CIT v. Natwarlal Chowdhury Trust

189 ITR 656High Court1991#9025 most cited
12

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2017 to 2026.

Sections most often in play

Section 11(1)(a)Section 11(2)Section 11(3)Section 11(6)Section 12ASection 143(3)Section 250Section 270A

Issues it is cited on

section 11(3)section 11(1)(a)section 11(2)section 11(1)section 11previous yearsection 250

Judgments citing CIT v. Natwarlal Chowdhury Trust

NARROTAM MORARJEE INSTITUTE OF SHIPPING,MUMBAI vs. ITO (EXEMPTION)WARD 2(1), MUMBAI

In the result, appeal of the assessee is allowed

ITA 5559/MUM/2025[2018-19]Status: DisposedITAT Mumbai16 Feb 2026AY 2018-19

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2018-19 Narrotam Morarjee Institute Of National Faceless Shipping, Mumbai Assessment Appeal Centre 76 – Jolly Maker, Chambers – 2, (Nfac) Office Of The Vs. Vivek Shah, Mumbai, Nariman Commissioner Of Income Point S.O.-400021 Tax, Appeal, Addl/Jcit(A) Delhi (Pan : Aaatn0042R) (Appellant) (Respondent) Present For: Assessee : Shri Nishit Gandhi, Advocate Revenue : Shri Leyaqat Ali Afaqui, Sr. Dr Date Of Hearing : 18.11.2025 Date Of Pronouncement : 16.02.2026 O R D E R Per Girish Agrawal: This Appeal Filed By The Assessee Is Against The Order Of Commissioner Of Income Tax (Appeal), National Faceless Appeal Centre (Nfac), Delhi Vide Order No. Itba/Nfac/S/250/2025- 26/1078465227(1) Dated 14.07.2025 Passed Against The Penalty Order U/S. 270A Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), For Ay 2018-19. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. In The Facts & Circumstances Of The Case & In Law, The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeals Centre, Delhi ["The Cit (A)") U/S 250 Of The Income Tax Act, 1961 ["The Act For Short Erred In Confirming The Penalty U/S 270A Of The Act Passed

For Appellant: Shri Nishit Gandhi, AdvocateFor Respondent: Shri Leyaqat Ali Afaqui, Sr. DR
Section 11Section 11(1)(a)Section 11(2)Section 12ASection 250Section 270A

…f non-utilized set apart fund is similar to the other normal income and deduction u/s 11(1)(a) is allowable. For this bona fide belief, it relied on the decision of Hon’ble High Court of Calcutta in the case of CIT vs. Natwarlal Chowdhury Charity Trust [1991] 189 ITR 656 (Cal). Assessee asserted that it itself had offered the whole amount which was not utilized as income during the year. However, it claimed exemption u/s 11(1)(a) at the rate of 15 per cent on the same which the ld. AO disallowed. According to him, it amounts to a double deduction and therefore, whole amount of Rs.81,64,360/- is taxable in the yea…

COMMISSIONER OF INCOME TAX vs. M/S JAMNALAL BAJAJ FOUNDATION

ITA/808/2017HC Delhi31 May 2024

Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA

Section 11Section 11(1)Section 11(2)Section 11(3)(c)Section 12ASection 142(1)Section 143(1)Section 143(2)

…be invested in fixed deposit with the Indian Bank and it was, therefore, deemed to be the income of the trust in the previous year in which it ceased to remain invested or 5 AO 6 CIT(A) 7 (1991) 189 ITR 656 3 2008-09 10,00,00,000 Total: 25,16,00,000 Digitally Signed By:KAMLESH KUMAR Signing Date:31.05.2024 14:45:18 Signature Not Verified ITA 808/2017 Page 6 of 24 deposited in terms of clause (b) of sub-section (3) of section 11 of the Income-tax Act, 1961. The Income-tax Officer was of the opinion that the assessee was not entitle…

COMMISSIONER OF INCOME TAX vs. M/S JAMNALAL BAJAJ FOUNDATION

ITA-808/2017HC Delhi31 May 2024
Section 11Section 11(1)Section 11(2)Section 11(3)(c)Section 12ASection 142(1)Section 143(1)Section 143(2)

…be invested in fixed deposit with the Indian Bank and it was, therefore, deemed to be the income of the trust in the previous year in which it ceased to remain invested or 5 AO 6 CIT(A) 7 (1991) 189 ITR 656 3 2008-09 10,00,00,000 Total: 25,16,00,000 Digitally Signed By:KAMLESH KUMAR Signing Date:31.05.2024 14:45:18 Signature Not Verified ITA 808/2017 Page 6 of 24 deposited in terms of clause (b) of sub-section (3) of section 11 of the Income-tax Act, 1961. The Income-tax Officer was of the opinion that the assessee was not entitle…

DHYAN SWAMIBAPA TRUST,SENJALDHAM, TEHSIL : SAVARKUNDLA, DIST: AMRELI vs. THE ITO EXEMPTION, WARD-1, RAJKOT

In the result, the appeal of the assessee is allowed

ITA 244/RJT/2022[2015-16]Status: HeardITAT Rajkot14 Jun 2023AY 2015-16

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकर अपील सं./Ita No.244/Rjt/2022 िनधा"रण वष"/Asstt. Year: 2015-16 Dhyan Swamibapa Trust, Ito Senjaldham, Vs. Ward-1(Exemption), Tehsil Saavarkundala Rajkot. Dist. Amreli-364515 C/O. Sanghavi & Company, Prasham, 4Th Floor, Kasturba Road, Nr. Bilkha Plaza, Rajkot-360001. Pan: Aaatd1598E

For Appellant: Shri G.R Sanghavi, A.RFor Respondent: Shri B.D. Gupta, Sr. D.R
Section 11(2)Section 11(3)Section 12ASection 143(1)

…आयकर अपीलीय अिधकरण, अहमदाबाद "ायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, (Conducted through E-Court, Rajkot) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER आयकर अपील सं./ITA No.244/Rjt/2022 िनधा"रण वष"/Asstt. Year: 2015-16 Dhyan Swamibapa Trust, ITO Senjaldham, Vs. Ward-1(Exemption), Tehsil Saavarkundala Rajkot. Dist. Amreli-364515 C/o. Sanghavi & Company, Prasham, 4th floor, Kasturba Road, Nr. Bilkha Plaza, Rajkot-360001. PAN: AAATD1598E (Applicant) (Respondent) Assessee by : Shri G.R Sanghavi, A.R Revenue by : Shri B.D. Gupta, Sr. D.R सुनवाई क" तारीख/Date of Hearing…

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

…he interest of revenue. 016. We have carefully considered rival contentions and perused the Assessment order as well as revisionary order. 017. The Hon'ble Calcutta High Court in the case of CIT vs. Natwarlal Chowdhury Trust, reported in MANU/WB/0135/1989 : 189 ITR 656 has held that the assessee is entitled to accumulate 15% of the total income which is inclusive of the deemed income specified under Section 11(3) of the Act. Thus, from the above judgment, it is transpired that the assessee can claim the benefit of accumulation even on the deemed income specified under the provisions of Section 11(3) of the Act.…

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

…he interest of revenue. 016. We have carefully considered rival contentions and perused the Assessment order as well as revisionary order. 017. The Hon'ble Calcutta High Court in the case of CIT vs. Natwarlal Chowdhury Trust, reported in MANU/WB/0135/1989 : 189 ITR 656 has held that the assessee is entitled to accumulate 15% of the total income which is inclusive of the deemed income specified under Section 11(3) of the Act. Thus, from the above judgment, it is transpired that the assessee can claim the benefit of accumulation even on the deemed income specified under the provisions of Section 11(3) of the Act.…

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

…The counsel for the assessee in support of his contention relied on the decision of Gujarat State Lion Consideration Society v. DCIT in ITA number 69/Rjt/ 2017 and also on the Kolkata High Court decision the case of CIT v. Natwarlal Chowdhury Charitable Trust 189 ITR 656 which held that deemed income under section 11 (3) would be subject to the computation provisions of section 11 of the Act. I.T.A Nos. 377/Rjt/2018 & 216/Rjt/2019 A.Y. 2015-16 & 2016-17 Page No 6 Shri Prabhas Patan Jain Swetambermurti Pujak Sangh vs. ITO 7. In response, DR relied upon the observations made by Ld. CIT(Appeals) and AO in their or…

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

…The counsel for the assessee in support of his contention relied on the decision of Gujarat State Lion Consideration Society v. DCIT in ITA number 69/Rjt/ 2017 and also on the Kolkata High Court decision the case of CIT v. Natwarlal Chowdhury Charitable Trust 189 ITR 656 which held that deemed income under section 11 (3) would be subject to the computation provisions of section 11 of the Act. I.T.A Nos. 377/Rjt/2018 & 216/Rjt/2019 A.Y. 2015-16 & 2016-17 Page No 6 Shri Prabhas Patan Jain Swetambermurti Pujak Sangh vs. ITO 7. In response, DR relied upon the observations made by Ld. CIT(Appeals) and AO in their or…

SHRI PLOT SWETAMBER MURTIPUJAK JAIN TAPGACHCHHA SANGH,RAJKOT vs. THE ITO, WARD-1, RAJKOT

Appeal of the assessee is allowed

ITA 3/RJT/2020[2015-16]Status: DisposedITAT Rajkot14 Sept 2022AY 2015-16

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri Gaurang Sanghvi, A.R
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 11(3)Section 12ASection 143Section 143(1)Section 143(1)(a)

…1) of the Act. Undoubtedly, the scope of adjustments under the provisions of Section 143(1) of the Act is limited to the extent of the items as described above. 11. The Hon’ble Calcutta High Court in the case of CIT vs. Natwarlal Chowdhury Trust, reported in 189 ITR 656 has held that the assessee is entitled to accumulate 15% of the total income which is inclusive of the deemed income specified under Section 11 (3) of the Act. Thus, from the above judgment, it is transpired that the assessee can claim the benefit of accumulation even on the deemed income specified under the provisions of Section 11(3) of the Act…

SHRI PLOT SWETAMBER MURTIPUJAK JAIN TAPGACHCHHA SANGH,RAJKOT vs. THE ITO, WARD-1, RAJKOT

Appeal of the assessee is allowed

ITA 2/RJT/2020[2014-15]Status: DisposedITAT Rajkot14 Sept 2022AY 2014-15

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri Gaurang Sanghvi, A.R
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 11(3)Section 12ASection 143Section 143(1)Section 143(1)(a)

…1) of the Act. Undoubtedly, the scope of adjustments under the provisions of Section 143(1) of the Act is limited to the extent of the items as described above. 11. The Hon’ble Calcutta High Court in the case of CIT vs. Natwarlal Chowdhury Trust, reported in 189 ITR 656 has held that the assessee is entitled to accumulate 15% of the total income which is inclusive of the deemed income specified under Section 11 (3) of the Act. Thus, from the above judgment, it is transpired that the assessee can claim the benefit of accumulation even on the deemed income specified under the provisions of Section 11(3) of the Act…

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)

…sessee have been incorrectly I.T.A No. 29/Ahd/2021 A.Y. 2017-18 Page No. 4 City Manager Association vs. DCIT disallowed since assessee’s case is directly supported by the decision of the Calcutta High Court in the case of Natwarlal Chaudhry Charitable Trust 189 ITR 656 (Cal). As per the assessee, the adjustments made under section 143(1) of the Act disallowing the legitimate claims of the deductions have been wrongly made without proper appreciation of facts and circumstances of the case as well as the records available. Moreover, disallowance made in the intimation under section 143(1) of the Act cannot be con…

DDIT, NEW DELHI vs. JAMNALAL BAJAJ FOUNDATION, NEW DELHI

In the result ground No. 2 and 3 of the appeal of the revenue are dismissed

ITA 1978/DEL/2013[2009-10]Status: DisposedITAT Delhi30 Jan 2017AY 2009-10

Bench: Shri H.S.Sidhu & Shri Prashant Maharishiddit, Jamnalal Bajaj Foundation, Trust Circle-Iv, C/O. Bajaj Auto Ltd., Vs. New Delhi B-60-61, Narina Industrial Area, Phase-Ii, New Delhi Pan:Aaatj0402B (Appellant) (Respondent)

For Appellant: Sh. SS Rana, CIT DRFor Respondent: Sh. Arvind Sonde, Adv
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 11(3)Section 11(3)(c)Section 143(3)Section 199Section 22(2)

…the Act. 9. The ld DR relied upon the order of the ld Assessing Officer whereas the ld AR relied upon the order of the ld CIT(A) and further stated that the issue is squarely covered in favour of the assessee by the decision of Hon'ble Calcutta High Court in 189 ITR 656. 10. We have carefully considered the rival contentions. The issue involved in these ground are that the contention of the revenue is that in the case of the assessee accumulated income was not utlised in specify period for specified purposes and therefore deemed income arise u/s 11(3)(c) and d of the Act and hence, he could not be eligible for d…