Nachimuthu Industrial Association v. CIT

235 ITR 190Supreme Court of India1999#7343 most cited

What is Nachimuthu Industrial Association v. CIT authority for?

Expenditure claimed under section 10(23C) must be actual expenditure made during the year to be treated as an application, and provisions booked by the assessee cannot be allowed as such.

15

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2024.

Also referred to as

Nachimuthu Industrial Association v. CIT · 235 ITR 190 · section 10(23C) · application of income · actual expenditure · provision for liability · charitable trusts

Sections most often in play

Section 11Section 11(5)Section 13(1)(d)Section 145(3)

Judgments citing Nachimuthu Industrial Association v. CIT

Assistant Commissioner of Income Tax, Exemptions, Circle, Jaipur, Jaipur Rajasthan vs. Navratan Vidha Mandir Shiksha Samiti, Jaipur Rajasthan

In the result appeal filed by the Department is dismissed and the C

ITA 201/JPR/2024[2012-13]Status: DisposedITAT Jaipur27 Sept 2024AY 2012-13

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri P.C.Parwal, CAFor Respondent: Shri Arvind Kumar, CIT-DR
Section 11Section 11(5)Section 13(1)(d)Section 145(3)

…s to the grounds of appeal raised hereinabove. 1. CIT vs Divine Light Mission 278 ITR 659 (Del.) 2. Surat City Gymkhiana vs DCIT 254 ITR 744 (Guj) 3. CIT vs Sir M. Visveswaraya Educational Trust 319 ITR 425((Karn) 4. Nachimuthu Industrial Association Vs. CIT 235 ITR 190 5. CIT vs VGP Foundation 262 ITR 187 (Mad.) 6. S.N. Namasivaym Chettiar vs CIT 38 ITR 579 (SC) 3.3 On the other hand, the ld.AR supported the order of the ld. CIT(A) and submitted that the ld.CIT(A) is justified in holding that while development fund is a capital receipt and it would not be added to the gross receipt in the Income & Expenditure…

M.P.Birla Institute of Fundamental Reserch., Kolkata vs. DCIT, Exemption-Cir-1(1), Kol, Kolkata

In the result, both the appeals of the assessee are allowed

ITA 479/KOL/2023[2018-19]Status: DisposedITAT Kolkata11 Aug 2023AY 2018-19

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 11Section 11(1)(a)Section 143(3)

…enditure u/s. 10(23C) of the Act cannot be allowed this claim since the provision booked by the assessee has not been applied by the assessee. For that he relied on the decision of Hon’ble Supreme Court in the case of Nachimuthu Industrial Association Vs. CIT 235 ITR 190. According to him, only the actual expenditure made during the year can be treated as application and, therefore, he disallowed the claim of the assessee and made addition. The Ld. CIT(A) has simply confirmed the same. We note that assessee’s case is that the provision for gratuity has been done as per the actuarial valuation and as such it is no…

M.P.Birla Institute of Fundamental Reserch., Kolkata vs. DCIT, Exemption-Cir-1(1), Kol, Kolkata

In the result, both the appeals of the assessee are allowed

ITA 478/KOL/2023[2015-16]Status: DisposedITAT Kolkata11 Aug 2023AY 2015-16

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 11Section 11(1)(a)Section 143(3)

…enditure u/s. 10(23C) of the Act cannot be allowed this claim since the provision booked by the assessee has not been applied by the assessee. For that he relied on the decision of Hon’ble Supreme Court in the case of Nachimuthu Industrial Association Vs. CIT 235 ITR 190. According to him, only the actual expenditure made during the year can be treated as application and, therefore, he disallowed the claim of the assessee and made addition. The Ld. CIT(A) has simply confirmed the same. We note that assessee’s case is that the provision for gratuity has been done as per the actuarial valuation and as such it is no…

Sitaram Bhartia Institute of Science & Research, Kolkata vs. D.C.I.T.(Exemption), Circle-11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 202/KOL/2020[2013-14]Status: DisposedITAT Kolkata04 Jan 2023AY 2013-14

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 11Section 11(1)(a)

…enditure u/s. 10(23C) of the Act cannot be allowed this claim since the provision booked by the assessee has not been applied by the assessee. For that he relied on the decision of Hon’ble Supreme Court in the case of Nachimuthu Industrial Association Vs. CIT 235 ITR 190. According to him, only the actual expenditure made during the year can be treated as application and, therefore, he disallowed the claim of the assessee and made addition. The Ld. CIT(A) has simply confirmed the same. We note that assessee’s case is that the provision for gratuity has been done as per the actuarial valuation and as such it is no…

Apeejay Education Trust, Kolkata vs. D.C.I.T.(Exemption), Circle-1, Kolkata

In the result, the appeal of the assessee is allowed

ITA 2075/KOL/2019[2012-13]Status: DisposedITAT Kolkata22 Jul 2021AY 2012-13

Bench: Hon’Ble Shri P. M. Jagtap & Hon’Ble Shri A. T. Varkey, Jm]

Section 10Section 11Section 11(1)(d)

…lated to business and profession, and not with any trust or charitable activity i.e. exempted entities u/s.12A/12AA or 10(23C) of the Act. However, the AO noted that the Hon'ble Supreme Court in the case of Nachimuthu Industrial Association vs CIT reported in 235 ITR 190 [1999] obseved that the provision cannot be allowed as application. And only the actual expenditures made during the year can be treated as application. However, AO noted that such excess accumulation will also be exempt subject to 3rd proviso of See 10(23C) of the Act. Therefore, the AO disallowed Rs. 33,16,214/- as expenses. 4.4. Aggrieved the…

Commisisoner of Income Tax vs. Ohio University Christ College

ITA/312/2016HC Karnataka17 Jul 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 11Section 12ASection 260

…the revenue.” 14. Even though by a short order, the appeal filed against the said judgment of Madras High Court was dismissed by the Hon’ble Supreme Court on 17-12-1997, vide Nachimuthu Industrial Association v. Commissioner of Income-tax (1999) 235 ITR 190 (SC). Date of Judgment: 17.07.2018 in ITA Nos.312 & 313 of 2016 Commissioner of Income-tax & another vs. Ohio University Christ College 32/47 15. Thus, we are of the opinion tha…

Arch Pharmalabs Limited, Mumbai vs. Dy. CIT, Circle 32, Mumbai

In the result, the appeal is dismissed

ITA 3416/MUM/2014[2012-13]Status: DisposedITAT Mumbai31 Aug 2017AY 2012-13

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2012-13 Ms. Arch Pharma Labs Dcit-32 Ltd. Aayakarbhavan Vs. H Wing, 4Th Floor, Tex Ground Floor, M.K. Centre Off; Sakivihar Road, Road, Chandivli, Mumbai-400020. Andheri (E) Mumbai-400072. Pan No. Aaccm0306Q Appellant Respondent Assessee By : Shri Ajay R. Singh, Ar Revenue By : Shripurushottamkashyap, Dr Date Of Hearing : 06/06/2017 Date Of Pronouncement : 31/08/2017

For Appellant: Shri Ajay R. Singh, ARFor Respondent: ShriPurushottamKashyap, DR
Section 140A(1)Section 221Section 221(1)

…Ld. counsel of the assessee has relied on certain case laws. He has not filed the copy of the case laws relied on by him. However, we tried to locate those case laws and could find Nachimuthu Industrial Association vs. CIT [1980] 123 ITR 611 (Mad) affirmed in 235 ITR 190, CIT vs. Raunaq & Co. (P) Ltd. [1983] 140 ITR 407 (Del), CIT vs. Dadu Wala and Co. [1988] 170 ITR 491 (Raj) , CIT vs. Chembara Peak Estates Ltd. [1990] 183 ITR 471 (Ker) , CIT vs. Bhikaji Ramchandra [1983] ITR 478 (Bom). 6. Per contra the Ld. DR submits that (i) even after filing the return of income for the impugned assessment year on 29.09.2012…

Delhi Bureau of Text Books vs. Director of Income Tax(E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/807/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…(4A) of the Act. The Assessee had made accumulation in excess and “without specifying any purpose” and “was not wholly for the charitable purpose.” Reliance was placed on the decision of the Supreme Court in Nachimuthu Industrial Association v. CIT (1999) 235 ITR 190 (SC). ITA Nos. 807, 810, 811, & 812/2015 Page 9 of 19 Submissions on behalf of the Assessee 14. Ms. Prem Lata Bansal, learned Senior counsel for the Assessee, submitted that the ITAT erred in not appreciating the law governing the grant of exempt…

Delhi Bureau of Text Books vs. Director of Income Tax(E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/812/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…(4A) of the Act. The Assessee had made accumulation in excess and “without specifying any purpose” and “was not wholly for the charitable purpose.” Reliance was placed on the decision of the Supreme Court in Nachimuthu Industrial Association v. CIT (1999) 235 ITR 190 (SC). ITA Nos. 807, 810, 811, & 812/2015 Page 9 of 19 Submissions on behalf of the Assessee 14. Ms. Prem Lata Bansal, learned Senior counsel for the Assessee, submitted that the ITAT erred in not appreciating the law governing the grant of exempt…

Delhi Bureau of Text Books vs. Director of Income Tax (E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/811/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…(4A) of the Act. The Assessee had made accumulation in excess and “without specifying any purpose” and “was not wholly for the charitable purpose.” Reliance was placed on the decision of the Supreme Court in Nachimuthu Industrial Association v. CIT (1999) 235 ITR 190 (SC). ITA Nos. 807, 810, 811, & 812/2015 Page 9 of 19 Submissions on behalf of the Assessee 14. Ms. Prem Lata Bansal, learned Senior counsel for the Assessee, submitted that the ITAT erred in not appreciating the law governing the grant of exempt…

Delhi Bureau of Text Books vs. Director of Income Tax (E)

The appeals are allowed but, in the circumstances, with no orders as to costs

ITA/810/2015HC Delhi03 May 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR

Section 12ASection 2Section 260

…(4A) of the Act. The Assessee had made accumulation in excess and “without specifying any purpose” and “was not wholly for the charitable purpose.” Reliance was placed on the decision of the Supreme Court in Nachimuthu Industrial Association v. CIT (1999) 235 ITR 190 (SC). ITA Nos. 807, 810, 811, & 812/2015 Page 9 of 19 Submissions on behalf of the Assessee 14. Ms. Prem Lata Bansal, learned Senior counsel for the Assessee, submitted that the ITAT erred in not appreciating the law governing the grant of exempt…

M/S Credai Bengal, Kolkata vs. CIT, (Exemptions), Kolkata

In the result, assessee’s appeal allowed

ITA 381/KOL/2016[2011-2012]Status: DisposedITAT Kolkata30 Sept 2016AY 2011-2012

Bench: Shri Waseem Ahmed & Shri K.Narasimha Charyassessment Years:2011-12

Section 11Section 11(1)(a)Section 143(3)Section 2(15)Section 25Section 263

…143(3) of the Act. In view of above, we hold that the assessee has not spent any money in a country outside India although the fair was organized in a foreign country. Similarly we also find that the facts of the case Nachimuthu Industrial Association Vs. CIT 235 ITR 190 as relied by the ld. CIT are different from the instant case before us. The facts in the above case stand as under : “The following two questions were raised before the Tribunal : (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amount of Rs. 2,50,000 could not be said to have been applie…

M/S. Lord Jesus Education Society, Gurgaon vs. ACIT, Gurgaon

In the result, the Appeal filed by the Assessee stands allowed for statistical purposes

ITA 1648/DEL/2015[2010-11]Status: DisposedITAT Delhi02 Aug 2016AY 2010-11

Bench: Shri H.S. Sidhu

For Appellant: Sh. Hiren Mehta, CAFor Respondent: None
Section 12ASection 142(1)

…ated as application of income for charitable- purposes. The assessee vide his letter dated 12.2.2013 which was considered by the AO and by following the judgment of the Hon’ble Supreme Court of India in the case of Nachimuthu Industrial Association vs. CIT 235 ITR 190, “Provision for Gratuity” expenses amounting to Rs. 26,13,893/- was treated as not being application for charitable purposes and made the addition of Rs. 26,13,893/- and assessed the taxable income of the assessee trust at Rs. 25,93,214.5 vide order dated 12.2.2013 passed u/s. 143(3) of the I.T. Act, 1961. 3. Against the order of the Ld. AO,…

Asstt CIT (E) -I(1), Mumbai vs. K.J.Somaiya Trust, Mumbai

The appeal of the Revenue is dismissed

ITA 3774/MUM/2015[2008-09]Status: DisposedITAT Mumbai05 Jan 2016AY 2008-09

Bench: Shri Joginder Singh, Assessment Year: 2008-09

Section 11(6)

…आयकर अपील"य अ"धकरण,‘एक-सद"य’ "यायपीठ,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “SMC”, MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य, के सम" Before Shri Joginder Singh, Judicial Member, Assessment Year: 2008-09 Asst. CIT(Exemption)I-1, K.J. Somaiya Trust, Room No.506, 5th Floor, 4th Floor, Fazalbhoy बनाम/ Piramal Chambers, Lalbaug, Building, 45-47, M.G. Road, Vs. Mumbai-400012 Fort, Mumbai-400023 "नधा"रती / Assessee राज"व / Revenue P.A. No.AAATK0474C Assessment Year: 2008-09 K.J. Somaiya Trust, Asst. CIT(Exemption)II-1, 4th Floor, Fazalbhoy Room No.616, 6th Floor, बनाम/ Building, 45-47, M.G. Road, Piram…

Deputy Director of Income Tax (Exemption), Bangalore vs. Ohio University Christ College Academy for Management Education, Bangalore

In the result, Revenue’s appeals for both Assessment Years 2008-09 and 2009-10 are dismissed

ITA 1075/BANG/2014[2008-09]Status: DisposedITAT Bangalore09 Oct 2015AY 2008-09
For Appellant: Dr.P.K. Srihari, Addl. CIT (D.R.)For Respondent: Shri K.R. Vasudevan, Advocate
Section 11Section 12ASection 143(1)Section 143(3)

…tilisation or expending of the Income in real sense rather than on the basis of entries made in the books of account. 5) The CIT (A) has erred in not following the decision of the Hon'ble Supreme Court In the case of Nachimuttu Industrial Association vs. CIT (235 ITR 190) wherein it was held that entries made in the books of accounts cannot be construed as payment made out of the income of the year under consideration and, also, faded to notice the fact that the earlier decision of the Hon'ble Supreme Court in the case of H.E.H. Nizams Religious Endowment Trust v. CIT {1996} 59 ITR 582 (SCj was overruled in the c…