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“Section 164(3)”

Section References (mined)Section 164Section 164(3)14 judgments

The decision most relied on for Section 164(3) is CIT v. K. Srinivasan (83 ITR 346), cited in 129 judgments on BharatTax.

Leading authorities on Section 164(3)

CIT v. K. Srinivasan
83 ITR 346 · 1972 · Supreme Court
129
citing judgments

The term 'tax' includes surcharge and cess. Surcharge and additional surcharge are considered components of income tax, which can be levied as a basic charge, surcharge, special surcharge, and additional surcharge.

CIT v. Fr. Mullers Charitable Institutions
363 ITR 230 · 2014 · High Court
117
citing judgments

For a charitable trust, a violation of Section 13(1)(d) does not lead to the denial of exemption under Section 11 on its total income. Instead, only income derived from investments or deposits made in violation of Section 11(5) or income diverted under Section 13(1)(c) or 13(1)(d) is taxable.

1. Father Mullers Charitable Institutions 363 IT 230 (Kar.) 2. DIT(E) v. Sheth Mafatlal Gagalbhai Foundation Trust
249 ITR 533 · 2001 · High Court
108
citing judgments

Income of a trust that is taxable at the maximum marginal rate should be taxed accordingly, while other income is eligible for exemption under Section 11 of the Income-tax Act.

DIT v. Bharat Diamond Bourse
259 ITR 280 · 2003 · Supreme Court
86
citing judgments

Violation of investment mandates under Section 13(1)(d) of the Income Tax Act, 1961, for a charitable trust results in the complete denial of exemption under Section 11 of the Act.

Marck Biosciences Ltd. v. ITO
164 ITD 205 · 2017 · ITAT
65
citing judgments

Payments for strategic counselling and advisory services are not royalty if they do not involve imparting information concerning industrial, commercial, or scientific experience, but rather are for business promotion, marketing, publicity, or financial advisory services.

CIT v. Fr, Mullers Charitable Institutions
51 Taxmann.com 378 · 2014 · Supreme Court
39
citing judgments

Income earned from investments or deposits made in violation of Section 13(1)(d) of the Income Tax Act is taxable, but only to the extent of the income so earned, not the entire corpus. Circular No. 387, dated 06.07.1994, supports this interpretation and binds the revenue authorities.

CIT v. Working Women’s Forum
365 ITR 353 · 2014 · High Court
34
citing judgments

When an exemption is denied under Section 13(1)(c) or (d), the denial of exemption applies only to the portion of income that violates these provisions, not the entire income.

ITA Nos.162, 164, 165, 167 & 168 of 2002 Page 24 of 51 in CIT v. SS Ahluwalia
138 ITR 391 · 1982 · High Court
34
citing judgments

An appellate tribunal ought to remand a matter rather than set aside assessments entirely when jurisdiction is in question.

Judgments citing Section 164(3)

Deloitte Employees Welfare Trust, Mumbai vs. Income Tax Officer - Ward 22(1)(6), Mumbai

ITA 6691/MUM/2025[2022-23]Status: DisposedITAT Mumbai05 Jan 2026AY 2022-23

Bench: Shri Amit Shukla, Jm & Shri Arun Khodpia, Am

For Appellant: Shri Ketan Ved a/w Shri NirajFor Respondent: Assessee by
Section 143(1)Section 164Section 164(1)Section 164(1)(iv)Section 167B

section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B. 5 Deloitte Employees Welfare Trust Accordingly, tax will be payable in such cases

Haryana Saraswati Heritage Development Board, Panchkula, Haryana vs. DCIT/ACIT(E)(Circle-2) Chandigarh, Chandigarh

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

ITA 962/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh28 Nov 2025AY 2017-18
Section 11Section 12ASection 142(1)Section 143(2)Section 164(3)Section 270A

also charged under sections 234B, 234C, 234D, and 244A, and tax was directed to be computed at the maximum marginal rate, as per section 164(3) of the Act. 4. Against the order of the AO the assessee went in appeal before the Ld. CIT(A) examined all the grounds

Mall of Jaipur Owners Welfare Association, Jaipur vs. DCIT, Circle-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 333/JPR/2025[2024-25]Status: DisposedITAT Jaipur11 Sept 2025AY 2024-25

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

For Appellant: Shri Rohan Mittal, AdvFor Respondent: Shri Gautam Singh Choudhary, JCIT a
Section 139(1)Section 143(1)Section 250

Balachandran, counsel for the assessee. Sn Menon contended that the definition of 'miaximiumi marginal rate' contained in Explanation 2 to section 164(3) is free from doubt The counsel for the assessee contended that the interpretation placed by the Tribunal based on another decision of the Tribunal is correct ... contenbon that 'maximum marginal rate is not the maximum rate as rightly held by the Tribunal. 3. Explanation2 to section 164(3) which is the subject-matter of these references is as follows: "Explanation 2.-In this section, 'maximum marginal rate means the rate of income tax (including surcharge

Assistant Commissioner of Income Tax, Exemptions, Circle-2, Chandigarh, Cr Building vs. Palampur Rotary Eye Foundation, Maranda, Palampur, Himachal Hp

ITA 390/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh30 Apr 2025AY 2017-18

Bench: Shri Rajpal Yadav & Shri Krinwant Sahay

For Appellant: Shri Tej Mohan Singh, AdvocateFor Respondent: Smt. Kusum Bansal, CIT DR
Section 11Section 12ASection 143(2)Section 164(3)Section 2Section 2(15)Section 270A

Charge interest as per provisions of Income Tax Act, 1961.Issue requisite documents along with this order. As per provisions of section 164(3) of the Income Tax Act, 1961, the tax is to be charged at maximum marginal rate. Penalty proceedings u/s 270A of the Act are initiated separately

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exemp), Ahmedabad

In the result, the appeal of the assessee is treated as allowed

ITA 3/AHD/2025[2023-24]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2023-24

Bench: Shri Sanjay Garg (Judicial Member), Ms. Annapurna Gupta (Accountant Member)

For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B Accordingly, tax will be payable in such cases at the rate ordinarily applicable

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exemp), Ahmedabad

In the result, the appeal of the assessee is treated as

ITA 2/AHD/2025[2022-23]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2022-23
For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B Accordingly, tax will be payable in such cases at the rate ordinarily applicable

Shakuntala Balvantrai Trust, Ahmedabad vs. The ITO, Ward-1 (Exmp), Ahmedabad

In the result, the appeal of the assessee is treated as allowed

ITA 1/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2021-22

Bench: Shri Sanjay Garg (Judicial Member), Ms. Annapurna Gupta (Accountant Member)

For Appellant: Shri S.N. Divetia, A.R. &For Respondent: Shri Ashok Kumar Suthar, Sr. D.R
Section 143(1)Section 164Section 164(1)Section 167BSection 250

section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B Accordingly, tax will be payable in such cases at the rate ordinarily applicable

Nathiben Kalidas Patel Family Trust, Ahmedabad vs. The ITO, Ward-1(3)(1), Ahmedabad

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

ITA 190/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad25 Apr 2025AY 2021-22

Bench: Smt. Annapurna Guptaआयकर अपील सं./I.T.A. No. 190/Ahd/2025 ("नधा"रण वष" / Assessment Year : 2021-22) बनाम/ Nathiben Kalidas Patel The Ito Ward 1(3)(1), Ahmedabad Family Trust Vs. 18, Mehsana Society, Nava Wadaj, Ahmedabad, Gujarat "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaatn2569D (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri S. N. Divatia & Shri Samir Vora, Ars. ""यथ" क" ओर से/Respondent By : Shri Nitin Kulkarni, Sr. Dr Date Of Hearing 17/04/2025 25/04/2025 Date Of Pronouncement

For Appellant: Shri S. N. Divatia & Shri Samir VoraFor Respondent: Shri Nitin Kulkarni, Sr. DR
Section 143(1)Section 143(1)(b)Section 160Section 161Section 164Section 250

section 164(1), as hitherto. 3. Similarly, other cases covered by the first proviso to section 164(1) and the first proviso to section 164(3) would also not attract the provisions of section 167B. Accordingly, tax will be payable in such cases at the rate ordinarily applicable

B B M B Welfare Society, Chandigarh vs. Income Tax Officer, Exemptions Ward, Chandigarh

The appeal of the assessee is treated as allowed for

ITA 732/CHANDI/2024[2019-20]Status: DisposedITAT Chandigarh17 Apr 2025AY 2019-20

Bench: Shri Sanjay Gargआयकर अपील सं./Ita No.732/Chd/2024 "नधा"रण वष" / Assessment Year : 2019-20

For Appellant: Shri Ramesh Trehan, C.AFor Respondent: Shri Vivek Vardhan, Addl. CIT, Sr.DR
Section 11Section 12ASection 164Section 164(3)

3. A perusal of the impugned order of the CIT(A) revealed that the ld. CIT(A) has relied upon the provision of Section 164(3) of the Act by treating the assessee Society as assessable in a representative capacity and where the shares of the beneficiaries of income were

Clestra Foundation, Bangalore vs. Income Tax Officer, Ward-4(2)(3), Bangalore

In the result, the appeal of the assessee is dismissed

ITA 1478/BANG/2024[2023-24]Status: DisposedITAT Bangalore18 Nov 2024AY 2023-24

Bench: Shri Ramit Kochar & Shri Keshav Dubeyassessment Year: 2023-24

For Appellant: Shri Ravindra T., A.RFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for department
Section 115JSection 143(1)Section 161Section 164Section 164ASection 167BSection 2Section 250Section 3

Balachandran, counsel for the assessee. Sri Menon contended that the definition of 'maximum marginal rate' contained in Explanation 2 to section 164(3) is free from doubt. Clestra Foundation, Bangalore Page 10 of 14 The counsel for the assessee contended that the interpretation placed by the Tribunal based on another ... correct. It is his contention that 'maximum marginal rate' is not the maximum rate as rightly held by the Tribunal. 3.Explanation2 to section 164(3) which is the subject-matter of these references is as follows : "Explanation 2.—In this section, 'maximum marginal rate' means the rate of income

Kapur Family Trust, Mumbai vs. I.T.O Ward 22(2)(1), Mumbai

In the result, we confirm the order of the ld

ITA 3835/MUM/2024[2023-24]Status: DisposedITAT Mumbai30 Oct 2024AY 2023-24

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri G. Santosh Kumar, Sr. A.R
Section 111ASection 143(1)Section 2Section 250

Trust revenue, and Sri P. Balachandran, counsel for the assessee. Sri Menon contended that the definition of c ontained in Explanation 2 to section 164(3) is free from doubt. The counsel for the assessee contended that the interpretation placed by the Tribunal based on another decision of the Tribunal ... correct. It is his contention that 'maximum marginal rate' is not the maximum rate as rightly held by the Tribunal. 2. Explanation2 to section 164(3) which is the subject-matter of these references is as follows : "Explanation 2.—In this section, 'maximum marginal rate' means the rate of income

Kapur Family Trust, Mumbai vs. ITO, Ward, 22(2)(1), Mumbai

In the result, we confirm the order of the ld

ITA 3834/MUM/2024[2022-23]Status: DisposedITAT Mumbai30 Oct 2024AY 2022-23

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Jayesh Dadia, A.RFor Respondent: Shri G. Santosh Kumar, Sr. A.R
Section 111ASection 143(1)Section 2Section 250

Trust revenue, and Sri P. Balachandran, counsel for the assessee. Sri Menon contended that the definition of c ontained in Explanation 2 to section 164(3) is free from doubt. The counsel for the assessee contended that the interpretation placed by the Tribunal based on another decision of the Tribunal ... correct. It is his contention that 'maximum marginal rate' is not the maximum rate as rightly held by the Tribunal. 2. Explanation2 to section 164(3) which is the subject-matter of these references is as follows : "Explanation 2.—In this section, 'maximum marginal rate' means the rate of income

Madhurika Educational & Charitable Trust, Chennai vs. Assistant Director of Income Tax, Chennai

In the result the appeal of the assesse is partly allowed

ITA 641/CHNY/2024[2010-11]Status: DisposedITAT Chennai16 Oct 2024AY 2010-11

Bench: Shri Manu Kumar Giri & Shri Amitabh Shuklaआयकर अपील सं./Ita No.641/Chny/2024 ननिाारण वर्ा /Assessment Year: 2010-11 Madhurika Educational & Asst. Director Of Income Tax Charitable Trust, Vs. (Exemptions)-Iv, No.11, Millers Road, Kilpauk, Chennai-34 Chennai-600010. [Pan: Aaatm8627M] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant By : Shri D.Anand, Advocate. प्रत्यर्थी की ओर से /Respondent By : Ms.Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 30.07.2024 घोर्णा की तारीख /Date Of Pronouncement : 16.10.2024 आदेश / O R D E R Per Amitabh Shukla, A.M : This Appeal Is Filed Against The Order Bearing Din & Order No.Itba/Nfac/S/250/2023-24/1059541811(1) Dated 10.01.2024 Of The Learned Commissioner Of Income Tax [Herein After “Cit(A), National Faceless Appeal Center[Nfac], Delhi, For The Assessment Years 2010- 11. Through The Aforesaid Appeal The Assesse Has Challenged Order U/S 250 Dated 10.01.2024 Passed By Nfac, Delhi. :- 2 -:

For Appellant: Shri D.Anand, AdvocateFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 11Section 12ASection 13Section 13(1)Section 13(1)(c)Section 13(2)(C)Section 13(3)(cc)Section 13(3)(d)Section 164(3)Section 250

taxation of the security deposit of Rs.70 lakhs invoking provisions of section 13(1)( C ) r.w.s 13(2) along with 3rd proviso to section 164(3) of the act. 3.0 The first issue raised by the appellant through grounds of appeal No.2 to 6 denial of exemption ... therefore was in violation of section 13 of the Income Tax Act. While doing so the assessing officer invoked 3rd provision to section 164(3) of the Income Tax Act and taxed the balance sum of Rs.30,40,000/- at Maximum Marginal Rate. It was further submitted that the appellant

Gulab Grandsons Foundation, Kolkata vs. ITO, Kolkata

In the result, the appeal of the assessee is allowed

ITA 353/KOL/2023[2018-19]Status: DisposedITAT Kolkata22 Jul 2024AY 2018-19

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 139Section 139(9)Section 164(1)Section 164(3)Section 44A

available to an individual in terms of provision of Section 164(1) of the Act. The Ld. A.R contended that the proviso to section 164(3) clause (ii) also falls under this provision. The Ld. A.R submitted that return has been filed in the status of trust as in case