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“Section 13(1)”

Section References (mined)Section 13Section 13(1)715 judgments

The decision most relied on for Section 13(1) is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 judgments on BharatTax.

Leading authorities on Section 13(1)

Engineering Analysis Centre of Excellence (P) Ltd. v. CIT
432 ITR 471 · 2021 · Supreme Court
914
citing judgments

Payments for the supply or use of computer software, where there is no transfer of copyright but only a right to use the copyrighted product, are generally considered business profits and not 'royalty' or 'fees for technical services' under the Income Tax Act, 1961 or relevant DTAAs. This principle also applies to transponder fees, which are not taxable as royalty.

Sony Ericsson Mobile Communications India Pvt. Ltd. v. CIT
374 ITR 118 · 2015 · High Court
499
citing judgments

The existence of an international transaction for Advertising and Marketing Promotion (AMP) expenditure requires the revenue to discharge the burden of proof. An explanation inserted under Section 92B does not automatically make AMP expenditure an international transaction.

CIT v. Samsung Electronics Ltd.
345 ITR 494 · 2012 · High Court
461
citing judgments

Payments by Indian residents to non-resident foreign software suppliers for software are considered royalty, constituting income deemed to accrue in India under section 9(1)(v), thereby requiring tax deduction at source under section 195.

CIT v. Institute of Banking Personnel Selection
264 ITR 110 · 2003 · High Court
398
citing judgments

Depreciation is allowable on assets for which the cost has been fully allowed as an application of income under Section 11 in previous years, when computing the income of a charitable trust. Charitable trusts are also entitled to carry forward their deficit.

Ishikawajima Harima Heavy Industries Ltd. v. DIT
288 ITR 408 · 2007 · Supreme Court
394
citing judgments

Income from offshore supply of goods and services is not taxable in India if the entire transaction, including transfer of ownership and payments, occurs outside India.

CIT v. De Beers India Minerals (P.) Ltd.
346 ITR 467 · 2012 · High Court
371
citing judgments

For fees for technical or consultancy services to 'make available' technical knowledge or know-how under a DTAA, the service must transmit such knowledge, allowing the recipient to derive an enduring benefit and utilize it independently in the future.

Asia Satellite Telecommunications Co. Ltd. v. DIT
332 ITR 340 · 2011 · High Court
359
citing judgments

Payments for the use of equipment, such as satellite transponders, do not constitute 'royalty' under Section 9(1)(vi) of the Income-tax Act, 1961, or under applicable tax treaties, especially when there is no transfer of the right to use a process or underlying technology.

DIT v. New Skies Satellite BV
382 ITR 114 · 2016 · High Court
325
citing judgments

An amendment to the Income Tax Act, such as the Finance Act, 2012 amendment to Section 9(1)(vi) defining royalty, does not automatically override or alter the definition of 'royalty' as provided in a Double Taxation Avoidance Agreement (DTAA) unless the DTAA itself is bilaterally amended. The definition of royalty in a DTAA remains unaffected by unilateral changes to domestic law.

Judgments citing Section 13(1)

Mohan Lal Krishan Avtar Rawat Memorial Charitable Trust (Bobas Wale), Jaipur vs. CIT Exemption, Jaipur

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 306/JPR/2025[NA]Status: DisposedITAT Jaipur05 May 2025

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri R.S. Poonia, CAFor Respondent: Shri Rajesh Ojha, CIT-DR
Section 10Section 12ASection 13(1)(c)Section 80GSection 80G(5)(iii)

view of the above, it is clear that assessee has made only book entry for the entire transactions. Accordingly, violated provisions of section 13(1)(c) of the I.T. Act, 1961, and also specific violation of clause (a) below Explanation 12AB(4). Further act of money siphoning by trustees also

Dy. Commissioner of Income Tax (Exmp), Ghaziabad vs. Pardada Pardadi Educational Society, Bulandshahr

In the result, appeal of Revenue in ITA No

ITA 5149/DEL/2024[2018-19]Status: DisposedITAT Delhi05 May 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Manuj Sabharwal, AdvFor Respondent: Ms. Nimisha Singh, CIT- DR
Section 11Section 12ASection 13(1)(c)Section 13(2)(c)Section 13(3)Section 13(3)(cc)

erred in law and facts in deleting addition of Rs. 5,95,71,306/- without appreciating the provisions of 1 section 13(1)(c), which clearly states that exemption u/s 11 and 12 cannot not be allowed to the assessee if there is any violation under the said provisions ... section 13(1)(c). 2. The Ld. CIT(A) has erred in law and facts on relying on the decision of Hon'ble Gujrat High Court in the case of CIT vs. Bholaram Education Society reported in 101 taxmann.com 508, wherein the Hon'ble High Court have held that rent

Watershed Organisation Trust, Ahmednagar vs. ACIT Exemption Circle, Aurangabad

In the result, the appeal of the assessee is allowed for statistical

ITA 1976/PUN/2024[2015-16]Status: DisposedITAT Pune02 May 2025AY 2015-16
For Appellant: Shri P.D. KudvaFor Respondent: Shri Mallikarjun Utture
Section 10Section 11Section 11(2)Section 11(5)Section 12ASection 143(2)Section 143(3)

total income of the assessee at Rs.9,06,06,563/- as against the Nil income returned by the assessee by: i. invoking section 13(1)(d) of the Act and adding to declared income hypothetical interest of Rs.20,30,990/- calculated @ 8.5% p.a. of advances amounting to Rs.2

Shri Mukund Bhavan Trust, Pune vs. CIT(E), Pune

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

ITA 1552/PUN/2024[-]Status: DisposedITAT Pune29 Apr 2025

Bench: Shri R. K. Panda & Ms. Astha Chandrashri Mukund Bhavan Trust Cit (Exemption), Pune 1105, Raviwar Peth, Mukund Vs. Bhavan, Pune – 411002 Pan: Aaats5170R (Appellant) (Respondent) Assessee By : Shri V.L. Jain Department By : Shri Mallikarjun Utture, Cit Date Of Hearing : 05-02-2025 Date Of Pronouncement : 29-04-2025 O R D E R

For Appellant: Shri V.L. JainFor Respondent: Shri Mallikarjun Utture, CIT
Section 12ASection 13(1)(a)

private trust established for the benefit of a particular caste / community. Therefore, he was of the opinion that prima facie the provisions of section 13(1)(a) and 13(1)(b) of the Act applies to the case of the assessee. 4. He, therefore, issued a show cause notice asking ... record that substantial amounts have expended for the above purposes. 5 4 In view of the above, it appears that the provisions of section 13(1)(a) and 13(1)(b) of the Income-tax Act, 1961 applies to your case. For ready reference, said provisions are reproduced hereunder “13

M/S Shishukunj Educational Society, the Shishukunj International School, Gram Jhalaria vs. Principal Commissioner of Income Tax (Central), Director General of Income Tax. Aaykar Bhawan

ITA 806/IND/2024[2024-25]Status: DisposedITAT Indore28 Apr 2025AY 2024-25

Bench: Shri B.M. Biyani

Section 10Section 127(2)Section 132Section 143(3)Section 147

when trust or institution complied wholly or in part of the income of such trust or institution in violation of section 13(1) of the Act or if they complied with any other law, for the time being in force by the trust or institution as are material ... cancellation of registration in case of any violation under Section 13. The amended Section 12AB(4) does not consider a violation of Section 13(1)(c) and Section 13(1)(d) as specified violations. Consequently, the registration cannot be cancelled on the ground that the assessee has violated Section 13

Shyam Gupta, Delhi vs. ITO, Ward- 35(2), New Delhi

In the result, the appeal for the assessment year 2010-11 stand allowed for statistical purposes in the aforesaid manner

ITA 2997/DEL/2018[2013-14]Status: DisposedITAT Delhi28 Apr 2025AY 2013-14

Bench: Shri Shamim Yahya & Shri Sudhir Kumar

For Appellant: Sh. R.K. Sharma, AdvFor Respondent: Sh. Dheeraj Kumar Jain, Sr. DR
Section 13(1)(b)Section 143(3)Section 147

appreciate that the AO has passed the order in blatant ignorance and disregard of the statutory provisions; the AO misapplied the provision of section 13(1)(b) which cannot be invoked even if the assessee is engaged in religious activity as section 13(1)(b) applies only to charitable activities ... income to the extent of Rs. 1.49 crore towards capital expenditure which is bad in law in the light of non applicability of section 13(1)(b) and validity of 12AA registration merely on the basis of allegation. The CIT Appeal further erred on facts

Naughtys Pet Sanctuary, Kerala vs. CIT( Exemption), Kochi

In the result, appeal filed by the assessee is allowed

ITA 543/COCH/2024[2024-25]Status: DisposedITAT Cochin24 Apr 2025AY 2024-25

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI KESHAV DUBEY (Judicial Member)

For Appellant: Shri Sunil Jain, A.RFor Respondent: Smt. Leena Lal, Sr. D.R
Section 11Section 12Section 12ASection 13Section 13(3)

pertaining to remuneration or fees paid to Trustees orBoard Members is very enabling and allows reasonableremuneration to Trustees or Board Members under section 13(1)(c)read with section 13(2)(c) of the Act.The Supreme Court in CIT Vs Kamala Town Trust [2005] 279 ITR89 (All) held that section ... Forfeiture under section13(1)(c) of the Act can be done only if any benefit is provided to the Board membersor interested functionaries. Section 13(1)(c) does not Naughtys Pet Sanctuary, Thiruvananthapuram Page 9 of 10 prohibit payment ofremuneration; it gets attracted if any benefit is provided to interestedpersons

M/S Truba Education Society, Bhopal vs. Principal Commissioner of Income Tax (Central) Bhopal, Bhopal

ITA 801/IND/2024[2023-24]Status: DisposedITAT Indore24 Apr 2025AY 2023-24

Bench: Shri B.M. Biyani & Shri Udayan Das Gupta

Section 11Section 127(2)Section 12ASection 12A(1)(ac)Section 132Section 133ASection 143(3)Section 147Section 2(15)

when trust or institution complied wholly or in part of the income of such trust or institution in violation of section 13(1) of the Act or if they complied with any other law, for the time being in force by the trust or institution as are material ... cancellation of registration in case of any violation under Section 13. The amended Section 12AB(4) does not consider a violation of Section 13(1)(c) and Section 13(1)(d) as specified violations. Consequently, the registration cannot be cancelled on the ground that the assessee has violated Section 13

Dera Sacha Sauda, Sirsa vs. PCIT(Central), Gurgaon

ITA 21/CHANDI/2024[NA]Status: DisposedITAT Chandigarh24 Apr 2025

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 21/Chd/2024 (Under Section 12Aa) M/S Dera Sacha Sauda, Shah Satnam Ji Dham, Shah Satnam Ji Marg, Sirsa. Vs The Pcit (Central), Gurgaon. स्थायी लेखा सं./Pan No: Aaatd8359H अपीलार्थी/Appellant प्रत्यर्थी/Respondent Assessee By : Shri Rakesh Gupta, Advocate & Shri Saksham Aggarwal, C.A. Revenue By : Shri Rohit Sharma, Cit,Dr Date Of Hearing 05.03.2025 Date Of Pronouncement : 25.04.2025 Per Rajpal Yadav, Vp Hybrid Hearing Order The Assessee Is In Appeal Against The Order Of Ld. Pr. Commissioner Of Income Tax, Central, Gurgaon (In Short 'The Pcit') Dated 27.12.2023 Vide Which Registration Granted Under Section 12Aa Of The Act Dated 13.12.2004 Has Been Cancelled W.E.F. 01.04.2016 By Invoking The Provisions Of Section 12Ab(4) Of The Act.

For Appellant: Shri Rakesh Gupta, Advocate andFor Respondent: Shri Rohit Sharma, CIT,DR
Section 11Section 127Section 12ASection 142Section 143(2)Section 143(3)

terms of clause (c) of Explanation to section 12AB(4) of the Act. b. That assessee has allegedly contravened the provisions of section 13(1)(c) and thus, allegedly committed specified violation in terms of clause (a) of Explanation to section 12AB(4) of the Act. C. That assessee

Mitcon Forum for Social Development, Pune vs. CIT Exemption, Pune

In the result, appeal of the assessee is allowed for statistical purpose

ITA 613/PUN/2025[2024-25]Status: DisposedITAT Pune24 Apr 2025AY 2024-25

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.613/Pun/2025 िनधा"रण वष" / Assessment Year: 2024-25 Mitcon Forum For Social V The Commissioner Of Development, S Income Tax(Exemption), Kebera Chambers, 1St Floor, Pune. Shivajinagar, Pune – 411005. Maharashtra Pan: Aalcm9558M Appellant/ Assessee Respondent / Revenue Assessee By Shri Sharad A Vaze – Ar Revenue By Shri Ramnath P Murkude – Cit-Dr Date Of Hearing 22/04/2025 Date Of Pronouncement 24/04/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Against The Order Of Ld.Commissioner Of Income Tax-Exemption, Pune Passed Under Section 80G(5) Of The Income Tax Act, 1961; Dated 19.02.2025. 2. The Assessee Has Raised The Following Ground Of Appeal : “1. On The Basis Of Facts & In The Circumstances Of The Case & As Per Law, The Commissioner Of Income Tax,(Exemptions) Pune, Is Not

Section 10Section 11Section 12ASection 13(1)Section 80GSection 80G(5)Section 80G(5)(iii)

आयकर अपीलीय अिधकरण ”ए” "ायपीठ पुणेम"। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” :: PUNE BEFORE DR.DIPAK P. RIPOTE

Mmtc Ltd vs. DCIT, Circle-5(1)

In the result, the assessees’ appeals are allowed

ITA 216/DEL/2005[1999-2000]Status: DisposedITAT Delhi23 Apr 2025AY 1999-2000

Bench: SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

Section 120Section 127Section 12ASection 143Section 3

specified violations. Consequently, the registration cannot be cancelled on the ground that the assessee has violated Section 13(l)(c) or Section 13(1)(d). 8.1.10 The Finance Act 2023 has inserted clause (g) in Explanation to Section 12AB(4) to provide that giving incomplete, false, or inaccurate information

Shriya Devi Mata Mandir Prajapat Samaj Seva Sansthan, Rajsamand vs. CIT(Exemption), Jaipur

In the result both the appeals of the assessee are allowed for statistical

ITA 349/JODH/2024[2024-25]Status: DisposedITAT Jodhpur21 Apr 2025AY 2024-25

Bench: Dr. Mitha Lal Meena, Hon'Ble & Shri Udayan Das Gupta, Hon'Ble

Section 12ASection 2Section 80GSection 80G(5)

Prajapat Samaj who happens to be creator of trust and beneficiaries is society at large. Furthermore, it has been a settled law that section 13(1)(b) is relevant at the stage of assessment and not during registration process. However, whether the activities of the appellant society are charitable

Shriya Devi Mata Mandir Prajapat Samaj Seva Sansthan, Rajsamand vs. CIT(Exemption), Jaipur

In the result both the appeals of the assessee are allowed for statistical

ITA 348/JODH/2024[2024-25]Status: DisposedITAT Jodhpur21 Apr 2025AY 2024-25

Bench: Dr. Mitha Lal Meena, Hon'Ble & Shri Udayan Das Gupta, Hon'Ble

Section 12ASection 2Section 80GSection 80G(5)

clarified under Act 1959. It is alternatively submitted that even if formation of the trust is considered charitable and religious purposes. provision of section 13 (1) (b) shall not be applicable because: Clause 3 of the object clause if assumed religious for benefit of Prajapat Samaj by stretching imagination, section ... objects clause is expressly charitable for the entire community. It became trust with dual objectives Whereas section 13 (1) (b) applicable for the charitable trust onl and not religious or charitable cun religious trust. Case law placed reliance by L.d. CIT (Exemption) does have application in the present appeal

Sai Shiva Educational Trust, Mumbai vs. Income Tax Officer (Exemp) - 2(3), Mumbai

In the result appeal of the assessee are allowed subject to the directions given elsewhere in respect of Ritika Hotels Pvt

ITA 4082/MUM/2023[2015-16]Status: DisposedITAT Mumbai21 Apr 2025AY 2015-16

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Ketan L. Vajani, C.AFor Respondent: Shri Vivek Perampurna, CIT, D/R
Section 11Section 11(5)Section 12ASection 13Section 68

Assessing Officer, it could be observed that no evidence has been brought on record against the appellant to prove that the provisions of Section 13(1)(c)(ii) could be applied to the appellant's case. Appellant had clearly established that the advances made to the trustee Shri. Arun Kumar ... view to acquire capital asset for the purpose of the object - educational building - of the trust. The AO has specifically referred to section 13(1)(d) which reads as under – " (d) If the services of the trust or institution are made available to any person referred to in sub-section

Dwarika Greens Foundation, Rajkot vs. Commissioner of Income Tax (Exemption), Ahmedabad

In the result, the appeal filed by the Assessee is devoid of merits and the same is hereby dismissed

ITA 1812/AHD/2024[2025-26]Status: DisposedITAT Ahmedabad17 Apr 2025AY 2025-26

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

Section 12A

Explanation to Section 12AB(4) of the Act. I.T.A No. 1812/Ahd/2024 Page No 5 Dwarika Greens Foundation. vs. CIT(E) 5.1. Further section 13[1][b] of the Act exclude the benefit of section 11 and 12 to a charitable institution created or established after commencement of the Act, income ... Supreme Court in the case of CIT vs Dawoodi Bohara Jamat reported in 43 taxmann.com 243, held that the provision of section 13(1)(b) of the Act is applicable even to a composite trust/ institution having both religious and charitable objects, by observing as follows: "… 45. From the phraseology

Indo Pacific Finlease Ltd, Chandigarh vs. PCIT- Chandigarh 1, Chandigarh

In the result, both the appeals are filed by the

ITA 449/CHANDI/2024[2015-16]Status: DisposedITAT Chandigarh16 Apr 2025AY 2015-16

Bench: Shrilaliet Kumar & Shri Krinwant Sahayआयकर अपील सं . / I.T.A. Nos.448 & 449/Chd/2024 निर्धारणवर्ष / Assessment Years: 2014-15 & 2015-16

For Appellant: Sh. Ashok Goel, C.AFor Respondent: Sh.Rohit Sharma, CIT-D.R
Section 147Section 148Section 203(1)Section 263

copy thereof to the person therein named by modes provided in section 282 which includes transmitting in the form of electronic record. Section 13(1) of the Act, 2000 provides that unless otherwise agreed, the dispatch of an electronic record occurs when it enters into computer resources outside the control

Indo Pacific Finlease Ltd, Chandigarh vs. PCIT Chandigarh 1, Chandigarh

In the result, both the appeals are filed by the

ITA 448/CHANDI/2024[2014-15]Status: DisposedITAT Chandigarh16 Apr 2025AY 2014-15

Bench: Shrilaliet Kumar & Shri Krinwant Sahayआयकर अपील सं . / I.T.A. Nos.448 & 449/Chd/2024 निर्धारणवर्ष / Assessment Years: 2014-15 & 2015-16 Vs Pcitchandigarh 1, Chandigarh Indo Pacific Finlease Ltd., Sco-98-99, Sector 34 Sub City Centre, Chandigarh 160002 स्थायीलेखासं./Panno. Aaaci2176E अपीलार्थी/Appellant प्रत्यर्थी/Respondent Assessee By : Sh. Ashok Goel, C.A. Revenue By : Sh.Rohit Sharma, Cit-D.R. Date Of Hearing :19.03.2025 Date Of Pronouncement ;16/04/2025 Physical Hearing Order Per Laliet Kumar, J.M.: Both The Appeals Are Being Filed By The Assessee, Feeling Aggrieved By The Order Passed By The Ld. Pr. Commissioner Of Income Tax, Chandigarh-1 Dated 28.03.2024& 23.03.2024 U/S 263 For The Assessment Years: 2014-15& 2015-16. 2. The Assessee Has Raised The Common Grounds Of Appeal In Ita Nos.448 & 449/Chd/2024 As Under:

For Appellant: Sh. Ashok Goel, C.AFor Respondent: Sh.Rohit Sharma, CIT-D.R
Section 147Section 148Section 203(1)Section 263

copy thereof to the person therein named by modes provided in section 282 which includes transmitting in the form of electronic record. Section 13(1) of the Act, 2000 provides that unless otherwise agreed, the dispatch of an electronic record occurs when it enters into computer resources outside the control

Shri Vaishnav Sadhu (Bava Vairagi) Gnati Trust Mahuva, Bhavnagar vs. The CIT (Exemption), Ahmedabad

In the result, the appeal filed by the Assessee is hereby dismissed

ITA 806/AHD/2023[NA]Status: DisposedITAT Ahmedabad16 Apr 2025

Bench: DR. BRR KUMAR (Vice President), Shri T.R. SENTHIL KUMAR (Judicial Member)

Section 11Section 12ASection 12A(1)(ac)

granted to the applicant in this regard also. 8. Provision of sec 13(1)(b) of the Act is applicable to the applicant/assessee. Section 13(1)(b) of the Act stipulates that provisions of sec 11 and 12 would not apply in the case of a trust for charitable purposes ... applicable even to a composite trust/institution and held as under. "45. From the phraseology in clause (b) of section 13(1), it could be inferred that the Legislature intended to include only the trusts established for charitable purposes. That however does not mean that if a trust is a composite

Transunion International Inc., Mumbai vs. Deputy Comm. of Income Tax (International Taxation)-4(1)(2), Mumbai

Appeal of the assessee is allowed

ITA 2698/MUM/2022[2017-18]Status: DisposedITAT Mumbai11 Apr 2025AY 2017-18

Bench: Shri Pawan Singh, Jm & Ms Padmavathy S, Am

For Appellant: Shri J.D. Mistry, Sr. Adv. a/w
Section 142(1)Section 143(3)Section 144CSection 47

entered the portal, the recipient i.e, the assessing officer comes to know about it. 25. To elaborate, it is profitable to refer to Section 13(1) of the I.T.Act. This Sub- Section deals with 'despatch of electronic record' and envisages that 'despatch' of an electronic record is when it enters

Dy. Commissioner of Income Tax- Central-Circle-2 (1), Nagpur vs. Jaymahakali Shikshan Sanstha, Wardha

In the result, Revenue’s appeal for A

ITA 337/NAG/2023[2019-20]Status: DisposedITAT Nagpur03 Apr 2025AY 2019-20

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mahavir AtalFor Respondent: Shri Sandipkumar Salunke
Section 11Section 12ASection 13(1)(c)Section 13(3)Section 132Section 133ASection 143(3)Section 164(2)Section 69A

disallow exemption of section 11 of IT. Act merely on the addition of Rs.1,80,000/-received on rent, when the provisions of section 13(1)(c)(ii) read with section 13(3). states that if any part of income or any property of the trust is applied directly ... hand, the ground no.2, raised by the Revenue relates to the disallowance of exemption should have been made in light of provisions of section 13(1)(c)(ii) read with section 13(3) of the Act. The relevant provisions of section 13 of the Act are reproduced below. Section 13