L. Jain Department By : Shri Mallikarjun Utture, Cit Date Of Hearing : 05-02-2025 Date Of Pronouncement : 29-04-2025 O R D E R

For Appellant: Shri V.L. JainFor Respondent: Shri Mallikarjun Utture, CIT
Section 12ASection 13(1)(a)

…ed in 249 ITR 533 (Bom) v) CBDT Circular No.387, dated 07.06.1984 vi) CIT vs. ST. George Forana Church 170 ITR 62 (Ker) vii) CIT vs. Karimia Trust 302 ITR 56 (Jha) viii) CIT vs. Birla Janahit Trust 208 ITR 372 (Cal) ix) CIT vs. Ganga Charity Trust Fund (1986) 162 ITR 612 (Guj) x) CIT vs. Trustees of the Jadi Trust (1982) 133 ITR 494 (Bom) xi) CIT vs. Hindusthan Charity Trust 139 ITR 913 (Cal) xii) CIT vs. Sarladevi Sarabhai Trust 172 ITR 698 xiii) CIT vs. Shri Ram Memorial Foundation 269 ITR 35 (Del) xiv) CIT vs. Agricultural Produce and Market Committee 291 ITR 419 xv) CIT vs. Sun Engineering Works (P) Ltd. 198…

Shri Digamber Jain Atikshaya Keshtra, Padampua vs. ITO Exemption Ward 1, Kailash Heights

In the result appeal of the assessee is partly allowed

ITA 424/JPR/2022[2010-11]Status: DisposedITAT Jaipur22 Aug 2023AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rajeev sogani (C.A)&For Respondent: Ms. Monisha Choudhary (Addl.CIT)
Section 11(2)Section 147Section 148Section 151Section 24Section 253(3)

…ITR 513] (Cal)  CIT vs. Institute of Banking Personnel Selection (IBPS) [131 Taxman 386](Bom)  CIT vs. ShethManilalRancchoddasVishramBhawan Trust ]198 ITR 598] (Guj)  CIT vs. Raipur Pallottine Society [180 ITR 579] (MP)  CIT vs. Ganga Charity Trust Fund [162 ITR 612] (Guj)  CIT vs. Indian Jute Mills Association [134 ITR 68] (Cal)  Director of Income Tax (Exemption) vs. FramjeeCawasjee Institute [109 CTR 463] (Bom) 3.2. Hon’ble ITAT Jaipur in the case of Compucom Foundation- ITA NO. ITA NO: 900/JP/16 has also agreed to the above contention of the assessee – Copy enclosed [CLC 33-40]. 3.3. The other decision…

Deputy Commissioner of Income Tax, Pune vs. Mukund Bhavan Trust, Pune

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

ITA 374/PUN/2017[2012-13]Status: DisposedITAT Pune10 Aug 2022AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi

For Appellant: Shri V.L. JainFor Respondent: Shri Sardar Singh Meena
Section 11Section 12Section 12ASection 13Section 13(1)(c)Section 143(2)Section 143(3)

…आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.374/PUN/2017 धििाारण वर्ा / Assessment Year : 2012-13 Dy. Commissioner of Income Tax, (Exemption) Circle, Pune .......अपीलार्थी / Appellant बिाम / V/s. Shri Mukund Bhavan Trust, 1105, Raviwar Peth, Pune – 411002 PAN : AAATS5170R ……प्रत्यर्थी / Respondent Assessee by : Shri V.L. Jain Revenue by : Shri Sardar Singh Meena सुनवाई की तारीख / Date of Hearing : 03-08-2022 घोषणा की तारीख / Date of Pronou…

Gujarat State Land Development Corporation Ltd., Gandhinagar vs. The Dy.CIT, Gandhinagar Circle, Gandhinagar

Appeal is allowed

ITA 2632/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad23 Feb 2022AY 2012-13
For Appellant: Ms. Arti N. Shah, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 250(6)

…CIT vs. Giriraj Udyog (P.) Ltd. [2005] 273 ITR 495 (All.) (5) CIT vs. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) (6) Order of the High Court of Gujarat in case of Gujarat Insecticides Ltd. vs. Asst.CIT (7) CIT vs. Ganga Charity Trust Fund [1986] 162 ITR 612 (Guj.) (8) ACIT vs. Coromandal Investment P. Ltd. [2009] 316 ITR 104 (Guj.) 14. In view of the above, Ld. Counsel for the assessee contended that the addition made on interest income amounting to Rs. 6.14 crores was based on incorrect and improper appreciation of facts, was not as per law , was totally adhoc and therefore need to be deleted. 15…

Gujarat State Land Development Corporation Ltd., Gandhinagar vs. The Dy.CIT, Gandhinagar Circle, Gandhinagar

Appeal is allowed

ITA 2630/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad23 Feb 2022AY 2008-09
For Appellant: Ms. Arti N. Shah, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 250(6)

…CIT vs. Giriraj Udyog (P.) Ltd. [2005] 273 ITR 495 (All.) (5) CIT vs. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) (6) Order of the High Court of Gujarat in case of Gujarat Insecticides Ltd. vs. Asst.CIT (7) CIT vs. Ganga Charity Trust Fund [1986] 162 ITR 612 (Guj.) (8) ACIT vs. Coromandal Investment P. Ltd. [2009] 316 ITR 104 (Guj.) 14. In view of the above, Ld. Counsel for the assessee contended that the addition made on interest income amounting to Rs. 6.14 crores was based on incorrect and improper appreciation of facts, was not as per law , was totally adhoc and therefore need to be deleted. 15…

Gujarat State Land Development Corporation Ltd., Gandhinagar vs. The Dy.CIT, Gandhinagar Circle, Gandhinagar

Appeal is allowed

ITA 2538/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad23 Feb 2022AY 2011-12
For Appellant: Ms. Arti N. Shah, A.RFor Respondent: Shri Mohd Usman, CIT/DR
Section 250(6)

…CIT vs. Giriraj Udyog (P.) Ltd. [2005] 273 ITR 495 (All.) (5) CIT vs. Woodward Governor India P. Ltd. [2009] 312 ITR 254 (SC) (6) Order of the High Court of Gujarat in case of Gujarat Insecticides Ltd. vs. Asst.CIT (7) CIT vs. Ganga Charity Trust Fund [1986] 162 ITR 612 (Guj.) (8) ACIT vs. Coromandal Investment P. Ltd. [2009] 316 ITR 104 (Guj.) 14. In view of the above, Ld. Counsel for the assessee contended that the addition made on interest income amounting to Rs. 6.14 crores was based on incorrect and improper appreciation of facts, was not as per law , was totally adhoc and therefore need to be deleted. 15…

ITO (E) -1(1), Mumbai vs. Aditya Birla Foundation, Mumbai

In the result, Revenue’s appeal is partly allowed

ITA 6279/MUM/2019[2012-13]Status: DisposedITAT Mumbai28 Oct 2021AY 2012-13

Bench: The Hon'Ble Itat In Its Own Case In A.Y.2011-12 Which Is Pending For Adjudication."

Section 11Section 11(2)Section 13(3)Section 25

…tute of India [2019] 263 2011-12 Taxman 348 (SC) 2 CIT(A) erred in holding that 5. United Commercial Bank v. CIT (240 ITR 355)(SC) interest income is 6. J.K Bankers v. CIT (94 ITR 107) (All. HC) assessable on receipt basis 7. CIT v. Ganga Charity Trust Fund (162 ITR 612) (Guj) instead of Mercantile 3 Aditya Birla Foundation WITHOUT PREJUDICE, IN AY 2011-12, THE ITAT HAS HELD AS UNDER: 13. In this view of the matter the Assessing Officer is correct principally in holding that the assesses is required to account for the interest on accrual basis. However, we note that the assesses is accounting for the interest…

DCIT (E)-1(1), Mumbai vs. Aditya Birla Foundation, Mumbai

In the result, Revenue’s appeal is partly allowed

ITA 4065/MUM/2019[2011-12]Status: DisposedITAT Mumbai16 Jun 2021AY 2011-12
Section 11Section 11(2)Section 12ASection 13(3)Section 143(2)Section 143(3)Section 145Section 154Section 25

…followed by the assessee. In this regard he placed reliance upon the following case laws :- • PCIT Vs. Quest Investment Advisors (P) Ltd. (409 ITR 545) • CIT Vs. Nagri Mills Co. Ltd. (33 ITR 681) 5 Aditya Birla Foundation • CIT Vs. Ganga Charity Trust Fund (162 ITR 612) • DCIT Vs. M/s. G.D. Birla Medical Research & Education Foundation (ITA No. 4348/Mum/2018) 11. We have carefully considered the submission and perused the record. We note that the assessee is a trust. It is undisputed that the assessee is following mercantile system of accounting as per its audit report and accounts. However, it is also undisput…

M/S Cutchi Memon Union vs. The Deputy Director of Income Tax (Exemptions)

In the result, the appeal is disposed of

ITA/534/2013HC Karnataka28 Sept 2020

Bench: ALOK ARADHE,M.I.ARUN

Section 11Section 139Section 2(24)Section 2(45)Section 24Section 260Section 260A

…F INCOME-TAX VS. RAJASTHAN AND GUJARATI CHARITABLE FOUNDATION’, (2018) 402 ITR 441 (SC), ‘COMMISSIONEROF INCOME-TAX, CENTRAL-I, CALCUTTA VS. JAYASHREE CHARITY TRUST’, 159 ITR 280 (Cal), ‘COMMISSIONR OF INCOME-TAX VS. GANGA CHARITY TRUST FUND’, 162 ITR 612 (Guj), ‘COMMISSIONER OF INCOME-TAX VS. INSTITUTE OF BANKING PERSONNEL SELECTION (IBPS)’, (2003) 131 TAXMAN 386 (BOM.). 4. On the other hand, learned counsel for the revenue submitted that income of the trust has to be 7 computed as per the commercial principles and the amount is required to be expended for the purposes of the…

Sree Venkateswara Educational Trust, Krishnagiri vs. ITO, Exemptions Ward, Salem

In the result, both the appeals filed by the assessee are dismissed

ITA 1339/CHNY/2019[2013-14]Status: DisposedITAT Chennai30 Dec 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A. Nos. 1338 & 1339/Chny/2019 िनधा"रण वष"/Assessment Year: 2013-14 Sree Venkateswara Educational Trust, The Income Tax Officer, 655/20 & 600, Jagilkathirampatti Vs. Exemptions Ward, Village & Post, Pochampalli Taluk, Salem. Krishnagiri District 635 206. [Pan:Aaits5220J ] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Baskar, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 10.12.2019 घोषणा की तारीख /Date Of Pronouncement : 30.12.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: Both The Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals), Salem, Both Dated 25.03.2019 For The Assessment Year 2013-14 Passed Against The Order Under Section 143(1) Of The Income Tax Act, 1961 [“Act” In Short] As Well As Under Section 154 Of The Act. Against The Order Under Section 154 Of The Act, The Assessee Has Raised Following Grounds: “1. The Commissioner Of Income-Tax (Appeals) Is Not Justified In Holding That Non-Allowance Of Expenditure Incurred To Earn Gross Receipts From A College & School Involves A Complex & Debatable Legal Issue.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT
Section 12ASection 12A(2)Section 139(1)Section 139(4)Section 143(1)Section 154

…wed while computing taxable income. Income of a Trust to be assessed should be understood in its commercial sense and arrived at 3 I.T.A. Nos.1338 & 1339/Chny/19 in normal commercial manner (68 ITD 95 Mum, 135 ITR 485 Mad, 56 ITD 37 Del Trib, 125 ITR 531 MP, 162 ITR 612 Guj). 5. Application made for charitable purposes out of income earned alone is allowable, only if a Trust is registered under section 12AA and not the expenses incurred for purpose of earning income. 6. Observation of the Commissioner (Appeals) that "the appellant has not filed its Return of Income in time but filed only a belated Return" is not…

Sree Venkateswara Educational Trust, Krishnagiri vs. ITO, Exemptions Ward, Salem

In the result, both the appeals filed by the assessee are dismissed

ITA 1338/CHNY/2019[2013-14]Status: DisposedITAT Chennai30 Dec 2019AY 2013-14

Bench: Shri Inturi Rama Rao & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A. Nos. 1338 & 1339/Chny/2019 िनधा"रण वष"/Assessment Year: 2013-14 Sree Venkateswara Educational Trust, The Income Tax Officer, 655/20 & 600, Jagilkathirampatti Vs. Exemptions Ward, Village & Post, Pochampalli Taluk, Salem. Krishnagiri District 635 206. [Pan:Aaits5220J ] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Baskar, Advocate ""थ" की ओर से/Respondent By : Shri Ar.V. Sreenivasan, Jcit सुनवाई की तारीख/ Date Of Hearing : 10.12.2019 घोषणा की तारीख /Date Of Pronouncement : 30.12.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: Both The Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals), Salem, Both Dated 25.03.2019 For The Assessment Year 2013-14 Passed Against The Order Under Section 143(1) Of The Income Tax Act, 1961 [“Act” In Short] As Well As Under Section 154 Of The Act. Against The Order Under Section 154 Of The Act, The Assessee Has Raised Following Grounds: “1. The Commissioner Of Income-Tax (Appeals) Is Not Justified In Holding That Non-Allowance Of Expenditure Incurred To Earn Gross Receipts From A College & School Involves A Complex & Debatable Legal Issue.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT
Section 12ASection 12A(2)Section 139(1)Section 139(4)Section 143(1)Section 154

…wed while computing taxable income. Income of a Trust to be assessed should be understood in its commercial sense and arrived at 3 I.T.A. Nos.1338 & 1339/Chny/19 in normal commercial manner (68 ITD 95 Mum, 135 ITR 485 Mad, 56 ITD 37 Del Trib, 125 ITR 531 MP, 162 ITR 612 Guj). 5. Application made for charitable purposes out of income earned alone is allowable, only if a Trust is registered under section 12AA and not the expenses incurred for purpose of earning income. 6. Observation of the Commissioner (Appeals) that "the appellant has not filed its Return of Income in time but filed only a belated Return" is not…

The Commissioner of Income Tax vs. Sri Mettam Penchala Naidu

ITTA/59/2010HC Telangana18 Sept 2018

Bench: This Court That The 1St Assessment Order Of The Ito Was Passed On 28.03.1988, Which Was Challenged Before The Leaned Cit (A) & The Same Was Dismissed On 28.11.1988. Against The Said Order, The Assessee Filed An Appeal Before The Itat, Cuttack Bench, Cuttack, Which Was Dismissed On 19.01.1990. Thereafter, By Order Dated 13.12.1990 Passed In A Misc. Application, The Order Dated 19.01.1990 Was Recalled & The Matter Was Heard Afresh. Again On 10.05.1991, Learned Tribunal Decided The Matter & Allowed The Exemption To The Assessee. The Revenue Filed Writ Petition Before This Court Challenging The Rectification Order Dated 13.12.1990. This Court On 02.12.1991 Allowed The Writ Petition & Quashed The Recalling Order Dated 13.12.1990 As Well As Its Substantive Order Dated

Section 254(2)

…e parties before the lower forums; and even before framing the issue, the Tribunal had prejudged the matter; (iii) the assessee had pleaded its case with reference to a decision reported in CIT v. Ganga Charity Trust Fund (1986) 53 CTR (Guj) 365: (1986) 162 ITR 612 (Guj), which was not specifically dealt with by the Tribunal; (iv) contentions relating to acceptability of the method of accounting followed by the assessee were not considered in their proper perspective. The motion for rectification was opposed to by the Revenue. The Tribunal observed that the assessee's grievance was relating to r…

Sri Sri Gonesh Jew Thakur Trust, Kolkata vs. CIT(Exemptions), Kolkata

In the result, the appeal of assessee is allowed

ITA 938/KOL/2017[2012-13]Status: DisposedITAT Kolkata27 Jun 2018AY 2012-13

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 11Section 12ASection 143(3)Section 263

…payments cannot be excluded from exemption and are thus to be excluded from the income of the trust. Point No. 2 is answered accordingly.” 9. We also rely on the judgment of the Hon’ble Gujarat High Court in the case of CIT Vs. Ganga Charity Trust Fund (1986) 162 ITR 612 wherein the Hon’ble High Court allowing the payment of income tax as and by way of expenditure from the total income held as follows: “We are, therefore, of the view that the Tribunal was right in coming to the conclusion that the income derived from trust property must be determined on commercial principles and in doing so all outgoings, inclu…

The Commissioner of Income Tax III vs. Sri Sudhir Sanghi

ITTA/58/2010HC Telangana21 Mar 2016

Bench: This Court That The 1St Assessment Order Of The Ito Was Passed On 28.03.1988, Which Was Challenged Before The Leaned Cit (A) & The Same Was Dismissed On 28.11.1988. Against The Said Order, The Assessee Filed An Appeal Before The Itat, Cuttack Bench, Cuttack, Which Was Dismissed On 19.01.1990. Thereafter, By Order Dated 13.12.1990 Passed In A Misc. Application, The Order Dated 19.01.1990 Was Recalled & The Matter Was Heard Afresh. Again On 10.05.1991, Learned Tribunal Decided The Matter & Allowed The Exemption To The Assessee. The Revenue Filed Writ Petition Before This Court Challenging The Rectification Order Dated 13.12.1990. This Court On 02.12.1991 Allowed The Writ Petition & Quashed The Recalling Order Dated 13.12.1990 As Well As Its Substantive Order Dated

Section 254(2)

…e parties before the lower forums; and even before framing the issue, the Tribunal had prejudged the matter; (iii) the assessee had pleaded its case with reference to a decision reported in CIT v. Ganga Charity Trust Fund (1986) 53 CTR (Guj) 365: (1986) 162 ITR 612 (Guj), which was not specifically dealt with by the Tribunal; (iv) contentions relating to acceptability of the method of accounting followed by the assessee were not considered in their proper perspective. The motion for rectification was opposed to by the Revenue. The Tribunal observed that the assessee's grievance was relating to r…

Director of Income Tax (Exemption) vs. National Association of Software and Service Companies (Nasscom)

In the result the appeals are disposed of as above with no order as to

ITA - 17 / 2011HC Delhi10 May 2012
Section 11(1)Section 11(1)(a)Section 11(2)Section 12ASection 143(1)(a)Section 143(2)Section 260A

…the Madras High Court in Commissioner of Income Tax v. Janaki Ammal Ayya Nadar Trust, (1985) 153 ITR 159, the Andhra Pradesh High Court in Munna Lal and Sons v. CIT, (1991) 187 ITR 378 and the Gujarat High Court in CIT v. Ganga Charity Trust Fund, (1986) 162 ITR 612, the Tribunal held that the payment of taxes under the VDIS should be treated as application of income of the trust. 6. So far as the expenditure incurred in Germany is concerned, the Tribunal was of the view that the words “is applied to such purposes in India” appearing in Section 11(1)(a) of the Act only mean that the purposes of the tr…

Director of Income Tax (Exemption) vs. Services Companies

In the result the appeals are disposed of as above with no order as to

ITA/17/2011HC Delhi10 May 2012
Section 11(1)Section 11(1)(a)Section 11(2)Section 12ASection 143(1)(a)Section 143(2)Section 260A

…the Madras High Court in Commissioner of Income Tax v. Janaki Ammal Ayya Nadar Trust, (1985) 153 ITR 159, the Andhra Pradesh High Court in Munna Lal and Sons v. CIT, (1991) 187 ITR 378 and the Gujarat High Court in CIT v. Ganga Charity Trust Fund, (1986) 162 ITR 612, the Tribunal held that the payment of taxes under the VDIS should be treated as application of income of the trust. 6. So far as the expenditure incurred in Germany is concerned, the Tribunal was of the view that the words “is applied to such purposes in India” appearing in Section 11(1)(a) of the Act only mean that the purposes of the tr…