CIT v. National Association of Software & Services Companies

345 ITR 362High Court2012#2941 most cited

What is CIT v. National Association of Software & Services Companies authority for?

A one-time fee paid by members, with the understanding that it can only be used for capital purposes, is considered a corpus donation and is not taxable as income. This is especially true when separate fees are collected for services rendered.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

DIT (Exemption) v. National Association of Software & Service Companies · 345 ITR 362 · corpus donation · capital purposes · one-time fee · taxable income · section 11 · section 10(23C)

Sections most often in play

Section 11Section 11(5)Section 250Section 10(23C)Section 10(23C)(iiiad)Section 11(1)(c)Section 11(1)(d)Section 12

Issues it is cited on

application of income for charitable purposessection 11(1)(d)section 11(1)section 11(1)(a)proviso to section 2(15)application of incomesection 11(2)section 10(23c)section 2(15)revenue expenditurecapital expendituresection 12a

Judgments citing CIT v. National Association of Software & Services Companies

Deputy Director of Income Tax (Exemptions), Circle-17(1), Bangalore vs. M/S. Foundation for Indian Sporting Talent (Ifst), Bangalore

In the result, the appeals by the Revenue are dismissed and that of the Assessee are partly allowed

ITA 1666/BANG/2017[2012-13]Status: DisposedITAT Bangalore25 Jan 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri C. Ramesh, CAFor Respondent: Shri R.N. Siddappaji, Addl.CIT(DR)(ITAT), Bengaluru
Section 12ASection 143(3)Section 32Section 35(2)(iv)

…erefore, exemption cannot be denied on the ground that expenses were incurred outside India. 22. The ld. DR, however, placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT v. National Association of Software & Services Companies, 345 ITR 362 (Del), wherein a contrary view was taken. 23. The ld. counsel for the assessee brought to our notice the decision of the ITAT Delhi Tribunal rendered in the case of DDIT v. Associated Chamber of Commerce & Industry of India, ITA No.6525/Del/2013, order dated 31,97,2915 wherein the decision cited by the ld. DR in the case of CIT v. National Assoc…

Deputy Director of Income Tax (Exemtions), Circle-17(1), Bangaloe vs. M/S Foundation for Indian Sporting Talent (Fist), Bangalore

In the result, the appeals by the Revenue are dismissed and that of the Assessee are partly allowed

ITA 1665/BANG/2017[2011-12]Status: DisposedITAT Bangalore25 Jan 2019AY 2011-12

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri C. Ramesh, CAFor Respondent: Shri R.N. Siddappaji, Addl.CIT(DR)(ITAT), Bengaluru
Section 12ASection 143(3)Section 32Section 35(2)(iv)

…erefore, exemption cannot be denied on the ground that expenses were incurred outside India. 22. The ld. DR, however, placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT v. National Association of Software & Services Companies, 345 ITR 362 (Del), wherein a contrary view was taken. 23. The ld. counsel for the assessee brought to our notice the decision of the ITAT Delhi Tribunal rendered in the case of DDIT v. Associated Chamber of Commerce & Industry of India, ITA No.6525/Del/2013, order dated 31,97,2915 wherein the decision cited by the ld. DR in the case of CIT v. National Assoc…

ITO (E), New Delhi vs. M/S. Wrestling Federation of India, New Delhi

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

ITA 2063/DEL/2017[2012-13]Status: DisposedITAT Delhi03 Dec 2018AY 2012-13

Bench: : Shri H.S. Sidhu & Shri L.P. Sahuassessment Year: 2010-11

Section 11Section 11(1)(c)Section 12ASection 2Section 2(15)Section 4A

…funds are rooted through WFI by the Govt. of India. Hence it is not for the use of the assessee. The assessee was asked vide note sheet dated 23.02.2016 as to why the decision of Delhi ITA No. 4755/Del/16 & 2063/Del/2017 9 High Court in the case of NASSCOM 345 ITR 362 regarding the expenditure on foreign currency and applicability of Section 11 (1)(c) should not be applied to it. The assessee replied as under: 'The Contention that words "to the extent to which such income is applied to such purpose in India" appearing to Section l1(1)(c) of the Act only require that charitable purpose should be confined to Ind…

ITO (E), New Delhi vs. M/S Wrestling Federation of India, New Delhi

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

ITA 4755/DEL/2016[2010-11]Status: DisposedITAT Delhi03 Dec 2018AY 2010-11

Bench: : Shri H.S. Sidhu & Shri L.P. Sahuassessment Year: 2010-11

Section 11Section 11(1)(c)Section 12ASection 2Section 2(15)Section 4A

…funds are rooted through WFI by the Govt. of India. Hence it is not for the use of the assessee. The assessee was asked vide note sheet dated 23.02.2016 as to why the decision of Delhi ITA No. 4755/Del/16 & 2063/Del/2017 9 High Court in the case of NASSCOM 345 ITR 362 regarding the expenditure on foreign currency and applicability of Section 11 (1)(c) should not be applied to it. The assessee replied as under: 'The Contention that words "to the extent to which such income is applied to such purpose in India" appearing to Section l1(1)(c) of the Act only require that charitable purpose should be confined to Ind…

M/S. Indraprastha Cancer Society and Research Centre, New Delhi vs. ITO (Exemption), New Delhi

In the result appeal filed by the Assessee stands partly allowed

ITA 2555/DEL/2015[2010-11]Status: DisposedITAT Delhi02 Jul 2018AY 2010-11

Bench: Shri G.D.Agrawal, Hon’Ble & Shri Sudhanshu Srivastavaa.Y. 2010-11

Section 10(23)(VI)Section 11Section 11(1)Section 12A

…Society reported in 229 Taxmann 93 (Del). With respect to the provision for bad and doubtful debts, reliance was placed on the judgement of Hon’ble Delhi High Court in the case of DIT(E) vs. National Association of Software and Services Companies reported in 345 ITR 362 (Del.). With respect to the third ground pertaining to disallowance of loss with respect to the assets written off, the Ld.AR submitted that this ground was not being pressed in view of the huge losses of the assessee Society. 4. In response, the Ld. SR. D.R. placed reliance on the concurrent findings of both the lower authorities and vehemently…

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

…come-tax can be said to be actual application of income for the charitable purposes of the trust in India.” 10. We also rely on the judgment of the Hon’ble Delhi High Court in the case of DIT(E) Vs. National Association of Software & Services Companies (2012) 345 ITR 362 wherein the Hon’ble High Court has held as under: “12. Thus, it appears that there is a consensus of judicial view on the question whether payment of taxes can be considered as a proper deduction while determining the income available to a trust for application to charitable purposes as required by Section 11 (l)(a) of the Act. The question is…

Haryana State Agricultural Marketing Board, Panchkula vs. DCIT, Panchkula

In the result, the appeal of the assessee in ITA

ITA 158/CHANDI/2013[2004-05]Status: DisposedITAT Chandigarh23 Mar 2018AY 2004-05

Bench: Shri Sanjay Garg & Ms. Annapurna Gupta & Hayana State Agricultural Vs. The D.C.I.T., Marketing Board, Panchkula Circle, Panchkula. Panchkula. Pan: Aaalh0016R (Appellant) (Respondent)

For Appellant: Shri Harish Nayar, AdvFor Respondent: Smt.Chanderkanta, Addl.CIT
Section 11Section 11(1)(a)Section 11(2)Section 12ASection 143(3)

…res as application of income for the year. The Ld. counsel for assessee drew our attention to the order of the Hon'ble Delhi High Court in the case of Director of Income Tax (Exemptions) Vs. National Association of Software & Services Companies reported in 345 ITR 362 and pointed out therefrom that the Hon'ble High Court on an identical issue had held that the taxes paid are to be treated as application of income for charitable purposes. 11. The Ld. DR, on the other hand, relied upon the order of the Ld.CIT(Appeals). 12. We have heard the rival contentions carefully and have perused the orders of the auth…

ACIT(E), Jaipur vs. Scholars Education Trust of India, Jaipur

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

ITA 1087/JPR/2016[2012-13]Status: DisposedITAT Jaipur15 Nov 2017AY 2012-13
For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Shri Varindera Mehta (CIT)
Section 10Section 11Section 12Section 12A

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 1087/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2012-13 cuke The ACIT(E), M/s Scholars Education Trust of India, Vs. Circle, A-3-G. Sunder Path, Bani Park, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADTS1374A vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (C.A.) jktLo dh vksj ls@ Revenue by : Shri Varindera Mehta…

The Synthetic & Rayon Textiles Export Promotion Council, Mumbai vs. ITO (E) 2(4), Mumbai

In the result, all the five appeals of the assessee are allowed

ITA 1578/MUM/2017[2004-05]Status: DisposedITAT Mumbai17 May 2017AY 2004-05

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

Section 11Section 11(1)(a)Section 12Section 143(3)Section 147Section 25

…es incurred outside India of Rs. 2,93,78,816/- is disallowed.” 5. Aggrieved, assessee preferred the appeal before CIT(A), who relied on the Delhi High Court decision in the case of DCIT (exemption) vs. National Association of Software and Services Companies (345 ITR 362) confirmed the disallowance by observing in Para 5.2 as under: - “5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O, the submissions of the appellant and also discussed the case with the A.R of the appellant. The contentions and submissions of the appellant are being discussed and decided…

The Synthetic & Rayon Textiles Export Promotion Council, Mumbai vs. ITO (E) 2(4), Mumbai

In the result, all the five appeals of the assessee are allowed

ITA 1577/MUM/2017[2006-07]Status: DisposedITAT Mumbai17 May 2017AY 2006-07

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

Section 11Section 11(1)(a)Section 12Section 143(3)Section 147Section 25

…es incurred outside India of Rs. 2,93,78,816/- is disallowed.” 5. Aggrieved, assessee preferred the appeal before CIT(A), who relied on the Delhi High Court decision in the case of DCIT (exemption) vs. National Association of Software and Services Companies (345 ITR 362) confirmed the disallowance by observing in Para 5.2 as under: - “5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O, the submissions of the appellant and also discussed the case with the A.R of the appellant. The contentions and submissions of the appellant are being discussed and decided…

The Synthetic & Rayon Textiles Export Promotion Council, Mumbai vs. ITO (E) 2(4), Mumbai

In the result, all the five appeals of the assessee are allowed

ITA 1576/MUM/2017[2009-10]Status: DisposedITAT Mumbai17 May 2017AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

Section 11Section 11(1)(a)Section 12Section 143(3)Section 147Section 25

…es incurred outside India of Rs. 2,93,78,816/- is disallowed.” 5. Aggrieved, assessee preferred the appeal before CIT(A), who relied on the Delhi High Court decision in the case of DCIT (exemption) vs. National Association of Software and Services Companies (345 ITR 362) confirmed the disallowance by observing in Para 5.2 as under: - “5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O, the submissions of the appellant and also discussed the case with the A.R of the appellant. The contentions and submissions of the appellant are being discussed and decided…

The Synthetic & Rayon Textiles Export Promotion Council, Mumbai vs. DDIT (E) 1(2), Mumbai

In the result, all the five appeals of the assessee are allowed

ITA 1575/MUM/2017[2011-12]Status: DisposedITAT Mumbai17 May 2017AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

Section 11Section 11(1)(a)Section 12Section 143(3)Section 147Section 25

…es incurred outside India of Rs. 2,93,78,816/- is disallowed.” 5. Aggrieved, assessee preferred the appeal before CIT(A), who relied on the Delhi High Court decision in the case of DCIT (exemption) vs. National Association of Software and Services Companies (345 ITR 362) confirmed the disallowance by observing in Para 5.2 as under: - “5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O, the submissions of the appellant and also discussed the case with the A.R of the appellant. The contentions and submissions of the appellant are being discussed and decided…

The Synthetic & Rayon Textiles Export Promotion Council, Mumbai vs. ITO (E) 2(4), Mumbai

In the result, all the five appeals of the assessee are allowed

ITA 1573/MUM/2017[2012-13]Status: DisposedITAT Mumbai17 May 2017AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

Section 11Section 11(1)(a)Section 12Section 143(3)Section 147Section 25

…es incurred outside India of Rs. 2,93,78,816/- is disallowed.” 5. Aggrieved, assessee preferred the appeal before CIT(A), who relied on the Delhi High Court decision in the case of DCIT (exemption) vs. National Association of Software and Services Companies (345 ITR 362) confirmed the disallowance by observing in Para 5.2 as under: - “5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O, the submissions of the appellant and also discussed the case with the A.R of the appellant. The contentions and submissions of the appellant are being discussed and decided…

Seth Walchand Hirachand Memorial Trust, Mumbai vs. ITO (E) II(1), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be Allowed

ITA 4852/MUM/2016[2010-11]Status: DisposedITAT Mumbai29 Mar 2017AY 2010-11

Bench: Shri D. Karunakara Rao, Am & Shri Amarjit Singh, Jm

For Appellant: Ms. Vaibhavi PatelFor Respondent: Shri M. C. Omi Ningshan
Section 10(33)Section 11Section 11(1)(a)Section 12ASection 142(1)Section 143(2)

…h should be in India and execution of charitable purpose may be inside or outside India. The AO relied upon the decision of Hon’ble Delhi High Court in the case of Director of Income Tax (Exemption) Vs. National Association of Software and Services Companies (345 ITR 362) and held that the amount of Rs. 1,53,50,000/- spent by the assessee for education grant to the students is not application of its income for charitable purpose in India and accordingly disallowed the exemption u/s 11. 10.2 On appeal CIT(A) confirmed the action of the AO. XXXXXXXXX 10.5 We have considered the rival submissions and perused the rel…

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)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL ( DELHI BENCH “F” NEW DELHI ) BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER I.T.A. No. 2267/Del./2013 Assessment Year : 2009–10 Patanjali Yogpeeth (Nyas) ADIT [Exemptions] D–13, Pushpanjali Enclave, Vs. Range : II, Pitampura, DELHI. New Delhi. PAN : AABTP 0560 H (Appellant) (Respondent) Appellant by : Shri Ajay Vohra, Sr. Adv.; & Shri Rohit Jain, Adv.; Respondent by : Shri N. C. Swain, CIT [DR]; Date of Hearing : 19.01.2017 Date of Pronouncement : 09.02.2017. O R D E R PER I. C. SUDHIR, J. M. : The assessee has questioned first appellate…

ACIT (Exemptions), Bhubaneswar vs. M/S. Peoples Forum, Bhubaneswar

In the result, the appeal filed by the revenue and cross objections filed

ITA 325/CTK/2015[2009-10]Status: DisposedITAT Cuttack18 Jan 2017AY 2009-10

Bench: Shri N.S Sainiassessment Year :2009-2010 Acit (Exemptions), Aayakar Vs. M/S. Peoples Forum, Plot Bhavan, Bhubaneswar. No.Hig 44, Dharma Vihar, Khandagiri, Bhubaneswar Pan/Gir No. Aaatp 2214 R (Appellant) .. ( Respondent)

For Appellant: Shri S.K.Agarwal, ARFor Respondent: Shri D.K.Pradhan, DR
Section 11Section 12ASection 2(15)Section 288A

…14. Ld D.R. relied on the order of the Assessing Officer. 15. I find that the issue is no longer res-integra. The Hon’ble Delhi High Court in the case of Director of Income Tax (Exemption) vs. National Association of Software and Services Companies, (2012) 345 ITR 362 (Del) held as under: “That the income of the trust available for application of charitable purposes in India should be computed in accordance with the strict provisions of the Act but should be computed in accordance with commercial principles. Under commercial principles it has always been recognized that a provision, reasonably made for a los…

The Indian Silk Export Promotion Concil, New Delhi vs. Asst CIT (E) II(1), Mumbai

In the result the appeal is allowed for statistical purpose

ITA 3328/MUM/2015[2010-11]Status: DisposedITAT Mumbai30 Nov 2016AY 2010-11

Bench: Shri C. N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2010-11

For Appellant: Shri N. H. Gajria, ARFor Respondent: Shri Kailash Gaikwad, DR
Section 11Section 143(3)

…and the very purpose of formation of the assessee trust would be defeated if such amount is not spent outside India. The AO relied on the decision in the case of Director of Income- tax (Exemption) vs. National Association of Software and Services Companies (345 ITR 362) and held that the application of income as well as charitable purposes should be in India. In view of the above decision, the AO disallowed Rs. 32, 90, 030/-spent by the assessee trust outside India and denied exemption on the above amount. 4. The assessee-trust preferred appeal against the order of the AO before the ld. CIT (A). The ld. CIT (A…

ADIT(E), Delhi vs. National Association of Software and Service Companies, New Delhi

Appeal are dismissed

ITA 5406/DEL/2011[2008-09]Status: DisposedITAT Delhi08 Apr 2016AY 2008-09

Bench: Shri G. D. Agrawal & Smt Suchitra Kamblei.T.A .No.-4724/Del/2011 (Assessment Year-2008-09) National Association Of Software & Vs Adit(E) Services Companies Investigation Circle-1 2Nd Floor, International Youth Centre New Delhi Teen Murti Marg, Chanakyapuri New Delhi (Respondent) Aaatn2595F (Appellant) I.T.A .No.-5406/Del/2011 (Assessment Year-2008-09) Adit(E) Vs National Association Of Investigation Circle-1 Software & Services New Delhi Companies 2Nd Floor, International Youth Centre Teen Murti Marg, Chanakyapuri, New Delhi Aaatn2595F (Appellant) Respondent) Appellant By Sh. Gaurav Jain, Adv Respondent By Sh.P. Dam Kanunjna, Sr. Dr

Section 11Section 28

…f the appellant. 3. The Ld. AR submitted that the Ground No. 1 & 3 of the Revenue’s appeal is covered by the decision of the Hon’ble Delhi High Court in assessee’s own case i.e. DIT Exemption Vs. National Association of Software and Services Companies [2012] 345 ITR 362 Delhi in favour of assessee. The relevant paragraph of the said judgment is as under (plasitum 34 at page No. 386):- “………Whereas the annual subscription fee is a recurring receipt, receivable by the assessee trust by mere efflux of time irrespective of whether any services are rendered or not to the members, what is contemplated in Section 28(ii…

National Association of Software & Service Companies, New Delhi vs. ADIT(E), New Delhi

Appeal are dismissed

ITA 4724/DEL/2011[2008-09]Status: DisposedITAT Delhi08 Apr 2016AY 2008-09

Bench: Shri G. D. Agrawal & Smt Suchitra Kamblei.T.A .No.-4724/Del/2011 (Assessment Year-2008-09) National Association Of Software & Vs Adit(E) Services Companies Investigation Circle-1 2Nd Floor, International Youth Centre New Delhi Teen Murti Marg, Chanakyapuri New Delhi (Respondent) Aaatn2595F (Appellant) I.T.A .No.-5406/Del/2011 (Assessment Year-2008-09) Adit(E) Vs National Association Of Investigation Circle-1 Software & Services New Delhi Companies 2Nd Floor, International Youth Centre Teen Murti Marg, Chanakyapuri, New Delhi Aaatn2595F (Appellant) Respondent) Appellant By Sh. Gaurav Jain, Adv Respondent By Sh.P. Dam Kanunjna, Sr. Dr

Section 11Section 28

…f the appellant. 3. The Ld. AR submitted that the Ground No. 1 & 3 of the Revenue’s appeal is covered by the decision of the Hon’ble Delhi High Court in assessee’s own case i.e. DIT Exemption Vs. National Association of Software and Services Companies [2012] 345 ITR 362 Delhi in favour of assessee. The relevant paragraph of the said judgment is as under (plasitum 34 at page No. 386):- “………Whereas the annual subscription fee is a recurring receipt, receivable by the assessee trust by mere efflux of time irrespective of whether any services are rendered or not to the members, what is contemplated in Section 28(ii…

Asst CIT (E) I(1), Mumbai vs. Jamshetjee Tata Trust, Mumbai

ITA 3807/MUM/2015[2011-12]Status: DisposedITAT Mumbai04 Feb 2016AY 2011-12
For Appellant: Shri Dilip J. ThakkarFor Respondent: Shri Alok Johri-DR
Section 10(34)Section 11Section 11aSection 13(1)(d)Section 143(3)Section 164(2)Section 254(1)

…h should be in India and execution of charitable purpose may be inside or outside India. The AO relied upon the decision of Hon’ble Delhi High Court in the case of Director of Income Tax (Exemption) Vs. National Association of Software and Services Companies (345 ITR 362) and held that the amount of Rs. 1,53,50,000/- spent by the assessee for education grant to the students is not application of its income for charitable purpose in India and accordingly disallowed the exemption u/s 11. 10.2 On appeal CIT(A) confirmed the action of the AO. XXXXXXXXX 10.5 We have considered the rival submissions and perused the rel…