Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation

278 ITR 152High Court2005#2780 most cited

What is Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation authority for?

For charitable trusts claiming Section 11 exemption, Section 68 concerning cash credits does not apply to donations received. The non-submission or non-production of donor details does not automatically lead to an inference that the trust is introducing unaccounted money.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2026.

Also referred to as

Director of Income Tax v. Keshav Social and Charitable Foundation · 278 ITR 152 · Section 68 · Section 11 · charitable trust · donations · cash credits · unexplained money · donor identity · unaccounted money · corpus fund · Section 12A

Sections most often in play

Section 68Section 115BBESection 143(3)Section 133(6)Section 11Section 142(1)Section 143(2)Section 234B

Issues it is cited on

anonymous donationsection 115bbcsection 2(9)section 11(1)(d)section 69dcorpus donationcorpus fundsection 64section 113clarificatory amendmentsection 115bbsection 115b

Judgments citing Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation

Society for Welfare Awareness Research and Guidance, Delhi vs. ITO (Exemptions), Ward 2(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 4702/DEL/2019[2011-12]Status: DisposedITAT Delhi27 Apr 2022AY 2011-12

Bench: Shri R. K. Panda[Assessment Year: 2011-12]

Section 12ASection 133ASection 143(2)Section 147Section 148Section 68

…pplication where assessee had disclosed donations as its income. While relying on this proposition of law, their Lordships have followed the view taken by Hon'ble Delhi High Court in the case of DIT (Exemptions) v. Keshav Social & Charitable Foundation [2005] 278 ITR 152/146 Taxman 569 and the judgment of the Hon'ble Apex court in the case of S.RM.M.CT.M. Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635, in which it was held that section 68 of the Act has no application in such cases where the assessee has disclosed donations as its income. 18. Similarly in the case of DIT v. Hans Raj Samarak Society [201…

M/S. R N Shetty Trust, Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 2(3), Bangalore

In the result, both the appeals filed by assessee stands allowed for statistical purposes

ITA 428/BANG/2020[2013-14]Status: DisposedITAT Bangalore28 Mar 2022AY 2013-14

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ashok Kulkarni, Advocate
Section 11Section 12ASection 132Section 143(2)Section 143(3)

…re towards corpus, because ultimately the Trust has been acquiring a capital asset which will be of enduring nature. On the strength of the Hon'ble Delhi High Court decision in the case of Director Of Income Tax vs Keshav Social & Charitable Trust reported in 278 ITR 152, he contended that the absence of identity of some of the donors would not dis entitle the Trust from exemption. The direction demanded by the Assessing Officer can be gathered from the facts and circumstances of the case. When the assessee had issued the receipts, it also indicate that the amounts were received towards corpus donations and it is…

M/S. R N Shetty Trust, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 2(3), Bangalore

In the result, both the appeals filed by assessee stands allowed for statistical purposes

ITA 427/BANG/2020[2012-13]Status: DisposedITAT Bangalore28 Mar 2022AY 2012-13

Bench: Shri. Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ashok Kulkarni, Advocate
Section 11Section 12ASection 132Section 143(2)Section 143(3)

…re towards corpus, because ultimately the Trust has been acquiring a capital asset which will be of enduring nature. On the strength of the Hon'ble Delhi High Court decision in the case of Director Of Income Tax vs Keshav Social & Charitable Trust reported in 278 ITR 152, he contended that the absence of identity of some of the donors would not dis entitle the Trust from exemption. The direction demanded by the Assessing Officer can be gathered from the facts and circumstances of the case. When the assessee had issued the receipts, it also indicate that the amounts were received towards corpus donations and it is…

Assistant Commissioner of Income Tax (Exemption) Circle Bhopal, Bhopal vs. Mayank Welfare Society, Indore

In the result, Revenue’s appeal for the AY 2013-14

ITA 776/IND/2018[2015-16]Status: DisposedITAT Indore29 Oct 2021AY 2015-16

Bench: Shri Manish Borad & Ms. Madhumita Royvirtual Hearing Assessment Year: 2013-14

Section 115BSection 143(3)

…a) ITAT, Agra Bench “Income – U/s 2(24) of the Income-tax Act, 1961 – corpus Donation – Whether same is taxable – HELD – Same is not taxable as same is a capital receipt.” 5.Director of Income-tax (Exemption) vs. Keshav Social and Charitable Foundation (2005) 278 ITR 152 (Delhi High Court) “Exemption – Charitable purpose – Trust – Donations received in previous year – Assessee only required to show donations were voluntary – More than 75% of income used for charitable purposes in accordance with objects – Assessee duly registered under section 12A – list of bonors submitted – Incomplete details of donors does not…

The DCIT, (Exemption) Circle, Bhopal vs. M/S. Mayank Welfare Society, Bhopal

In the result, Revenue’s appeal for the AY 2013-14

ITA 232/IND/2017[2013-14]Status: DisposedITAT Indore29 Oct 2021AY 2013-14

Bench: Shri Manish Borad & Ms. Madhumita Royvirtual Hearing Assessment Year: 2013-14

Section 115BSection 143(3)

…a) ITAT, Agra Bench “Income – U/s 2(24) of the Income-tax Act, 1961 – corpus Donation – Whether same is taxable – HELD – Same is not taxable as same is a capital receipt.” 5.Director of Income-tax (Exemption) vs. Keshav Social and Charitable Foundation (2005) 278 ITR 152 (Delhi High Court) “Exemption – Charitable purpose – Trust – Donations received in previous year – Assessee only required to show donations were voluntary – More than 75% of income used for charitable purposes in accordance with objects – Assessee duly registered under section 12A – list of bonors submitted – Incomplete details of donors does not…

Shugan Chadra Kothari Trust, New Delhi vs. CIT(E), New Delhi

In the result Appeal of assessee allowed

ITA 4982/DEL/2019[2014-15]Status: DisposedITAT Delhi14 Feb 2020AY 2014-15

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri R.S. Singhvi, And Shri Satyajit Goel, AdvocatesFor Respondent: Shri Sanjay Goel, CIT-D.R
Section 12ASection 143(3)Section 2(15)Section 263

…disclosed in the income and expenditure account, it could not be considered as unaccounted income in the hands of the assessee. We rely upon the Judgment of the Hon’ble Delhi High Court in the case of DIT(E) vs. Keshav Social and Charitable Foundation [2005] 278 ITR 152 (Del.) in which it was held as under : “The assessee was a charitable trust providing medical advice for needy in various parts and remote villages of Uttar Pradesh. It was registered 12 ITA.No.4982/Del./2019 M/s. Shugan Chandra Kothari Trust, New Delhi. under section 12A of the Income-tax Act, 1961. For the assessment year 1991-92, the assesse…

Brijbasi Education and Welfarew Society, Mathura vs. Addl.CIT, Range-1, Ghaziabad

In the result ITA number 4573/del/2017 filed by the assessee for assessment year 2007 – 08 is dismissed

ITA 4573/DEL/2017[2007-08]Status: DisposedITAT Delhi18 Sept 2019AY 2007-08

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Soumitra Choudhary, AdvFor Respondent: Shri Arun Kumar Yadav, Sr. DR
Section 12Section 143Section 148Section 161Section 68Section 80

…s were produced before us. Therefore, the moot question that arises is whether the provisions of section 68 of the income tax act can be applied to a charitable trust or not. The honourable Delhi High Court in CIT vs Keshav social and charitable foundation in 278 ITR 152 has categorically held that:- “11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure o…

Brijbasi Education and Welfarew Society, Mathura vs. Addl.CIT, Range-1, Ghaziabad

In the result ITA number 4573/del/2017 filed by the assessee for assessment year 2007 – 08 is dismissed

ITA 4572/DEL/2017[2006-07]Status: DisposedITAT Delhi23 Aug 2019AY 2006-07

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Soumitra Choudhary, AdvFor Respondent: Shri Arun Kumar Yadav, Sr. DR
Section 12Section 143Section 148Section 161Section 68Section 80

…s were produced before us. Therefore, the moot question that arises is whether the provisions of section 68 of the income tax act can be applied to a charitable trust or not. The honourable Delhi High Court in CIT vs Keshav social and charitable foundation in 278 ITR 152 has categorically held that:- “11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure o…

Dy. Commissioner of Income Tax (Exemption), Lucknow vs. M/S Shri Ramswaroop Charitable Trust, Lucknow

In the result, appeal of the Revenue stands dismissed

ITA 557/LKW/2018[2014-15]Status: DisposedITAT Lucknow28 Jun 2019AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoorassessment Year:2014-2015

Section 11

…s, would be income in the hands of the assessee. If there is Full disclosure of the donation for whatever purpose and that the registration under Section 12-A is continuing and valid, exemptions cannot be denied. The assessee, a charitable trust, was 4 [2005] 278 ITR 152 (Delhi) .engaged in the activity of providing medical In the Delhi High Court in the advise to the poor and needy in various case of Director of Income Tax parts of the State. During the relevant (Exemption) Vs. Keshav Social previous year, the assessee was asked to and Charitable Foundation. furnish the details of donations received by it. Howev…

Lakshya Educational Trust, Ghaziabad vs. Addl. CIT, Range-1, Ghaziabad

In the result appeal of the assessee is dismissed

ITA 4128/DEL/2017[2010-11]Status: DisposedITAT Delhi04 Jun 2019AY 2010-11

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishilakshya Educational Trust, Vs. Addl. Cit, Range-1, Akhilesh Kumar, Adv., Chamber Ghaziabad No. 206-207, Ansal Satyam, Rdc Raj Nagar, Ghaziabad, Pan: Aatl6943M (Appellant) (Respondent)

For Appellant: Shri Akhilesh Kumar, AdvFor Respondent: Smt Naina Soin Kapil, Sr. DR
Section 11Section 143(3)Section 68

…ion 68 of the income tax act. 23. Further whether in the case of the assessee trust the provisions of the section 68 applies not. The learned CIT – A is considered the decision of the honourable Delhi High Court in case of [2005] 146 Taxman 569 (Delhi)/[2005] 278 ITR 152 (Delhi) in Director of Income-tax (Exemption)* v. Keshav Social & Charitable Foundation has held that :- “11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be i…

ACIT, Meerut vs. M/S. Shree Shiv Vankeshawar Educational & Social Welfare Trust, Meerut

ITA 4623/DEL/2012[2009-10]Status: DisposedITAT Delhi16 May 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K.N.Charyacit, Vs. Shree Shiv Vankeshawar Circle-2, Educational & Social Meerut Welfare Trust, A-217, Defence Colony, Meerut Pan: Aahts6246H (Appellant) (Respondent)

For Appellant: Shri K. Sampath, AdvFor Respondent: Shri S. S. Rana, CIT DR
Section 11Section 115Section 115BSection 12Section 68

…cannot be made u/s 68 of the income tax act in the case of the trust as it has already been offered as an income. The identical issue arose before the Hon‟ble Delhi High Court in the director of income tax exemption vs Keshav social and charitable foundation 278 ITR 152 wherein the Hon‟ble High Court held that „11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full d…

Apex Education Society, Ghaziabad vs. Addl. CIT, Ghaziabad

The appeal of the assessee is allowed

ITA 5633/DEL/2015[2010-11]Status: DisposedITAT Delhi29 Mar 2019AY 2010-11

Bench: Smt Beena A. Pillai & Shri Prashant Maharishiapex Education Society, Vs. Addl. Cit, C/O. Akhilesh Kumar, Range-1, Advocate, Ghaziabad Chamber No. 206-7, Ansal “Satyam”, Rdc Raj Nagar, Ghaziabad Pan: Aaaa7098M (Appellant) (Respondent)

For Appellant: Shri Akhilesh Kumar, AdvFor Respondent: Ms. Naina Soin Kapil, Sr
Section 11Section 115BSection 12(1)Section 143Section 68

…earned CIT – A or not. Even otherwise he stated that anonymous donation is identical to the provisions of section 68 of the income tax act. He further referred to the decision of the honourable Delhi High Court in case of Keshav Social & Charitable Foundation 278 ITR 152 ( del) confirmed in 394 ITR 496 and submitted that in that particular case the donation was credited to the income and expenditure account of the society and therefore it was held that when the amount has already been offered as an income it cannot be taxed u/s 68. She submitted that in the present case the assessee himself is saying that the abo…

Dy. Commissioner of Income Tax (Exemption), Lucknow vs. M/S Shri Ramswaroop Charitable Trust, Lucknow

In the result, appeal of the Revenue is dismissed

ITA 557/LKW/2017[2013-14]Status: DisposedITAT Lucknow08 Mar 2019AY 2013-14

Bench: Shri A.D Jain & Shri T.S. Kapoora.Y. 2013-14

Section 11Section 32Section 68

…receipts, other than corpus donations, would be income in the hands of the assessee. If 18 there is Full disclosure of the donation for whatever purpose and that the registration under Section 12-A is continuing and valid, exemptions cannot be denied. [2005] 278 ITR 152 (Delhi) The assessee, a charitable trust, was 4 In the Delhi High Court in the .engaged in the activity of providing case of Director of Income Tax medical advise to the poor and needy in . (Exemption) Vs. Keshav Social various parts of the State. During the and Charitable Foundation. relevant previous year, the assessee was asked to furnish the…

M/S Shree Bankey Bihari Educational Society (Regd), Ghaziabad vs. Addl. CIT, Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 2497/DEL/2013[2007-08]Status: DisposedITAT Delhi03 Aug 2018AY 2007-08

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 2497/Del/2013 : Asstt. Year : 2007-08 Shree Bankey Bihari Educational Vs Addl. Cit, Society (Regd.), Nh-24, Near Range-2, Masuri Canal, Dasna Mauri, Ghaziabad Ghaziabad-201302 (Appellant) (Respondent) Pan No. Aadts4243G Assessee By : Sh. Akhilesh Kumar, Adv. Revenue By : Sh. Kaushlendra Tiwari, Sr. Dr Date Of Hearing : 29.05.2018 Date Of Pronouncement : 03.08.2018 Order Per N. K. Saini, Am: This Is An Appeal By The Assessee Against The Order Dated 31.10.2012 Of The Ld. Cit(A), Ghaziabad.

For Appellant: Sh. Akhilesh Kumar, AdvFor Respondent: Sh. Kaushlendra Tiwari, Sr. DR
Section 143(3)

…ee. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified. The reliance was placed on the following case laws: " CIT, Gzb Vs Uttranchal Welfare Society (2014) 364 ITR 398 (All.) " DIT Vs Keshav Social & Charitable Foundation 278 ITR 152 (Del.) " Sunder Deep Ed. Society in ITA No. 2428/Del/2011 order dated 6.12.2013 " DIT Vs Sri Belimatha Mahasamsthana Socio Cultural and Educational Trust 20 Taxmann.com 694 (Kar.) " DIT Vs Hansraj Smarak Society in ITA No. 534/2012 order dated 18.09.2012 (Del.) " ACIT Vs Shree Ganpati Ed. Society in ITA No. 2655/Del/2011 order dated 28.09.2012 "…

Nav Nirman Kosh, Kolkata vs. CIT(Exemption) Kolkata, Kolkata

In the result, appeal of assessee is allowed

ITA 7/KOL/2017[2011-12]Status: DisposedITAT Kolkata05 Feb 2018AY 2011-12

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

Section 12ASection 133A

…on 68 of the Act has no application where the assessee has disclosed donations as its income. The Hon’ble Allhabad High Court has followed the view taken by the Hon’ble Delhi High Court in the case of DIT (Exemption) Vs. Keshav Social & Charitable Foundation, 278 ITR 152 and the decision of the Hon’ble Apex Court in the case of S.R.M.M.C.T.M. Tiruppani Trust Vs. CIT 230 ITR 636. It is not the case of the revenue that donations received by the assessee were not applied for charitable purposes. The allegation of the revenue is that the assessee received donation in lieu of cash from M/s. Herbicure but in order to s…

M/S. Mitra Parishad, Kolkata vs. CIT (Exemptions), Kolkata

In the result, appeal of assessee is allowed

ITA 2434/KOL/2016[-------]Status: DisposedITAT Kolkata06 Sept 2017

Bench: "ी ऐ. ट". वक", "यायीक सद"य एवं/And "ी एम .बालागणेश, लेखा सद"य) [Before Shri A. T. Varkey, Jm & Shri M. Balaganesh, Am]

Section 12ASection 133ASection 80G(5)(vi)

…on 68 of the Act has no application where the assessee has disclosed donations as its income. The Hon’ble Allhabad High Court has followed the view taken by the Hon’ble Delhi High Court in the case of DIT (Exemption) Vs. Keshav Social & Charitable Foundation, 278 ITR 152 and the decision of the Hon’ble Apex Court in the case of S.R.M.M.C.T.M. Tiruppani Trust Vs. CIT 230 ITR 636. We note that the assessee has shown the donation as corpus donation and had applied the same for advancing money for land and building as is evident from the balance sheet as 9 Mitra Parishad, AY -- at 31.03.2011 placed at page 73 of the…

ACIT, Karnal vs. M/S Galaxy Global Educational Trsut, Kurukshetra

In the result both the appeals of the revenue are dismissed

ITA 2652/DEL/2013[2009-10]Status: DisposedITAT Delhi06 Feb 2017AY 2009-10

Bench: Shri P.K. Bansal & Shri. C.M. Gargassessment Year: 2009-10 Acit Galaxy Global Educational Trust Central Circle Village Dinarpur Vs. Karnal Kurukshetra

For Appellant: Sh. A.K. Saroha, CIT (DR)For Respondent: Sh. Amol Sinha, Advocate, Sh. Ashok Jain
Section 11Section 13Section 68Section 69Section 69C

…ontended that the CIT(A) granted relief to the assessee on justified and correct reasons thus the same was kindly be upheld. He also placed reliance on the decision of Hon’ble Delhi High Court in the case of DIT (E) vs. Keshav Social and Charitable Foundation 278 ITR 152 (Delhi) and DIT (E) vs. Ronak Education Foundation 294 ITR 76 (Delhi). 7. Placing rejoinder to the above submissions the Ld. DR contended that first time the trust stated about corpus donations on 9.7.2011 after two years of search which was conducted on 7.7.2009. He further stated that the Ld. DR could not controvert this fact that the building…

ADIT (E), New Delhi vs. Unitech South City Educational Charitable Trust, New Delhi

The appeal is dismissed

ITA 2873/DEL/2011[2003-04]Status: DisposedITAT Delhi23 Sept 2015AY 2003-04

Bench: Shri I.C. Sudhir & Shri Inturi Rama Rao Assessment Year: 2003-04 Adit(E), Vs. Unitech South City Educational Trust Circle-Iv, Charitable Trust, New Delhi. 6-Co,,Unity Centre, Saket, New Delhi. (Pan: Aaatu1693H) (Appellant) (Respondent) Cross Obj. No. 308/Del/2011 ( In Ita No. 2873/Del/2011) Assessment Year: 2003-04 Unitech South City Educational Vs. Adit(E), Charitable Trust, Trust Circle-Iv, 6-Co,,Unity Centre, Saket, New Delhi. New Delhi. (Pan: Aaatu1693H) (Appellant) (Respondent)

For Appellant: Shri J.P. Chandrakar, Sr. DR
Section 11(1)(a)Section 11(1)(d)Section 68

…nue expenditure given under Schedule-V. The Learned AR submitted further that the income applied was more than alleged income received by way of corpus donation. He placed reliance on the following decisions: i) DIT vs. Keshav Social & Charitable Foundation – 278 ITR 152 (Delhi); ii) CIT vs. Sadhana Foundation in ITA No. 827/2011 dated 07.07.2011; iii) CIT vs. O.P. Suri Memorial Education Society in ITA Nos. 1754 & 1755/2010 and 206/2011 – upholding decision of ITAT in the case of DCIT vs. Sadhana Foundation in ITA No.2704/Del/2010 dated 08.10.2010; iv) DIT vs. Moti Bagh Mutual Aid Education – 298 ITR 190 (Del…

Director of Income Tax vs. Hans Raj Samarak Society

Accordingly, it is held that the ld. CIT (Appeals) rightly allowed

ITA/534/2012HC Delhi18 Sept 2012
Section 11(1)Section 11(1)(a)Section 11(3)Section 115BSection 13(7)Section 68

…e Tribunal held that Section 68 cannot be applied as the amount has already been shown by the assessee as income. The Tribunal referred to the judgment of this Court in Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation, (2005) 278 ITR 152. 4. The aforesaid discussion would show that if the Revenue’s appeal is accepted, the assessee would be brought to income tax but at the same time the capital expenditure will have to be allowed as a deduction as application of 2012:DHC:5842-DB ITA 534/2012 Page 4 of 4 income. Further, the donations, as…

Director of Income Tax vs. Hans Raj Samarak Society

Accordingly, it is held that the ld. CIT (Appeals) rightly allowed

ITA - 534 / 2012HC Delhi18 Sept 2012
Section 11(1)Section 11(1)(a)Section 11(3)Section 115BSection 13(7)Section 68

…e Tribunal held that Section 68 cannot be applied as the amount has already been shown by the assessee as income. The Tribunal referred to the judgment of this Court in Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation, (2005) 278 ITR 152. 4. The aforesaid discussion would show that if the Revenue’s appeal is accepted, the assessee would be brought to income tax but at the same time the capital expenditure will have to be allowed as a deduction as application of 2012:DHC:5842-DB ITA 534/2012 Page 4 of 4 income. Further, the donations, as…