Dharmadeepti v. CIT

114 ITR 454Supreme Court of India1974#7202 most cited

What is Dharmadeepti v. CIT authority for?

Exemption from tax cannot be denied if the dominant purpose of the assessee is not the attainment of profit. Excess income, if any, must be ploughed back for development purposes and not be distributable among members.

15

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

Dharmadeepti v CIT · 114 ITR 454 · SC · tax exemption · purpose of attainment of profit · charitable trust · not for profit · development purpose

Sections most often in play

Section 11Section 12ASection 12AASection 142(1)Section 143(2)Section 143(3)Section 2(15)Section 260A

Judgments citing Dharmadeepti v. CIT

Deputy Commissioner of Income Tax (Exemptions)-1(1), Mumbai vs. Indian Institute for Human Settlements, Mumbai

ITA 2328/MUM/2024[2013-14]Status: DisposedITAT Mumbai16 Apr 2025AY 2013-14

Bench: Shri Narendra Kumar Billaiya & Shri Raj Kumar Chauhandcit (Exemptions)-1(1) Indian Institute For 6Th Floor, Mtnl Building Cumballa Human Settlements Hill, Dr. G D Deshmukh Marg, Vs. 2, Purnima Patel Compound, Peddar Road, Mumbai-400 026 L. J. Marg, Nepean Sea Road, Mumbai-400 006 Pan: Aacci0088F (Appellant) (Respondent)

Section 11Section 12ASection 143(2)Section 143(3)Section 2(15)Section 25Section 8Section 80G

…ommerce. The assessee has also relied on Circular No.11/2008 of CBDT and the following decisions 1. CIT vs. Sri Thyaga Brahma Gana Sabha [1991]-188 ITR 160 (Mad) 2. Gujarat State Co-operative Union vs. CIT [195 ITR 279] (Guj.) 3 Dharmadeepti vs. ČIT [1978]-114 ITR 454 (Chennai) 4 Soorya Educational Trust vs. ITO [2012]-22 taxmann.com 222. However, the assessee's contention is not acceptable as the pre-dominent objective has to be determined on the basis of activity conducted and not merely on the basis of Article of Association and Memorandum of Understanding. In the case of the assessee there is no education…

Varanasi Development Authority, Varanasee vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result appeal filed by assessee in ITA no

ITA 267/ALLD/2017[2014-15]Status: DisposedITAT Varanasi06 Jul 2022AY 2014-15

Bench: Shri Vijay Pal Rao & Shri Ramit Kochar

For Appellant: ShriAshishBansal, AdvocateFor Respondent: ShriSunil Bajpai, CIT- D.R
Section 11Section 12Section 12ASection 143(3)Section 2(15)

…Assessment Year: 2011-12, 2012-13, 2013-14 and 2014-15. M/s. Varanasi Development Authority v. ACIT,Circle-3, Varanasi,U.P. carrying on of any activity for profit". It is now well settled as a result of the decision of this Court in Dharmadeepti v. CIT [1974] 114 ITR 454 /[1978] Taxman 66 that the words "not involving the carrying on of any activity for profit" qualify or govern only the last head of charitable purpose and not the earlier three heads. Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of "charitable purpose…

Varanasi Development Authority, Varanasee vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result appeal filed by assessee in ITA no

ITA 266/ALLD/2017[2013-14]Status: DisposedITAT Varanasi06 Jul 2022AY 2013-14

Bench: Shri Vijay Pal Rao & Shri Ramit Kochar

For Appellant: ShriAshishBansal, AdvocateFor Respondent: ShriSunil Bajpai, CIT- D.R
Section 11Section 12Section 12ASection 143(3)Section 2(15)

…Assessment Year: 2011-12, 2012-13, 2013-14 and 2014-15. M/s. Varanasi Development Authority v. ACIT,Circle-3, Varanasi,U.P. carrying on of any activity for profit". It is now well settled as a result of the decision of this Court in Dharmadeepti v. CIT [1974] 114 ITR 454 /[1978] Taxman 66 that the words "not involving the carrying on of any activity for profit" qualify or govern only the last head of charitable purpose and not the earlier three heads. Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of "charitable purpose…

M/S. Varanasi Development Authority, Varanasi vs. Deputy Commissioner of Income Tax (Exemption), Varanasi

In the result appeal filed by assessee in ITA no

ITA 265/ALLD/2017[2012-13]Status: DisposedITAT Varanasi06 Jul 2022AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Ramit Kochar

For Appellant: ShriAshishBansal, AdvocateFor Respondent: ShriSunil Bajpai, CIT- D.R
Section 11Section 12Section 12ASection 143(3)Section 2(15)

…Assessment Year: 2011-12, 2012-13, 2013-14 and 2014-15. M/s. Varanasi Development Authority v. ACIT,Circle-3, Varanasi,U.P. carrying on of any activity for profit". It is now well settled as a result of the decision of this Court in Dharmadeepti v. CIT [1974] 114 ITR 454 /[1978] Taxman 66 that the words "not involving the carrying on of any activity for profit" qualify or govern only the last head of charitable purpose and not the earlier three heads. Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of "charitable purpose…

M/S. Varanasi Development Authority, Varanasi vs. Assistant Commissioner of Income Tax, Varanasi

In the result appeal filed by assessee in ITA no

ITA 264/ALLD/2017[2011-12]Status: DisposedITAT Varanasi06 Jul 2022AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Ramit Kochar

For Appellant: ShriAshishBansal, AdvocateFor Respondent: ShriSunil Bajpai, CIT- D.R
Section 11Section 12Section 12ASection 143(3)Section 2(15)

…Assessment Year: 2011-12, 2012-13, 2013-14 and 2014-15. M/s. Varanasi Development Authority v. ACIT,Circle-3, Varanasi,U.P. carrying on of any activity for profit". It is now well settled as a result of the decision of this Court in Dharmadeepti v. CIT [1974] 114 ITR 454 /[1978] Taxman 66 that the words "not involving the carrying on of any activity for profit" qualify or govern only the last head of charitable purpose and not the earlier three heads. Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of "charitable purpose…

Lucknow Development Authority, Lucknow vs. DCIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 439/LKW/2019[2016-17]Status: DisposedITAT Lucknow10 Mar 2022AY 2016-17

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…Hon’ble Supreme Court in the case of Queen's Education Society, Civil Appeal no. 5167 of 2008, dated 16.03.2015. Learned counsel submitted that exemption cannot be denied unless its purpose is of attainment of profit as held in the case of Dharmadeepti v CIT 114 ITR 454 (SC). Further, the excess income, if any in a year, is ploughed back for development purposes according to plan in subsequent years and is not distributable among members as in case of private real estate developers and colonizers. Hence, assessee exists solely for development purpose and not for profit making and cannot be construed to be engage…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 186/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…Hon’ble Supreme Court in the case of Queen's Education Society, Civil Appeal no. 5167 of 2008, dated 16.03.2015. Learned counsel submitted that exemption cannot be denied unless its purpose is of attainment of profit as held in the case of Dharmadeepti v CIT 114 ITR 454 (SC). Further, the excess income, if any in a year, is ploughed back for development purposes according to plan in subsequent years and is not distributable among members as in case of private real estate developers and colonizers. Hence, assessee exists solely for development purpose and not for profit making and cannot be construed to be engage…

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 185/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…Hon’ble Supreme Court in the case of Queen's Education Society, Civil Appeal no. 5167 of 2008, dated 16.03.2015. Learned counsel submitted that exemption cannot be denied unless its purpose is of attainment of profit as held in the case of Dharmadeepti v CIT 114 ITR 454 (SC). Further, the excess income, if any in a year, is ploughed back for development purposes according to plan in subsequent years and is not distributable among members as in case of private real estate developers and colonizers. Hence, assessee exists solely for development purpose and not for profit making and cannot be construed to be engage…

Lucknow Evelopment Authority, Lucknow vs. I.T.O., Lucknow

In the result, all the appeals are partly allowed

ITA 164/LKW/2019[2015-16]Status: DisposedITAT Lucknow10 Mar 2022AY 2015-16

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…Hon’ble Supreme Court in the case of Queen's Education Society, Civil Appeal no. 5167 of 2008, dated 16.03.2015. Learned counsel submitted that exemption cannot be denied unless its purpose is of attainment of profit as held in the case of Dharmadeepti v CIT 114 ITR 454 (SC). Further, the excess income, if any in a year, is ploughed back for development purposes according to plan in subsequent years and is not distributable among members as in case of private real estate developers and colonizers. Hence, assessee exists solely for development purpose and not for profit making and cannot be construed to be engage…

Lucknow Development Authority, Lucknow vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result, all the appeals are partly allowed

ITA 163/LKW/2019[2014-15]Status: DisposedITAT Lucknow10 Mar 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…Hon’ble Supreme Court in the case of Queen's Education Society, Civil Appeal no. 5167 of 2008, dated 16.03.2015. Learned counsel submitted that exemption cannot be denied unless its purpose is of attainment of profit as held in the case of Dharmadeepti v CIT 114 ITR 454 (SC). Further, the excess income, if any in a year, is ploughed back for development purposes according to plan in subsequent years and is not distributable among members as in case of private real estate developers and colonizers. Hence, assessee exists solely for development purpose and not for profit making and cannot be construed to be engage…

Pr. Commissioner of vs. M/S. Embassy Charitable Trust

In the result, the appeal fails and is hereby dismissed

ITA/458/2019HC Karnataka27 Jan 2022

Bench: ALOK ARADHE,M.G.S. KAMAL

Section 12ASection 260Section 80GSection 80G(5)(vi)

…ther the purpose of Trust or Institution involves the carrying on of any activity of profit. However, it would not be relevant where the purpose of the Trust is relief of the poor, education or medical relief, etc. (See: DHARMADEEPTI Vs. CIT' (1974) 114 ITR 454). 7. Section 12AA of the Act provides for procedure for registration. The Commissioner of Income Tax is required to satisfy himself about the objects of the Trust and genuineness of its activities and has to grant registration only if it is so satisfied. The scope of examination is confined in ascertaining whether the Trust is constituted…

M/S Guru Ram Dass Educational Society, Bathinda vs. The Commissioner of Income Tax (Exemption), Chandigarh

In the result, the assessee’s appeal is allowed

ITA 598/ASR/2016[]Status: DisposedITAT Amritsar03 Jun 2019

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi. T. A. No. 598/Asr/2016 Assessment Year: N.A.

For Appellant: Sh. Vineet Krishan (Adv.)For Respondent: Sh. Alok Kumar, CIT-DR
Section 10Section 12A

…otherwise constituting a charitable purpose. The Hon’ble Apex Court has, per a series of decisions, as in Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC); Indian Chamber of Commerce v. CIT [1975] 101 ITR 796 (SC); Dharmadeepti v. CIT [1978] 114 ITR 454 (SC); CIT v. Surat Art Silk Cloth Manufacturers’ Association [1980] 121 ITR 1 (SC); Aditanar Educational Institution v. CIT (Addl.) [1997] 224 ITR 310 (SC); American Hotel & Lodging Assn. Educational Institute v. CBDT [2008] 301 ITR 86 (SC); and Queens’ Educational Society v. CIT [2015] 372 ITR 699 (SC), the last also approving the decision by th…

ITO Trust Ward-IV vs. Misra Charitable Trust

In the result both the appeals of the revenue are allowed for statistical purposes

ITA 1222/DEL/2008[2004-2005]Status: DisposedITAT Delhi21 Jun 2016AY 2004-2005

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Sh. P Dam Kanunjna, Sr. DRFor Respondent: None
Section 11Section 12ASection 13(1)(c)

…as decided by a full bench of the Supreme Court in the case of Thiagarajar Charities v. Addl. CIT (1997) 225 ITR 1010, relying on decisions in the cases Addl. CIT v. Surat Art Silk Cloth Manufacturers’ Association (1980) 121 ITR 1 & Dharmadeepti v. CIT (1978) 114 ITR 454. Repayment of loan should be considered as application of income in view of the decision of the Karnataka High Court in the case o/Commissioner of Income Tax vs. Janmabhumi Press Trust [(2000) 242 ITR 703]. The assessing officer has ignored the representation of the appellant in this respect without adducing any reasons and has not given any just…

M/S Assisi Education Trust, Mangalore vs. CIT, Mangalore

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

ITA 730/BANG/2014[N.A.]Status: DisposedITAT Bangalore17 Jul 2015

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri V.K.Gurunathan, AdvocateFor Respondent: Shri Farhat Hussain Qureshi, CIT
Section 11Section 12(1)Section 12ASection 1A

…e main object of the assessee trust. In support of his contention he has relied upon the decision of the Hon’ble Supreme Court in the case of Addl.CIT Vs Surat Art Silk cloth manufacturers Association 121 ITR 1(SC) as well as in case of Dharmadeepti Vs CIT 114 ITR 454. Thus, the learned AR has pleaded the impugned order passed by the CIT is not sustainable under law and the assessee is entitle and eligible for grant of registration u/s 12AA of the IT Act, 1961. 5. On the other hand, learned DR has submitted that the CIT specifically issued the show cause notice to the assessee requiring the assessee to file…

M Madhusudan, L/R of Late Manohar N S, Bangalore vs. Commissioner of Income Tax, Bangalore V, Bangalore

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

ITA 1243/BANG/2014[2007-08]Status: DisposedITAT Bangalore17 Jul 2015AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri V.K.Gurunathan, AdvocateFor Respondent: Shri Farhat Hussain Qureshi, CIT
Section 11Section 12(1)Section 12ASection 1A

…e main object of the assessee trust. In support of his contention he has relied upon the decision of the Hon’ble Supreme Court in the case of Addl.CIT Vs Surat Art Silk cloth manufacturers Association 121 ITR 1(SC) as well as in case of Dharmadeepti Vs CIT 114 ITR 454. Thus, the learned AR has pleaded the impugned order passed by the CIT is not sustainable under law and the assessee is entitle and eligible for grant of registration u/s 12AA of the IT Act, 1961. 5. On the other hand, learned DR has submitted that the CIT specifically issued the show cause notice to the assessee requiring the assessee to file…

Dharmadeepti v. CIT (114 ITR 454) — Cited in 15 Judgments | BharatTax