Islamic Academy of Education v. State of Karnataka

6 SCC 697Reported decision2003#1824 most cited

What is Islamic Academy of Education v. State of Karnataka authority for?

Educational institutions that collect capitation fees or excessive donations for student admissions are not considered charitable institutions and are thus ineligible for tax exemptions under sections 11 and 10(23C) of the Income Tax Act.

63

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2004 to 2024.

Also referred to as

Islamic Academy of Education v. State of Karnataka · 6 SCC 697 · Section 11 · Section 10(23C) · capitation fees · admission donations · educational institution exemption · charitable institution status · public policy · breach of trust

Issues it is cited on

section 10(22)section 35acsection 11(4)section 115bbcsection 35aanonymous donationsection 2(45)section 60section 11(4a)rectification under section 154corpus fundsection 13(3)

Judgments citing Islamic Academy of Education v. State of Karnataka

MAHATMA GANDHI CHARITABLE MEDICAL TRUST,KOLHAPUR vs. THE INCOME TAX OFFICER, EXEMPTION WARD, KOLHAPUR

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

ITA 819/PUN/2024[2017-18]Status: DisposedITAT Pune11 Jun 2024AY 2017-18

Bench: Shri Inturi Rama Raoआयकर अपील सं. / Ita No.819/Pun/2024 "नधा"रण वष" / Assessment Year : 2017-18

For Appellant: NoneFor Respondent: Shri Abdesh Kumar Jha
Section 11Section 12ASection 139(1)Section 142(1)Section 144Section 68

…1987, therefore the appellant trust is not eligible for exemption u/s 11 as the practice of collection of capitation fees is also contrary to the law laid down by the Hon'ble Apex Court in the case of Islamic Academy of Education v. State of Karnataka [2003] 6 SCC 697. Thus, 3 the act of collection of donations in connection with admission of students for BDS course is contrary to the public policy which does not quality for exemption u/s.11 of the Act. The Coordinate Bench in the case of Sinhagad Technical 7. Education Society Vs. DCIT [2022] 139 taxmann.com 270 (Pune - Trib.) held that collection of fees fro…

THE COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, DELHI vs. M/S BIO-RAD LABORATORIES (SINGAPORE) PTE LTD

ITA/564/2023HC Delhi03 Oct 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…nts, they would be granted recognition. The respondents could not now be permitted to resile from that promise, as, based on the hopes and expectations held out by the statute, the petitioners have invested huge amounts of money. 31 (2002) 8 SCC 481 32 (2003) 6 SCC 697 33 (2005) 6 SCC 537 34 (2004) 5 SCC 583 Digitally Signed By:CHANDRASHEKHAR AN HARI SHANKAR Signing Date:22.04.2024 22:29 Signature Not Verified Digitally Signed By:AJIT KUMAR Signing Date:22.04.2024 22:30 Signature Not Verified WP(C) 12983/2022 & other batch matters Page 78 of 177 63. The impugned decision, submits Mr. Sharawat, has resulted in m…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 981/CHNY/2022[2019-2020]Status: DisposedITAT Chennai15 Sept 2023AY 2019-2020

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 980/CHNY/2022[2018-2019]Status: DisposedITAT Chennai15 Sept 2023AY 2018-2019

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 979/CHNY/2022[2017-2018]Status: DisposedITAT Chennai15 Sept 2023AY 2017-2018

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 978/CHNY/2022[2016-2017]Status: DisposedITAT Chennai15 Sept 2023AY 2016-2017

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 977/CHNY/2022[2015-2016]Status: DisposedITAT Chennai15 Sept 2023AY 2015-2016

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 976/CHNY/2022[2014-2015]Status: DisposedITAT Chennai15 Sept 2023AY 2014-2015

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

DCIT , CHENNAI vs. M/S SINDHI EDUCATIONAL SOCIETY ( MADRAS ), CHENNAI

In the result, appeals filed by the Revenue for all the assessment

ITA 975/CHNY/2022[2013-2014]Status: DisposedITAT Chennai15 Sept 2023AY 2013-2014

Bench: Shri. V. Durga Rao, Hon’Ble & Shri. Manjunatha. G, Hon’Ble

For Respondent: Mr.P. Sajit Kumar, JCIT
Section 11Section 11(1)(d)Section 2(24)(iia)

…for admission of students over and above the fees prescribed cannot be construed as charitable/educational institution........ Same view was taken by Apex Court in the case of Islamic Academy of Educations and another Vs State. of Karnataka & another (2003) 6 SCC 697. If the admissions were received compulsorily for admission of students, the assessee is not entitled for exemption either u/s 10(23C) or u/s 11 of the IT Act....." In the leading case of Queen's Educational Society Vs. Commissioner of Income Tax, reported in (2015) 8 SCC 47 relied upon by the assessee in its submission, the Apex Court held that if…

CONFRERE EDUCATIONAL SOCIETY,NOIDA vs. ITO (EXEMPTION), NOIDA

In the result, the appeal of the assessee is allowed

ITA 4464/DEL/2017[2012-13]Status: DisposedITAT Delhi19 Jun 2023AY 2012-13

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharma

Section 12ASection 250Section 251Section 56

…AIR 185 SC. (iii) Unnikrishnan J.P. & Ors. etc. vs. State of Andhra Pradesh & Ors. (1993) AIR 2178 SC (iv) TMA Pai Foundation & Ors. vs. State of Karnataka & Ors., (2002) 8 SCC 481 (v) Islamic Academy of Education & Anr. Vs. State of Karnataka & Ors. (2003) 6 SCC 697. (vi) PA Inamdar & Ors. State of Maharashtra & Ors. (2005) AIR 3226 SC.” 5. Ld. CIT (A) also discussed the provisions of Section 10(23C)(iv) & (v) and observed that, once the income of Educational institution are exempted u/s.10(23C), then legislature does not intend to give same benefit in Sections 11 & 12 again. According to him there is no conf…

M/S NEW NOBLE EDUCATIONAL SOCIETY vs. THE CHIEF COMMISSIONER OF INCOME TAX 1

The appeals are hereby dismissed, without order on costs

C.A. No.-003795-003795 - 2014Supreme Court19 Oct 2022

Bench: HON'BLE THE CHIEF JUSTICE

Section 10

…as so far not been regarded as a trade or business where profit is the motive. (State of Bombay v. R.M.D. Chamarbaugwala, AIR 1957 SC 699; T.M.A. Pai Foundation v. State of Karnataka, (2002) 8 SCC 481 : AIR 2003 SC 355; Islamic Academy of Education, (2003) 6 SCC 697). Section 2(15) of the Income-tax Act defines “charitable purpose” to include “education”. The sense in which the word “education” has been used in section 2(15) is the systematic instruction, schooling or training given to the young in preparation for the work of life. It also connotes the whole course of scholastic instruction which a person…

THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE vs. M/S SRI BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA , BAGALKOTE

In the result, the assessee’s appeals in ITA Nos

ITA 66/BANG/2018[2014-15]Status: DisposedITAT Bangalore29 Aug 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE vs. M/S SRI BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA , BAGALKOTE

In the result, the assessee’s appeals in ITA Nos

ITA 65/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Aug 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE vs. M/S SRI BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA , BAGALKOTE

In the result, the assessee’s appeals in ITA Nos

ITA 64/BANG/2018[2012-13]Status: DisposedITAT Bangalore29 Aug 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE vs. SRI V C CHARANTIMATH , BAGALKOT

In the result, the assessee’s appeals in ITA Nos

ITA 236/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Aug 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE vs. SRI.V.C.CHARANTIMATH , BAGALKOT

In the result, the assessee’s appeals in ITA Nos

ITA 235/BANG/2018[2012-13]Status: DisposedITAT Bangalore29 Aug 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2(2), BENGALURU vs. M/S. SRI. BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA, BAGALKOTE

In the result, the assessee’s appeals in ITA Nos

ITA 234/BANG/2018[2013-14]Status: DisposedITAT Bangalore29 Aug 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

SRI BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SAGHA,BAGALKOT vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, the assessee’s appeals in ITA Nos

ITA 2777/BANG/2017[2014-15]Status: DisposedITAT Bangalore29 Aug 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

SRI BASAVESHWAR VEERASHAIVA VIDYAVARDHAK SANGHA,BAGALKOT vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), , BENGALURU

In the result, the assessee’s appeals in ITA Nos

ITA 2776/BANG/2017[2013-14]Status: DisposedITAT Bangalore29 Aug 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

SRI BASAVESHWAR VEERSHAIVA VIDYAVARDHAK SANGHA,BAGALKOT vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), BENGALURU

In the result, the assessee’s appeals in ITA Nos

ITA 2775/BANG/2017[2012-13]Status: DisposedITAT Bangalore29 Aug 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 10Section 11Section 12ASection 35ASection 80G

…culture and heritage. Some of the State legislatures passed legislation prohibiting the collection of capitation fee and also made the same as a punishable offence. 6.5 The apex Court in the case of Islamic Academy of Education vs. State of Karnataka (2003) 6 SCC 697 directed all the State Governments to constitute a committee headed by an Hon'ble retired High Court Judge for prescribing fee structure for professional colleges. The apex Court further held that if any amount is charged other than the fee prescribed by the committee under any head or guise, the same would amount to capitation fee. Therefore, coll…

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