“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)

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

In the result, Revenue’s appeal for A

ITA 336/NAG/2023[2018-19]Status: DisposedITAT Nagpur03 Apr 2025AY 2018-19

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

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

In the result, Revenue’s appeal for A

ITA 335/NAG/2023[2017-18]Status: DisposedITAT Nagpur03 Apr 2025AY 2017-18

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

Gohilwad Vankar Samaj Seva Trust Sihor, Bhavnagar vs. The CIT(Exemption), Ahmedabad

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 796/AHD/2023[NA]Status: DisposedITAT Ahmedabad03 Apr 2025

Bench: DR. BRR Kumar (Vice President), Shri T. R. Senthil Kumar (Judicial Member)

Section 11Section 12ASection 12A(1)(ac)Section 13Section 13(1)(b)

order passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Act since violation of provisions of Section 13(1)(b) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and therefore the Trust is not entitled for exemption under section ... final registration. The Ld. CIT(E) issued a show cause notice, looking into the objects of the Trust, whether provisions of Section 13(1)(b) of the Act is applicable to the Assessee Trust, since the objects are meant for particular community as follows: 2 Objects:- 1. To do various

DCIT, Circle-1(Exemption), Chandigarh vs. M/S Indo Global Education Foundation, Kharar

In the result, appeal of the Revenue is dismissed

ITA 26/CHANDI/2020[2013-14]Status: DisposedITAT Chandigarh01 Apr 2025AY 2013-14

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./Ita No. 26/Chd/2020 िनधा"रण वष" / Assessment Year : 2013-14 The Dcit, M/S Indo Global बनाम Circle-1(Exemptions), Education Foundation, Chandigarh Vill. Abhipur, Vs. Sub Tehsil Majra, Tehsil Kharar, Punjab "थायी लेखा सं./Pan No: Aaati2838L अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11Section 12ASection 13(1)(c)Section 13(3)

used for education. iv. That on the facts and circumstances of the case, the Ld. CIT(A) has erredin law in holding that section 13(1)(c) shall not be applicable when both IndoGlobal Education Foundation and Chaman Educational & Charitable Trust areclosely held trusts with common members, hence, the real ... trust to another public charitable trust is permissible in section 11 as application of income and said payment is not in violation of section 13(1)(c) because payment is not made for benefit of any person either directly or indirectly referred to in section 13

Shree Vishwakarma Sutradhar Sampati Trust, Bikaner vs. Income Tax Officer, Exemption, Bikaner

In the result, appeal of the assessee is partly allowed in above terms

ITA 305/JODH/2024[2017-2018]Status: DisposedITAT Jodhpur28 Mar 2025AY 2017-2018

Bench: Hearing On The Case.

For Appellant: Shri Amit Kothari (CA)For Respondent: Shri Karni Dan, Addl. CIT

Section 11Section 11(1)(a)Section 12ASection 143(2)Section 250

Assessing Officer mentioned in his order that trust is for the benefit of a particular community and caste, therefore there is violation of section 13(1)(b) of the Act. The Assessing Officer further mentioned that the said trust is not registered under any Act or Law. He further stated ... submitted that the assessee subsequently already registered u/s. 12A with effect from 22.03.2022 and thus it does not come under the provision of section 13(1)(c) and (d) of the Act and therefore, based on that set of facts the assessee trust shall be charged

Shree Cambay Swetamber Visha Shrimali Jain Samaj Sahayak Trust, Mumbai vs. Commmssioner of Incometax(Exemption), Mumbai

In the result appeals filed by the assessee stand dismissed

ITA 752/MUM/2025[2025-26]Status: DisposedITAT Mumbai28 Mar 2025AY 2025-26

Bench: Smt. Beena Pillai () & Shri Girish Agrawal ()

Section 11(1)Section 12ASection 80G

trust or institution are carried out in a manner that the provisions of section11 and 12 do not apply due to operation of section 13(1), or, the trust or institution has not complied with the requirement of any other law for the time being in force as is material ... have always proceeded on the footing that, section 11(1)(a) do not attract forfeiture over the entire income unlike the provisions of section 13(1). In other words, the Courts have held that, if a trust or institution is willing to pay taxes to the extent of its activities

Agra Obstetrical and Gynaecological Society, Agra vs. PCIT, Central, Pune

ITA 549/PUN/2023[2022-23]Status: DisposedITAT Pune26 Mar 2025AY 2022-23

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.518/Pun/2023 1. Poona Obstetrics & Gynaecological Society, 302/303, Dr. Neety Mandke Ima House, Tilak Road, Shukrawar Peth, Pune 411 002, Maharashtra Pan : Aaatp1435C Vs. Pr.Cit (Central), Pune Appellant Respondent आयकर अपील सं. / Ita No.522/Pun/2023 2. The Mumbai Obstetrics & Gynaecological Society, C-114, Ist Floor, D-Wing Entrance, Trade World, Kamala City, Senapati Bapat Marg, Low Parel (W), Mumbai-400 013 Maharashtra Pan : Aaatt4562C Vs. Pr.Cit (Central), Pune Appellant Respondent आयकर अपील सं. / Ita No.549/Pun/2023 3. Agra Obstetrical & Gynaecological Society, 84, M.G. Road, Agra 282 010, Uttar Pradesh Pan : Aabta6327K Vs. Pr.Cit (Central), Pune Appellant Respondent आयकर अपील सं. / Ita No.417/Pun/2023 4. Aids Society Of India, Ground Floor, Maharukh Mandsion, Alibhai Premji Marg, Grant Road (E), Mumbai 400 007 Maharashtra Pan : Aabta4129R Vs. Principal Commissioner Of Income-Tax (Central), Pune Appellant Respondent 2

Section 12A

Commissioner or the Commissioner may by an order in writing cancel the registration of such trust. Sub clause (ii) of Clause (c) of section 13(1) provides that in the case of a trust for charitable purposes, if any income thereof during the previous year is used or applied, directly ... laid down that, exemption u/s 11 ought to be denied only to the extent of violative portion. Similarly, Appellant has referred to section 13(1) and 115BBI, wherein, withdrawal of exemption only for violative part is provided for. This changing principle of the I-T law has been glossed over

The Mumbai Obstetric Gynaecological Society, Low Parel (W) vs. Principal Commissioner of Income Tax (Central), Pune

ITA 522/PUN/2023[-]Status: DisposedITAT Pune26 Mar 2025

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.518/Pun/2023 1. Poona Obstetrics & Gynaecological Society, 302/303, Dr. Neety Mandke Ima House, Tilak Road, Shukrawar Peth, Pune 411 002, Maharashtra Pan : Aaatp1435C Vs. Pr.Cit (Central), Pune Appellant Respondent आयकर अपील सं. / Ita No.522/Pun/2023 2. The Mumbai Obstetrics & Gynaecological Society, Vs. Pr.Cit (Central), Pune C-114, Ist Floor, D-Wing Entrance, Trade World, Kamala City, Senapati Bapat Marg, Low Parel (W), Mumbai-400 013 Maharashtra Pan : Aaatt4562C Appellant Respondent आयकर अपील सं. / Ita No.549/Pun/2023 3. Agra Obstetrical & Gynaecological Society, 84, M.G. Road, Agra 282 010, Uttar Pradesh Pan : Aabta6327K Appellant Vs. Pr.Cit (Central), Pune Respondent आयकर अपील सं. / Ita No.417/Pun/2023 4. Aids Society Of India, Ground Floor, Maharukh Mandsion, Alibhai Premji Marg, Grant Road (E), Mumbai 400 007 Maharashtra Pan : Aabta4129R Appellant Vs. Principal Commissioner Of Income-Tax (Central), Pune Respondent 2

Section 12A

Satyamev Jayate IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY

Poona Obstetrics and Gynaecological Society, Pune vs. Principal Commissioner of Income Tax-Central, Pune

ITA 518/PUN/2023[-]Status: DisposedITAT Pune26 Mar 2025

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.518/Pun/2023 1. Poona Obstetrics & Gynaecological Society, 302/303, Dr. Neety Mandke Ima House, Tilak Road, Shukrawar Peth, Pune 411 002, Maharashtra Pan : Aaatp1435C Vs. Pr.Cit (Central), Pune Appellant Respondent आयकर अपील सं. / Ita No.522/Pun/2023 2. The Mumbai Obstetrics & Gynaecological Society, Vs. Pr.Cit (Central), Pune C-114, Ist Floor, D-Wing Entrance, Trade World, Kamala City, Senapati Bapat Marg, Low Parel (W), Mumbai-400 013 Maharashtra Pan : Aaatt4562C Appellant Respondent आयकर अपील सं. / Ita No.549/Pun/2023 3. Agra Obstetrical & Gynaecological Society, 84, M.G. Road, Agra 282 010, Uttar Pradesh Pan : Aabta6327K Appellant Vs. Pr.Cit (Central), Pune Respondent आयकर अपील सं. / Ita No.417/Pun/2023 Vs. Principal Commissioner 4. Aids Society Of India, Ground Floor, Maharukh Mandsion, Alibhai Premji Marg, Grant Road (E), Mumbai 400 007 Maharashtra Pan : Aabta4129R Appellant Of Income-Tax (Central), Pune Respondent 2

Section 12A

Commissioner may by an order in writing cancel the registration of such trust or institution. Sub clause (ii) of Clause (c) of section 13(1) provides that in the case of a trust for charitable purposes, if any income thereof during the previous year is used or applied, directly

Aids Society of India, Mumbai vs. The Principal Commissioner of Income Tax (Central), Pune

ITA 417/PUN/2023[-]Status: DisposedITAT Pune26 Mar 2025

For Respondent: Shri Ajay Kumar Keshari

Section 12A

Hashambhai Nazerally Rangwala Kakkai Charitable Trust, Mumbai vs. Commissioner of Income Tax (Exemptions), Mumbai

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

ITA 6171/MUM/2024[2025-26]Status: DisposedITAT Mumbai25 Mar 2025AY 2025-26

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarassessment Year: 2025-26

For Appellant: Shri Sandeep D. Darji, Ld. A.RFor Respondent: Smt Neena Jeph, Ld. CIT D.R

Section 11(5)Section 12ASection 13(1)(b)

particular religious’ community (members of the Dawoodi Bohra community in the state of Gujarat and Maharashtra of India) which is in violation of section 13(1)(b) of the Act. The Ld. Commissioner further noticed that various investments made by the trust in various funds were in contravention of section ... process for amendment in trust deed before the charity commissioner. Thus the object as mentioned above, is in clear violation as per section 13(1)(b) of the Act and therefore the application filed by the Assessee for 12A registration is not maintainable, due to abovementioned violation and therefor

M/S. Sri. Srinivasa Educational & Charitable Trust, Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-2(3), Bangalore

In the result, the appeal of the assessee is allowed

ITA 835/BANG/2023[2021-22]Status: DisposedITAT Bangalore24 Mar 2025AY 2021-22

Bench: Shri Waseem Ahmed & Shri Soundararajan Kassessment Years : 2021-22

For Appellant: Shri Vijay Mehta, CA & Shri Mahesh KumarFor Respondent: Shri Jeetendra Kumar, CIT (DR)

Section 12ASection 132Section 143(3)

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

Shree Baua Bhavik Mandal Nani Tumbdi, Kutch vs. CIT(Exemption), Ahmedabad

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

ITA 367/RJT/2023[NA]Status: DisposedITAT Rajkot21 Mar 2025

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकरअपीलसं./Ita No.367/Rjt/2023 Assessment Year: (Na) (Hybridhearing) Shree Baua Bhavik Mandal Vs. Cit(Exemption), Nani Tumbdi- Charitable Trust, Ahmedabad.

For Appellant: Shri Kalpesh Doshi, Ld. A.RFor Respondent: Shri Sanjay Punglia, Ld. CIT. DR

Section 12ASection 12A(1)(ac)Section 13(1)Section 13(1)(b)

Bauva Nukh. Therefore there is specified violation as defined in the Explanation to section 12AB(4).For that our explanation are as under: Section 13(1)(b) prohibits exemption for those trusts and institutions formed for benefit of any particular religious, community or caste.As per section 13(1)(b)(1 ... such trust or institution has been created or established after the commencement of this Act,Proviso to section 13(1) provides that in case of a trust or institution created or established before the commencement of this Act the provisions of sub-clause(ii) shall not apply

Laxminarayan Mandir Trust, Mumbai vs. Assistant Commissioner of Income Tax Exem Circle 1, Mumbai

In the result, both appeals by the assessee are allowed

ITA 716/MUM/2025[2011-12]Status: DisposedITAT Mumbai18 Mar 2025AY 2011-12

Bench: Shri Narendra Kumar Billaiya, Am & Shri Sandeep Singh Karhail, Jm

Section 11Section 13(1)(c)Section 13(2)(a)Section 13(3)Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

assessee are directors having substantial shares (conjointly more than 20%), the assessee has violated the provisions of section 13(3) read with section 13(1)(c) and section 13(2)(a) of the Act. Accordingly, the AO held that the assessee is not eligible for exemption under section

Shailendra Garg, Sriganganagar vs. Deputy Commissioner of Income Tax Circle 6, Jaipur

In the result, the appeals of the assesseeare allowed for statistical purposes as indicated hereinabove

ITA 8/JPR/2025[2011-12]Status: DisposedITAT Jaipur07 Mar 2025AY 2011-12