CIT v. Programme for Community Organisation

228 ITR 620High Court1997#1545 most cited

What is CIT v. Programme for Community Organisation authority for?

For charitable or religious trusts, income for exemption under Sections 11 and 12 must be computed on a commercial basis, not head-wise as per Section 14, treating expenditure as a charge against income. The net income, along with non-corpus donations, forms the eligible base for determining the application of funds and the permissible accumulation under Section 11(1)(a).

73

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Programme for Community Organisation · Section 11 · Section 12 · Section 11(1)(a) · Section 14 · commercial computation of trust income · accumulation of income · charitable trust exemption · head-wise income computation · Section 12AA · computation of income for trusts · non-corpus donations

Sections most often in play

Section 11(1)(a)Section 11(4A)Section 12AASection 142(1)Section 143(2)Section 2(15)

Issues it is cited on

section 14(2)section 2(17)section 62section 80g(5b)section 11(1)(d)accumulation of incomesection 11(1)(a)section 115bbcsection 80g(2)anonymous donationsection 11(1)section 11(5)

Judgments citing CIT v. Programme for Community Organisation

M/S Gokula Education Foundation Medical, Bangalore vs. Additional Director of Income Tax Range-17, Bangalore

In the result, appeal of the assessee is partly allowed

ITA 946/BANG/2017[2011-12]Status: DisposedITAT Bangalore25 Jul 2022AY 2011-12

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2011-12

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri T. Roumuan Paite, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 11(2)Section 12ASection 139(1)Section 143(2)Section 143(3)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

M/S. Amara Jyothi Education Trust, Bangalore vs. Deputy Director of Income Tax, Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 698/BANG/2017[2011-12]Status: DisposedITAT Bangalore21 Jun 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri V. Chandrashekar
Section 11(1)(a)Section 12ASection 143(3)Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA Nos. 690 & 698/Bang/2017 Assessment Years : 2010-11 & 2011-12 M/s. Amara Jyothi Education The Deputy Trust, Director of Basavanapura Road, Income Tax Devasandra, (Exemptions), Krishnarajapuram Hobli, Circle – 17 (1), Bangalore – 560 036. Vs. Bangalore. PAN: AABTA4935F APPELLANT RESPONDENT : Shri V. Chandrashekar, Assessee by Advocate : Shri V.S. Chakrapani, CIT- Revenue by DR Date of Hearing : 01-06-2022 Date of Pronouncement : 21-06-2022 ORDER PER BEENA PILLAI, JUD…

M/S. Amara Jyothi Education Trust, Bangalore vs. Deputy Director of Income Tax, Bangalore

In the result, both the appeals filed by the assessee stands allowed

ITA 690/BANG/2017[2010-11]Status: DisposedITAT Bangalore21 Jun 2022AY 2010-11

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri V. Chandrashekar
Section 11(1)(a)Section 12ASection 143(3)Section 250

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA Nos. 690 & 698/Bang/2017 Assessment Years : 2010-11 & 2011-12 M/s. Amara Jyothi Education The Deputy Trust, Director of Basavanapura Road, Income Tax Devasandra, (Exemptions), Krishnarajapuram Hobli, Circle – 17 (1), Bangalore – 560 036. Vs. Bangalore. PAN: AABTA4935F APPELLANT RESPONDENT : Shri V. Chandrashekar, Assessee by Advocate : Shri V.S. Chakrapani, CIT- Revenue by DR Date of Hearing : 01-06-2022 Date of Pronouncement : 21-06-2022 ORDER PER BEENA PILLAI, JUD…

Rajiv Gandhi Charitable Trust, New Delhi vs. JCIT (Exemption), Range- 2, New Delhi

In the result, the appeal of the assessee is allowed

ITA 5196/DEL/2018[2014-15]Status: DisposedITAT Delhi31 May 2022AY 2014-15

Bench: Sh. Anil Chaturvedi & Sh. Narender Kumar Choudhryrajiv Gandhi Charitable Vs. Jcit (Exemption) Trust, Jawahar Bhawan, Range – 2 3Rd Floor, Rajendra Prasad New Delhi Road, New Delhi

Section 12ASection 143(3)Section 80G(5)(vi)

…xemption under section 11(1).” 10. We further find that in the following decisions, it has been held that the income of the charitable assessees needs to be computed on the basis of commercial principles: • CIT vs. Programme for Community Organisation (1997) 228 ITR 620 (Ker.) since approved by the apex court (reported at (2001) 248 ITR 1 (SC) • CIT v. Rao Bahadur Calavala Cunnan Chetty Charities (135 ITR 485)(Mad); • CIT v. Sheth Manilal Ranchhoddas Vishram Bhavan Trust (70 taxman 228) (Guj) • CIT v. Institute of Banking Personnel Selection (131 taxman 386)(Bom). 11. We further find that Clause (6) has been in…

The ACIT, (Exemption) Circle-1, Ahmedabad vs. Vyakti Vikas Kendra India, Ahmedabad

The appeal of the Revenue is dismissed

ITA 687/AHD/2019[2008-09]Status: DisposedITAT Ahmedabad12 Jan 2022AY 2008-09
For Appellant: Shri S. N. Soparkar, Sr. Advocate with Shri Parin ShahFor Respondent: Shri Alpesh Parmar, Sr. D.R
Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 12ASection 234BSection 250(6)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502: (1997) 228 ITR 620 (Ker)(supra) wherein it is held as under: "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such pu…

Apeejay Trust, Kolkata vs. I.T.O. (Exemption), Ward-1(4), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2076/KOL/2019[2013-14]Status: DisposedITAT Kolkata08 Dec 2021AY 2013-14

Bench: Shri A. T. Varkey & Shri Manoj Kumar Aggarwal, Am]

Section 11Section 11(1)(a)Section 12A

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

M/S. C R Nagappa and Sons, Bangalore vs. Deputy Commissioner of Income Tax (CPC), Bangalore

Accordingly these Grounds raised by assessee is allowed for statistical purposes

ITA 701/BANG/2020[2015-16]Status: DisposedITAT Bangalore17 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2015-16

For Appellant: Shri Sandeep Chalapathy, C.AFor Respondent: Shri Kannan Narayanan, JCIT (DR)
Section 11Section 11(1)(a)Section 12ASection 143Section 143(1)Section 154Section 24

…is limited to correct amount of income from house property, whether it should be gross rent of Rs.2,63,675 or the net income after deducting outgoings and depreciation.” ………………… ………………… “Shri V.H. Patil further submitted that the Kerala High Court (see [1997] 228 ITR 620), in the same case, has referred to the Board’s Circular dated June 19, 1968, on the same subject and observed that “income” for the purposes of section 11(1), should be understood in its commercial sense. It was held by the Kerala High Court that 25 per cent of gross amount of Rs. 2,57,376 should be accumulated, and this finding has been confirm…

Jan Priya Trust, Kolkata vs. I.T.O.(Exemption)-1(1), Kolkata

In the result, the appeal of the assessee is partly allowed as indicated above

ITA 903/KOL/2019[2012-13]Status: DisposedITAT Kolkata21 Oct 2020AY 2012-13

Bench: Shri P.M. Jagtap(Kz) &Shri A. T. Varkey, Jm] Assessment Year: 2012-13 Jan Priya Trust Vs. Income-Tax Officer (Exemption), Ward- (Pan: Aaatj0335M) 1(1), Kolkata.

Section 11Section 11(1)(a)Section 12A

…or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier affirmed the decision of Kerala High Court in CIT v. Programme for Community Organisation [1997] 228 ITR 620 (Ker) ; [1997] 141 CTR 502 (Ker) wherein it is held as under (page 623 of 228 ITR) : "At the outset, the statutory language of section 11 (1 )(a) of the Incometax Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation…

Shree Ram Trust, Kolkata vs. I.T.O., Ward-1(3), Kolkata

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

ITA 2496/KOL/2019[2012-13]Status: DisposedITAT Kolkata22 May 2020AY 2012-13

Bench: Shri A. T. Varkey, Jm ]

Section 11(1)Section 11(1)(a)Section 11(1)(d)

…or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier affirmed the decision of Kerala High Court in CIT v. Programme for Community Organisation [1997] 228 ITR 620 (Ker) ; [1997] 141 CTR 502 (Ker) wherein it is held as under (page 623 of 228 ITR) : "At the outset, the statutory language of section 11 (1 )(a) of the Income­tax Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relatio…

Nandalal Tolani Charitable Trust, Mumbai vs. ADIT (E) - II (2), Mumbai

In the result, appeal of the assessee is dismissed

ITA 6949/MUM/2018[2011-12]Status: DisposedITAT Mumbai15 Jan 2020AY 2011-12

Bench: Shri Mahavir Singh, Jm & Shri M.Balaganesh, Am M/S. Nandlal Tolani Vs. Asst. Director Of Income Charitable Trust Tax (Exem.)Ii(2), Mumbai 10-A, Bakhtawar R.P.Goenka Marg Nariman Point, Mumbai – 400 021 Pan/Gir No. Aaatn0043Q (Appellant) .. (Respondent)

Section 11Section 11(2)Section 143(3)Section 2(45)Section 24Section 45

…IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH MUMBAI BEFORE SHRI MAHAVIR SINGH, JM & SHRI M.BALAGANESH, AM M/s. Nandlal Tolani Vs. Asst. Director of Income Charitable Trust Tax (Exem.)II(2), Mumbai 10-A, Bakhtawar R.P.Goenka Marg Nariman Point, Mumbai – 400 021 PAN/GIR No. AAATN0043Q (Appellant) .. (Respondent) Assessee by Shri Venkatraman Revenue by Ms. Kavita P Kaushik Date of Hearing 09/01/2020 Date of Pronouncement 15/01/2020 आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.6949/Mum/2018 for A.Y.2011-12 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-1, Mumbai in…

Improvement Trust, Fatehabad vs. ITO (Exemptions), Rohtak

Appeal of the assessee is partly allowed

ITA 6334/DEL/2016[2013-14]Status: DisposedITAT Delhi14 Jan 2020AY 2013-14

Bench: Shri Prashant Maharishi & Shri K.N.Charyimprovement Trust Fatehabad, Vs. Ito(Exemptions), Near Bus Stand, Rohtak Fatehabad Pan: Aaati6435P (Appellant) (Respondent)

For Appellant: Shri Ashok Goyal, AdvFor Respondent: Shri Sanjog Kapoor, Sr. DR
Section 11Section 12Section 143Section 24

…in the commercial sense. The said Circular has been found by the hon'ble courts of law as representing the correct interpretation of the relevant provisions and the requirement of the la w, as in the case of CIT vs. Programme for Community Organisation [1997] 228 ITR 620 (Ker), since approved by the apex court (reported at [2001] 248 ITR 1 (SC), to which (latter) decision reference stands also made by the Id. CIT(A). This aspect of the matter, i. e., the manner of computation of income of a charitable or religious trust/institution which has to be applied for the said purposes, has been a subject matter of a numb…

M/S S.Kanehialall Lohia Trust, Kolkata vs. I.T.O., Ward-1(4), Kolkata

In the result, both the appeals of assessee are allowed

ITA 814/KOL/2019[2014-15]Status: DisposedITAT Kolkata10 Jan 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm]

Section 11Section 11(1)(a)Section 142(1)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

M/S S.Kanehialall Lohia Trust, Kolkata vs. I.T.O., Ward-1(4), Kolkata

In the result, both the appeals of assessee are allowed

ITA 813/KOL/2019[2013-14]Status: DisposedITAT Kolkata10 Jan 2020AY 2013-14

Bench: Shri A. T. Varkey, Jm]

Section 11Section 11(1)(a)Section 142(1)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

ACIT-(E), Circle-1, Bangalore vs. M/S. Bhagwan Mahaveer Memorial Jain Educational and Cultural Trust, Bangalore

In the result, the appeal of the Revenue are dismissed while the appeals by the assessee are partly allowed

ITA 1514/BANG/2016[2010-11]Status: DisposedITAT Bangalore21 Aug 2019AY 2010-11

Bench: Shri N.V. Vasudevan, Vice- & Shri Jason P.Boaz

For Appellant: Shri H.N Khincha, C.AFor Respondent: Shri Pradeep Kumar, CIT (DR)
Section 143(3)Section 32Section 35(2)(iv)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

Nemi Chand Jain Educational Society, New Delhi vs. ITO, Ward- 2(4), New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 7018/DEL/2018[2015-16]Status: DisposedITAT Delhi06 May 2019AY 2015-16
For Appellant: Sh. K. Sampath, Adv. &For Respondent: Sh. S. L. Anuragi, Sr. DR
Section 10Section 11Section 11(1)Section 11(1)(a)Section 11(7)

…portion of income which has been taken away by deduction at source on the ground that amount has not been spent or accumulated for the purpose of charity. Further, the Hon’ble Kerala High Court in the case of CIT Vs Programme for Community Organization (1997) 228 ITR 620 (Ker.) has held that Board of Revenue has understood that it would be incorrect to assign to the word “income” used u/s 11(1)(a) of the Act, the same meaning as assigned to the expression “total income” in Section 2(45) of the Act. In case of business held under a trust, the income disclosed by the accounts will be eligible for exemption u/s 11(1…

Nandlal Tolani Charitable Trust, Mumbai vs. ITO (E)2(1), Mumbai

In the result, appeal filed by the assessee is dimissed

ITA 106/MUM/2016[2012-13]Status: DisposedITAT Mumbai29 Mar 2019AY 2012-13

Bench: Shri Sandeep Gosain () & Shri G Manjunatha () Nandlal Tolani Charitable Vs Ito (E)-2(1), Mumbai Trust, 10-A, Bhkhtawar, Nariman Point, Mumbai 400 021 Pan : Aaatn0043Q Appellant Respondednt

Section 11Section 11(2)Section 12ASection 24

…in the commercial sense. The said Circular has been found by the hon'ble courts of law as representing the correct interpretation of the relevant provisions and the requirement of the la w, as in the case of CIT vs. Programme for Community Organisation [1997] 228 ITR 620 (Ker), since approved by the apex court (reported at [2001] 248 ITR 1 (SC), to which (latter) decision reference stands also made by the Id. CIT(A). This aspect of the matter, i. e., the manner of computation of income of a charitable or religious trust/institution which has to be applied for the said purposes, has been a subject matter of a numb…

Deputy Commissioner of Income Tax(E), Circle-1, Bangalore vs. M/S Krupanidhi Educational Trust, Bangalore

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

ITA 1683/BANG/2017[2012-13]Status: DisposedITAT Bangalore31 Dec 2018AY 2012-13

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumarassessment Year : 2012-13

For Appellant: Shri V. Narendra Sharma, AdvocateFor Respondent: Shri R.N. Siddappaji, Addl. CIT (DR)
Section 11Section 15Section 234Section 70

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER Assessment Year : 2012-13 M/s. Krupanidhi Education Trust, The Assistant # Chikkabellandur, Carmelram Commissioner of Income Post, VarthurHobli, Off. Sarjapur vs. Tax [Exemptions], Road, Circle – 1, Bangalore – 560 035. Bangalore. PAN: AAATK1211B APPELLANT RESPONDENT Assessment Year : 2012-13 M/s. Krupanidhi Educational The Deputy Commissioner of Trust, Income Tax (E), No. 05, Sarjapura Main Road, vs. Circle – 1, Koramangala, Bangalore. Bangalore – 560 034. PAN: AA…

M/S. Krupanidhi Education Trust, Bangalore vs. Assistant Commissioner of Income Tax, (Exemptions), Circle-1, Bangalore

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

ITA 1637/BANG/2017[2012-13]Status: DisposedITAT Bangalore31 Dec 2018AY 2012-13

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumarassessment Year : 2012-13

For Appellant: Shri V. Narendra Sharma, AdvocateFor Respondent: Shri R.N. Siddappaji, Addl. CIT (DR)
Section 11Section 15Section 234Section 70

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER Assessment Year : 2012-13 M/s. Krupanidhi Education Trust, The Assistant # Chikkabellandur, Carmelram Commissioner of Income Post, VarthurHobli, Off. Sarjapur vs. Tax [Exemptions], Road, Circle – 1, Bangalore – 560 035. Bangalore. PAN: AAATK1211B APPELLANT RESPONDENT Assessment Year : 2012-13 M/s. Krupanidhi Educational The Deputy Commissioner of Trust, Income Tax (E), No. 05, Sarjapura Main Road, vs. Circle – 1, Koramangala, Bangalore. Bangalore – 560 034. PAN: AA…

The Income Tax Officer, Ward-2, Bangalore vs. M/S. Rams Education Foundation, Bangalore

In the result, the appeal of the assessee is allowed and that of the revenue is dismissed

ITA 1464/BANG/2017[2012-13]Status: DisposedITAT Bangalore23 Mar 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoassessment Year : 2012-13

For Appellant: Shri S.V. Ravishankar, AdvocateFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT
Section 11Section 11(1)Section 11(1)(a)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…

M/S Rams Education Foundation, Bangalore vs. Income Tax Officer Ward-2 (Exemption), Bangalore

In the result, the appeal of the assessee is allowed and that of the revenue is dismissed

ITA 1381/BANG/2017[2012-13]Status: DisposedITAT Bangalore23 Mar 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoassessment Year : 2012-13

For Appellant: Shri S.V. Ravishankar, AdvocateFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT
Section 11Section 11(1)Section 11(1)(a)

…Act. Any amount or expenditure, which was application of income, is not to be considered for determining twenty five per cent to be accumulated. Their Lordships, as noted earlier, affirmed the decision of Kerala High Court in (1997) 141 CTR (Ker) 502 : (1997) 228 ITR 620 (Ker) (supra) wherein it is held as under : "At the outset, the statutory language of s. 11(1)(a) of the IT Act, 1961, relates to the income derived by the trust from property. The trust is required to be wholly for charitable or religious purposes, and the income is expected to have relation to the extent to which such income is applied to such…