CIT v. Institute of Banking Personnel Selection

264 ITR 110High Court2003#181 most cited

What is CIT v. Institute of Banking Personnel Selection authority for?

Depreciation is allowable on assets for which the cost has been fully allowed as an application of income under Section 11 in previous years, when computing the income of a charitable trust. Charitable trusts are also entitled to carry forward their deficit.

398

judgments rely on this decision, according to BharatTax’s citation analysis of 372,576 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Institute of Banking Personnel Selection · Section 11 · Section 11(1) · depreciation allowance for trusts · application of income · capital expenditure trusts · carry forward of deficit · charitable trust exemption · computing trust income

Sections most often in play

Section 143(3)Section 11Section 12ASection 147Section 11(1)(a)Section 11(6)Section 12Section 13(8)

Issues it is cited on

section 11(1)(a)section 11(1)application of incomecapital expendituresection 12asection 11section 10section 12previous yearsection 13personsection 25

Judgments citing CIT v. Institute of Banking Personnel Selection

Deputy Commissioner of Income Tax (Exemptions), Circle-1, Bangalore vs. M/S. Green Wood High Trust, Bangalore

In the result, the appeal filed by the revenue is dismissed

ITA 708/BANG/2020[2014-15]Status: DisposedITAT Bangalore25 Oct 2021AY 2014-15

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year: 2014-15

For Appellant: Dr. Manjunath Karkihalli, D.RFor Respondent: Shri B.R. Sudheendra, A.R
Section 12A

…ITA No.708/Bang/2020 M/s. Green Wood High Trust, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER Assessment Year: 2014-15 Deputy Commissioner of M/s. Green Wood High Trust, Income-tax (Exemptions) No.377, Sarjapur Road Circle-1 Koramangala Vs. Bengaluru Bengaluru PAN NO :AAATG6125A APPELLANT RESPONDENT Appellant by : Dr. Manjunath Karkihalli, D.R. Respondent by : Shri B.R. Sudheendra, A.R. Date of Hearing : 25.10.2021 Date of Pronouncement : 25.10.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER:…

The Deputy Commissioner of Income Tax (Exemptions), Circle- 1, Bangalore vs. M/S. Childrens Education Society, Bangalore

In the result, all the three appeals of the revenue are dismissed

ITA 699/BANG/2020[2017-18]Status: DisposedITAT Bangalore01 Sept 2021AY 2017-18

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

For Appellant: Shri Muzaffar Hussain, D.RFor Respondent: Shri V. Srinivasan, A.R
Section 11(1)(a)Section 12A

…of law and the judgment relied upon by it rendered by the cognate Bench. Therefore, the same does not call for interference. A similar view was also taken by the Division Bench of Bombay High Court in Commissioner of Income- tax v. Institute of Banking (2003) 264 ITR 110, wherein the Division Bench of Bombay High Court held that the income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in…

The Deputy Commissioner of Income Tax (Exemptions), Circle- 1, Bangalore vs. M/S. Childrens Education Society, Bangalore

In the result, all the three appeals of the revenue are dismissed

ITA 698/BANG/2020[2016-17]Status: DisposedITAT Bangalore01 Sept 2021AY 2016-17

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

For Appellant: Shri Muzaffar Hussain, D.RFor Respondent: Shri V. Srinivasan, A.R
Section 11(1)(a)Section 12A

…of law and the judgment relied upon by it rendered by the cognate Bench. Therefore, the same does not call for interference. A similar view was also taken by the Division Bench of Bombay High Court in Commissioner of Income- tax v. Institute of Banking (2003) 264 ITR 110, wherein the Division Bench of Bombay High Court held that the income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in…

The Deputy Commissioner of Income Tax (Exemptions), Circle- 1, Bangalore vs. M/S. Childrens Educations Society, Bangalore

In the result, all the three appeals of the revenue are dismissed

ITA 697/BANG/2020[2014-15]Status: DisposedITAT Bangalore01 Sept 2021AY 2014-15

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

For Appellant: Shri Muzaffar Hussain, D.RFor Respondent: Shri V. Srinivasan, A.R
Section 11(1)(a)Section 12A

…of law and the judgment relied upon by it rendered by the cognate Bench. Therefore, the same does not call for interference. A similar view was also taken by the Division Bench of Bombay High Court in Commissioner of Income- tax v. Institute of Banking (2003) 264 ITR 110, wherein the Division Bench of Bombay High Court held that the income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in…

Anadilal & Ganesh Podar Society, Mumbai vs. DCIT (Exe) I(1), Mumbai

In the result, assessee’s appeal is allowed

ITA 5962/MUM/2019[2014-15]Status: DisposedITAT Mumbai03 Aug 2021AY 2014-15

Bench: Shri C.N. Prasad & Shri S. Rifaur Rahman

For Appellant: Ms. Ritu Kama KishoreFor Respondent: ShriBrajendra Kumar
Section 11Section 12ASection 143(3)

…95/- is allowed to be carried forward to subsequent assessment years, Ld AR has placed reliance on the 9 Anandilal & Ganeshy Podar SocietySamria & Co. decision of Hon'ble Bombay High Court in the case of CIT vs. Institute of Banking Personnel Section, [2003] 264 ITR 110 (Bom.), wherein following question was referred to their Lordships for decision: "3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law forward the deficit of earlier year and set it off against the surplus of subsequent years when the same was not allowable in the case of assessee trust in whose case i…

Dr. D. Y. Patil Vidyapeeth Society, Pune vs. Jt. CIT (OSD) Central Circle-7(3), Mumbai

In the result, appeals for the A

ITA 53/MUM/2021[2017-18]Status: DisposedITAT Mumbai26 Jul 2021AY 2017-18

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Rajeev KhandelwalFor Respondent: Ms. Leena Srivastava
Section 143(3)Section 153CSection 154

…d to be carried forward and set–off against the income of the subsequent assessment year while computing the income under section 11 of the Act as held by the Hon'ble Jurisdictional High Court in CIT v/s Institute of Banking Personnel Selection (IBPS), [2003] 264 ITR 110 (Bom.) which was approved by the Hon'ble Supreme Court by dismissing the SLP filed by the Department in DIT (Exemp.) v/s Maharashtra Industrial Development Corporation (MIDC), ITA no.2652 o 2011. The Assessing Officer by way of assessment order dated 28th December 2018 framed 5 M/s. PN NJ Industries Pvt. Ltd. under section 153C r/w section 143(…

Dr. D. Y. Patil Vidyapeeth Society, Pune vs. Jt. CIT (OSD) Central Circle-7(3), Mumbai

In the result, appeals for the A

ITA 48/MUM/2021[2012-13]Status: DisposedITAT Mumbai26 Jul 2021AY 2012-13

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Rajeev KhandelwalFor Respondent: Ms. Leena Srivastava
Section 143(3)Section 153CSection 154

…d to be carried forward and set–off against the income of the subsequent assessment year while computing the income under section 11 of the Act as held by the Hon'ble Jurisdictional High Court in CIT v/s Institute of Banking Personnel Selection (IBPS), [2003] 264 ITR 110 (Bom.) which was approved by the Hon'ble Supreme Court by dismissing the SLP filed by the Department in DIT (Exemp.) v/s Maharashtra Industrial Development Corporation (MIDC), ITA no.2652 o 2011. The Assessing Officer by way of assessment order dated 28th December 2018 framed 5 M/s. PN NJ Industries Pvt. Ltd. under section 153C r/w section 143(…

Dr. D. Y. Patil Vidyapeeth Society, Pune vs. Jt. CIT (OSD), Central Circle-7(1), Mumbai

In the result, appeals for the A

ITA 47/MUM/2021[2011-12]Status: DisposedITAT Mumbai26 Jul 2021AY 2011-12

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahman

For Appellant: Shri Rajeev KhandelwalFor Respondent: Ms. Leena Srivastava
Section 143(3)Section 153CSection 154

…d to be carried forward and set–off against the income of the subsequent assessment year while computing the income under section 11 of the Act as held by the Hon'ble Jurisdictional High Court in CIT v/s Institute of Banking Personnel Selection (IBPS), [2003] 264 ITR 110 (Bom.) which was approved by the Hon'ble Supreme Court by dismissing the SLP filed by the Department in DIT (Exemp.) v/s Maharashtra Industrial Development Corporation (MIDC), ITA no.2652 o 2011. The Assessing Officer by way of assessment order dated 28th December 2018 framed 5 M/s. PN NJ Industries Pvt. Ltd. under section 153C r/w section 143(…

The Income Tax Officer (Exemptions), Ward- 1, Bangalore vs. M/S. Global City Educational Trust, Bangalore

In the result, appeal by the Revenue is dismissed

ITA 695/BANG/2020[2016-17]Status: DisposedITAT Bangalore20 Jul 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 Ito (Exemptions), Vs. M/S. Global City Educational Trust, Ward – 1, 135, 135, Ramaiah Garden, Bengaluru. Jalakanteshwara Temple Street, 5Th Main, 6Th Cross, Malleshpalya, Bengaluru – 560 075. Pan : Aabtg 3599 H Appellant Respondent Appellant By : Shri. Pradeep Kumar, Cit(Dr)(Itat), Bengaluru. Respondent By : Shri. V. Srinivasan, Advocate Date Of Hearing : 19.07.2021 Date Of Pronouncement : 20.07.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Revenue Against The Order Dated 31.08.2020 Of Cit(A), Bengaluru, Relating To Assessment Year 2016-17. The Grounds Raised By The Revenue Reads As Follows:

For Appellant: Shri. Pradeep Kumar, CIT(DR)(ITAT), BengaluruFor Respondent: Shri. V. Srinivasan, Advocate
Section 10(34)Section 11Section 11(1)(a)Section 11(1)(d)Section 12ASection 143Section 143(3)

…h later year. The above is the position of law as held in the case of CIT Vs. Maharana of Mewar Charitable Foundation 164 ITR 439 (Raj) CIT Vs. Shri Plot Swetamber Murti Pujak Jain Mandal 211 ITR 293 (Guj.). In CIT Vs. Institute of Banking Personnel Selection 264 ITR 110 (Bom) it was held that in case of charitable trust whose income is exempt under s. 11, excess of expenditure in the earlier years can be adjusted against income of subsequent years and such adjustment would be application of income for subsequent years and that depreciation is allowable on the assets the cost of which has been fully allowed as ap…

ACIT (Exemption), Circle-2 (1), New Delhi vs. Subros Educational Society, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7326/DEL/2017[2013-14]Status: DisposedITAT Delhi16 Jul 2021AY 2013-14

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2013-14

Section 11Section 143(3)Section 15Section 70

…at utilization of such income for meeting the expenditure of the earlier year, would not amount to such income being applied for charitable or religious purposes." 4.2.4 The Hon'ble Bombay High Court in CIT v. Institute of Banking Personnel Selection [(2003) 264 ITR 110], held that income derived from a trust property should be computed on sound commercial principles and this included carrying forward and set-off of deficit in the earlier years. The relevant extracts are as under: "Income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applie…

ACIT(E), Circle-2(1), New Delhi vs. The British School Society, New Delhi

In the result the appeal of the Revenue in ITA No

ITA 4579/DEL/2017[2014-15]Status: DisposedITAT Delhi21 Jun 2021AY 2014-15

Bench: Shri N.K. Billaiya & Shri Kuldip Singh

For Appellant: Shri Himanshu Agarwal, AdvFor Respondent: ShriH.K. Choudhary , CIT-DR
Section 10Section 11Section 12ASection 15Section 2(15)Section 70Section 80G(5)(vi)

…23,18,625/- Addition in capital work in progress 26,46,65,182/- Leave encashment paid 14,483/- Gratuity Paid 24,16,536/- 27,94,14,826/- 63,34,01,943/- (9,91,91,758) 11. The Hon'ble Bombay High Court in the case of Institute of Banking Personnel Selection 264 ITR 110 has held that income derived from trust property should be computed on sound commercial principles and this included carry forward and set off of deficit in the earlier year. The relevant findings of the Hon'ble High Court read as under: " Income derived from the trust property has also got to be computed on commercial principles and if commer…

DCIT (Exemption), New Delhi vs. M/S. Nav Nirman Sewa Samiti, Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 645/DEL/2017[2012-13]Status: DisposedITAT Delhi11 May 2021AY 2012-13

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing]

Section 11Section 12ASection 143(3)Section 70

…ndation, 164 ITR 439 (Raj) 1987. ii. CIT vs. Shri Plot Swetamaber Murti Pujak Jain Mandal, 211 ITR 293 (Guj) 1995. ill. CIT vs. Matrisewa Trust, 242 ITR 20 (Mad) 2000 w. Govindu Naicker Estate vs. ADIT, 248 ITR 110 (Bom) 2003. v. CIT vs. Institute of Banking, 264 ITR 110 (Bom) 2003. vi. DIT vs. Raghuvanslii Charitable Trust, 197 Taxmann.com 170 (Delhi) 2011 vii CIT vs. Gujarat Samaj, 349 ITR 559 (MP) 2012” 9 ITA No.645/Del./2017 5.1 We find that Ld. CIT(A) while arriving at his finding, has followed decision of the Hon’ble Jurisdictional High Court in the case of DIT Vs Raghuvanshi Charitable Trust (supra), whi…

Deputy Commissioner of Income-Tax, (Exemption) Circle, Pune vs. The Bishops Education Society, Pune

In the result, the appeal of the Revenue in ITA No

ITA 2551/PUN/2017[2008-09]Status: DisposedITAT Pune22 Mar 2021AY 2008-09
For Appellant: NoneFor Respondent: Shri S. P. Walimbe
Section 11Section 11(1)Section 12ASection 143(3)Section 32Section 32(1)

…ved by the above order, an appeal was preferred before the ld. CIT(A), who vide his impugned order following the following judicial precedents allowed the depreciation as application of income :- (a) CIT v Institute of Banking Personnel Selection (IBPS)(2003) 264 ITR 110 (Bom) (b) G.K.R. Charities v Deputy Director of IT (Exemptions)-I (2012) 051 SOT 0538 (Chen Trib) (c) CIT v Society of The Sisters of St. Anne (1984) 146 ITR 28 (Kar) (d) CIT v Raipur Pallottine Society (1989) 180 ITR 579 (MP) (e) CIT v Sheth Manilal Ranchhoddas Vishram Bhavan Trust (1992) 198 ITR 598 (Guj) (f) Director of Income Tax (Exemption)…

Deputy Commissioner of Income-Tax, (Exemption) Circle, Pune vs. Shivnagar Vidya Prasarak Mandal, Pune

In the result, the appeal of the Revenue in ITA No

ITA 2548/PUN/2017[2010-11]Status: DisposedITAT Pune22 Mar 2021AY 2010-11
For Appellant: NoneFor Respondent: Shri S. P. Walimbe
Section 11Section 11(1)Section 12ASection 143(3)Section 32Section 32(1)

…ved by the above order, an appeal was preferred before the ld. CIT(A), who vide his impugned order following the following judicial precedents allowed the depreciation as application of income :- (a) CIT v Institute of Banking Personnel Selection (IBPS)(2003) 264 ITR 110 (Bom) (b) G.K.R. Charities v Deputy Director of IT (Exemptions)-I (2012) 051 SOT 0538 (Chen Trib) (c) CIT v Society of The Sisters of St. Anne (1984) 146 ITR 28 (Kar) (d) CIT v Raipur Pallottine Society (1989) 180 ITR 579 (MP) (e) CIT v Sheth Manilal Ranchhoddas Vishram Bhavan Trust (1992) 198 ITR 598 (Guj) (f) Director of Income Tax (Exemption)…

ACIT, New Delhi vs. India Trade Promotion Organization, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 2110/DEL/2017[2012-13]Status: DisposedITAT Delhi22 Jan 2021AY 2012-13

Bench: Shri Amit Shukla & Shri B.R.R. Kumar

For Appellant: Shri Ved Prakash Mishra, Sr.D.RFor Respondent: None
Section 10(23)(iv)Section 11(1)Section 12ASection 143(3)Section 25Section 32(1)

…1 (P&H), Commissioner of Income Tax vs. Sheth Manilal Ranchhoddas Vishram Bhavan Trust, (1992) 198 ITR 598 (Guj.), Commissioner of Income Tax vs. Raipur Pallottine Society, (1989) 180 ITR 579 (M.P.), Commissioner of Income Tax vs. Institute of Banking, (2003) 264 ITR 110 (Bom), and CIT vs. Shakuntala Tharal Charitable Foundation, (2013) 358 ITR 452 (MP). 15. Kerala High Court was also conscious of the said decisions and the fact that Section 11(1)(a) had been interpreted in a different manner. It was in these circumstances that the Kerala High Court in the last portion of paragraph 6, as quoted above, has state…

The Deputy Commissioner of Income Tax (Exemptions), Circle -1, Bangalore vs. Sri Shridevi Charitable Trust, Bangalore

In the result appeal filed by revenue stands dismissed

ITA 696/BANG/2020[2017-18]Status: DisposedITAT Bangalore12 Jan 2021AY 2017-18

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiassessment Year : 2017-18

For Appellant: Shri C Sandeep, C.AFor Respondent: Shri Rajesh Kumar Jha, CIT (DR)
Section 11Section 11(1)(a)Section 11(1)(d)Section 143(3)

…nt. The relevant part of the decision relying of the jusgment of CIT(exemption) Vs. Ohio University Christ College (2018) 99 Taxmann.com 377/408 ITR 352 (kar) and the decision of Bomabay High Court in Commissioner of Income Tax Vs. Institute of Banking (2003) 264 ITR 110 is as under: Page 3 of 9 '4. With regard to carrying forward of the losses for being set off against the income of the charitable trust for the present Assessment Year, the controversy covered by the judgment in Commissioner of Income Tax (Exemptions) and another . vs. Ohio University Christ College rendered on 17.07.2018 in ITA.No.31212016 and…

Piramal Foundation for Education Leadership, Mumbai vs. DCIT-Exemption - 2(1), Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 216/MUM/2019[2013-14]Status: DisposedITAT Mumbai14 Dec 2020AY 2013-14

Bench: Shri Mahavir Singh & Shri Rajesh Kumarassessment Year: 2013-14 M/S. Piramal Foundation Dcit (Exemption)-2(1), For Education Leadership, Room No.519, Piramal Tower, 5Th Floor, Vs. Ganpatrao Kadam Marg, Piramal Chambers, Lower Parel (W), Lal Baug, Mumbai – 400 013 Parel, Pan: Aagcp1673D Mumbai - 400012 (Appellant) (Respondent) Present For: Assessee By : Shri Ronak Doshi, A.R. Revenue By : Ms. Shreekala Pardeshi, D.R. Date Of Hearing : 05.11.2020 Date Of Pronouncement : 14.12.2020 O R D E R

For Appellant: Shri Ronak Doshi, A.RFor Respondent: Ms. Shreekala Pardeshi, D.R
Section 11(2)Section 143(3)

…of the AO in the assessment order It is seen that the issue is covered in favour of the assessee by the order of Hon'ble jurisdictional High Court in the case of DIT(E) vs MIDC (supra) wherein placing reliance on the decision of CIT vs. Institute of Banking (264 ITR 110) the Hon'ble High Court has dismissed the appeal filed by the department on the issue of carry 3 M/s. Piramal Foundation for Education Leadership, Piramal Tower forward of deficit. This fact has been mentioned even by the AO at the last para of para no.4.1 of the assessment order. The AO therein has observed that the department has filed SLP bef…

DCIT (Exemptions)-2(1), Mumbai vs. Tata Education and Deveopment Trust, Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1535/MUM/2018[2012-13]Status: DisposedITAT Mumbai24 Jul 2020AY 2012-13
Section 11Section 11(1)(c)Section 12A

…forward of deficit of Rs 9,79,43,270 on account of excess expenditure, but then, this issue is admittedly covered in favour of the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT Vs Institute of Banking Personnel Selection [(2003) 264 ITR 110 (Bom)] inasmuch as ITA Nos 1423, 1424 and 1535/Mum/2018 Assessment years: 2011-12 and 2012-13 Page 51 of 51 one of the grounds of appeal itself, inter alia, states that “the Department has not accepted the said decision of Hon’ble jurisdictional High Court on merits of the case, but, due to smallness of tax effect, appeal was not filed before Ho…

Tata Education and Deveopment Trust, Mumbai vs. ACIT(Exp)-2(1) Now Assessed by DCIT (Exemptions)-2(1), Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1424/MUM/2018[2012-13]Status: DisposedITAT Mumbai24 Jul 2020AY 2012-13
Section 11Section 11(1)(c)Section 12A

…forward of deficit of Rs 9,79,43,270 on account of excess expenditure, but then, this issue is admittedly covered in favour of the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT Vs Institute of Banking Personnel Selection [(2003) 264 ITR 110 (Bom)] inasmuch as ITA Nos 1423, 1424 and 1535/Mum/2018 Assessment years: 2011-12 and 2012-13 Page 51 of 51 one of the grounds of appeal itself, inter alia, states that “the Department has not accepted the said decision of Hon’ble jurisdictional High Court on merits of the case, but, due to smallness of tax effect, appeal was not filed before Ho…

Tata Education and Deveopment Trust, Mumbai vs. ACIT(Exp)-2(1) Now Assessed by DCIT (Exemptions)-2(1), Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1423/MUM/2018[2011-12]Status: DisposedITAT Mumbai24 Jul 2020AY 2011-12
Section 11Section 11(1)(c)Section 12A

…forward of deficit of Rs 9,79,43,270 on account of excess expenditure, but then, this issue is admittedly covered in favour of the assessee by Hon’ble jurisdictional High Court’s judgment in the case of CIT Vs Institute of Banking Personnel Selection [(2003) 264 ITR 110 (Bom)] inasmuch as ITA Nos 1423, 1424 and 1535/Mum/2018 Assessment years: 2011-12 and 2012-13 Page 51 of 51 one of the grounds of appeal itself, inter alia, states that “the Department has not accepted the said decision of Hon’ble jurisdictional High Court on merits of the case, but, due to smallness of tax effect, appeal was not filed before Ho…