T.M.A. Pai Foundation v. State of Karnataka

8 SCC 481Reported decision2002#1404 most cited

What is T.M.A. Pai Foundation v. State of Karnataka authority for?

Educational institutions are not commercial activities, and collecting fees for betterment and growth does not automatically disqualify them from being considered educational. Fees collected for value-added courses, training, or hostel facilities can be eligible for exemption under Section 11 if applied towards the institution's infrastructure.

81

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

TMA Pai Foundation v. State of Karnataka · Section 2(15) · Section 11 · educational activity · commercial activity · generating funds · betterment and growth · value added course fees · training · hostel fees · infrastructure · exemption

Sections most often in play

Section 2(15)Section 11Section 11(4)Section 234ASection 234BSection 32Section 10(23C)Section 12

Issues it is cited on

section 10(22)section 11(4)section 35acsection 115bbcsection 35aanonymous donationsection 2(45)advancement of general public utilitysection 60section 11(4a)section 10(23c)(vi)rectification under section 154

Judgments citing T.M.A. Pai Foundation v. State of Karnataka

M/S.Agastya Gurukulam Public Charitable Trust, Chennai vs. CIT, Exemptions, Chennai

ITA 377/CHNY/2025[-]Status: DisposedITAT Chennai05 Feb 2026
For Appellant: Shri. R. Viswanathan, C.AFor Respondent: Ms. E. Pavuna Sundari, C.I.T
Section 12ASection 2(15)Section 80G(5)

…ort of his rejection: 1. Sole Trustee, LokaShikshana Trust V. CIT [1975] 101 ITR – 234. 2. In Re Trustees of Tribune [1939] 7 ITR 412 (PC). 3. New Noble Educational Society V. CCIT [2022] 143 taxmann.com 276. 4. TMA Pai Foundation V. State of Karnataka [2002] 8 SCC 481. 5. Raja Sir Annamalai Chettiar Foundation V. CCIT [2020] taxmann.com 128. 7. Before us, the Id.AR for assessee argued that the Id.CIT(E)'s rejection orders are without any specific finding for the rejection on the issue of genunineness of the assessee's activities as a trust. It was also argued that the assessee is registered for recognition with…

M/. Agastya Gurukulam Public Charitable Trust, Chennai vs. CIT, Exemptions, Chennai

The appeals of the assessee are allowed

ITA 376/CHNY/2025[-]Status: DisposedITAT Chennai05 Feb 2026

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. R. Viswanathan, C.AFor Respondent: Ms. E. Pavuna Sundari, C.I.T
Section 12ASection 2(15)Section 80G(5)

…rt of his rejection: 1. Sole Trustee, LokaShikshana Trust V. CIT [1975] 101 ITR – 234. 2. In Re Trustees of Tribune [1939] 7 ITR 412 (PC). 3. New Noble Educational Society V. CCIT [2022] 143 taxmann.com 276. 4. TMA Pai Foundation V. State of Karnataka [2002] 8 SCC 481. 5. Raja Sir Annamalai Chettiar Foundation V. CCIT [2020] taxmann.com 128. 7. Before us, the ld.AR for assessee argued that the ld.CIT(E)’s rejection orders are without any specific finding for the rejection on the issue of genuineness of the assessee’s activities as a trust. It was also argued that the assessee is registered for recognition with a…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5429/MUM/2025[2017-18]Status: DisposedITAT Mumbai11 Nov 2025AY 2017-18

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5428/MUM/2025[2016-17]Status: DisposedITAT Mumbai11 Nov 2025AY 2016-17

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5427/MUM/2025[2015-16]Status: DisposedITAT Mumbai11 Nov 2025AY 2015-16

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5426/MUM/2025[2014-15]Status: DisposedITAT Mumbai11 Nov 2025AY 2014-15

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5425/MUM/2025[2013-14]Status: DisposedITAT Mumbai11 Nov 2025AY 2013-14

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5424/MUM/2025[2012-13]Status: DisposedITAT Mumbai11 Nov 2025AY 2012-13

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5423/MUM/2025[2011-12]Status: DisposedITAT Mumbai11 Nov 2025AY 2011-12

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Gia India, Mumbai vs. A/DCIT (E) - 1(1), Mumbai

ITA 5422/MUM/2025[2010-11]Status: DisposedITAT Mumbai11 Nov 2025AY 2010-11

Bench: Shri Saktijit Dey & Ms Padmavathy S, Am

For Respondent: Shri. Swapnil Choudhary Sr. AR
Section 10Section 11Section 11(4)Section 2Section 2(15)Section 25Section 250

…ake it a non-educational activity so as to go out of the definition of 'education' contained in Sec. 2(15) of the Act. In this context, we may refer to the judgment of the Hon'ble Supreme Court in the case of T.M.A. Pai Foundation v. State of Karnataka [2002] 8 SCC 481, wherein the Hon'ble Supreme Court has also recognised the necessity for the educational institution to generate funds for its betterment and growth. In the case of American Hotel & Lodging Association Education Institute v. CBDT [2008] 301 ITR 86/170 Taxman 306 (SC), the Hon'ble Supreme Court was dealing with an entity engaged in providing world-r…

Bannariamman Educational Trust, Coimbatore vs. ACIT Central Circle 3(2), Chennai

ITA 3314/CHNY/2024[2021-22]Status: DisposedITAT Chennai14 Aug 2025AY 2021-22

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Vikram VijayaraghavanFor Respondent: Mr.Shiva Srinivasan, CIT/DR
Section 12ASection 132Section 133ASection 143(2)Section 153CSection 250

…f this Tribunal in case of Indus Educational & Charitable Trust vs. ITO (ITA No. 19/Ctk/2020). In the decided case, the Tribunal after taking cognizance of the decision of Hon’ble Supreme Court in the case of TMA Pai Foundation vs State of Karnataka 2002 (8 SCC 481) deleted the addition made by the AO on account of the extra / additional fees collected by the assessee beyond the prescribed limits towards value added course fees, training, hostel fees etc. It was noted that, these fees were collected in the course of rendering educational activity from the students and the same was applied towards the inf…

Bannariamman Educational Trust, Coimbatore vs. ACIT Central Circle 3(2), Chennai

ITA 3311/CHNY/2024[2018-19]Status: DisposedITAT Chennai14 Aug 2025AY 2018-19

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.3310 To 3314/Chny/2024 िनधारणवष/Assessment Years: 2017-18 To 2021-22 M/S.Bannari Amman- Educational Trust, 1212, Trichy Road, Coimbatore-641 018. V. The Acit, Central Circle-3(2), Chennai. [Pan: Aaatb 1235 C] (अपीलाथ/Appellant) (यथ/Respondent) आयकर अपील सं./Ita Nos.3353 & 3354 To 3358/Chny/2024 िनधारणवष/Assessment Years: 2015-16 & 2017-18 To 2021-22 & Cross-Objection No.42/Chny/2025 (In Ita No.3353/Chny/2024) िनधारणवष/Assessment Year: 2015-16 The Acit, Central Circle-3(2), Chennai. V. M/S.Bannari Amman- Educational Trust, 1212, Trichy Road, Coimbatore-641 018. [Pan: Aaatb 1235 C] (अपीलाथ/Appellant) (यथ/Respondent/Cross Objector) Assessee By : Mr.Vikram Vijayaraghavan, Advocate (Virtual)/Ld.Ar Department By : Mr.Shiva Srinivasan, Cit/Dr सुनवाईकतारीख/Date Of Hearing : 27.06.2025 घोषणाकतारीख /Date Of Pronouncement : 14.08.2025

For Appellant: Mr.Vikram VijayaraghavanFor Respondent: Mr.Shiva Srinivasan, CIT/DR
Section 12ASection 132Section 133ASection 143(2)Section 153CSection 250

…ch of this Tribunal in case of Indus Educational & Charitable Trust vs. ITO (ITA No. 19/Ctk/2020). In the decided case, the Tribunal after taking cognizance of the decision of Hon'ble Supreme Court in the case of TMA Pai Foundation vs State of Karnataka 2002 (8 SCC 481) deleted the addition made by the AO on account of the extra / additional fees collected by the assessee beyond the prescribed limits towards value added course fees, training, hostel fees etc. It was noted that, these fees were collected in the course of rendering educational activity from the students and the same was applied towards the infrastr…

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

…itions and requirements, 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. Sharawa…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…

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)

…capitation fee was nothing but price of selling education and such "teaching shops" were contrary to the Constitutional scheme and abhorrent to our Indian culture. Hon'ble Supreme Court's decisions in case of TMA Pai Foundation Vs. State of Karnataka (2002) (8 SCC 481), Islamic Academy of Education Vs. State of Karnataka (2003) (6 SCC 697) and P.A. Inamdar Vs. State of Maharashtra (2005) (6 SCC 537) also supports the fact that the education is not a commercial activity. Education would remain as a charity only in a case where education is imparted systematically for a fee prescribed by Government. A private aide…