“application of income”

Judicial DoctrinesDiversion vs ApplicationDiversion vs Application1,603 judgments

The decision most relied on for application of income is Maxopp Investment Ltd. v. CIT (402 ITR 640), cited in 1,596 judgments on BharatTax.

Leading authorities on application of income

Maxopp Investment Ltd. v. CIT

402 ITR 640 · 2018 · Supreme Court

1,596

citing judgments

Disallowance under Section 14A is not automatic and requires the Assessing Officer to record satisfaction before applying Rule 8D. Only investments yielding exempt income are considered for disallowance, irrespective of their strategic nature.

Godrej & Boyce Mfg. Co. Ltd. v. DCIT

328 ITR 81 · 2010 · High Court

1,183

citing judgments

Rule 8D, for computing disallowance under Section 14A for expenses related to exempt income, applies from Assessment Year 2008-09 onwards; for prior years, a reasonable disallowance must be made. The disallowance under Section 14A cannot exceed the actual exempt income earned.

CIT v. Max India Ltd.

295 ITR 282 · 2007 · Supreme Court

1,162

citing judgments

Under Section 263, an assessment order is not erroneous and prejudicial to the interest of the revenue merely because the Principal Commissioner disagrees with the Assessing Officer's (AO) view, particularly if the AO has adopted one of two permissible views in law, unless that view is completely unsustainable. If due inquiries were made, the AO's order does not become erroneous solely because the fact of inquiries was not recorded.

Godrej & Boyce Manufacturing Company Ltd. v. DCIT

394 ITR 449 · 2017 · Supreme Court

683

citing judgments

Expenditure can only be disallowed under Section 14A if the income is exempt and not part of the total income. The Assessing Officer must first record dissatisfaction with the assessee's accounts or computation before proceeding to make a disallowance under Section 14A or applying Rule 8D.

Commissioner of Income Tax v. Nova Promoters and Finlease (P) Ltd.

342 ITR 169 · 2012 · High Court

658

citing judgments

To make an addition under Section 68 for unexplained cash credits, the Assessing Officer must conduct proper inquiry into the identity, genuineness, and creditworthiness of the creditor, especially concerning share application money. The assessee's initial discharge of burden by providing necessary details shifts the onus back to the AO for further investigation, including the source of source.

Olari Little Flower Kuries (P.) Ltd. v. UOI

440 ITR 26 · 2022 · High Court

614

citing judgments

The fee under Section 234E of the Income-tax Act cannot be levied for defaults in filing TDS statements committed prior to June 1, 2015, as the provision for its levy became effective only from that date.

Dilip N. Shroff v. JCIT

291 ITR 519 · 2007 · Supreme Court

565

citing judgments

A penalty notice issued under Section 271(1)(c) is invalid if the Assessing Officer fails to strike out the inapplicable limb (concealment or furnishing inaccurate particulars) from the standard proforma, indicating non-application of mind. The initial burden of proving concealment or inaccurate particulars rests on the Revenue.

CIT v. Kaushalya

216 ITR 660 · 1995 · High Court

511

citing judgments

A penalty levied under Section 271(1)(c) for concealment or furnishing inaccurate particulars of income is not invalidated by the Assessing Officer's failure to strike off irrelevant portions in the show cause notice, provided the assessee understood the exact charge and suffered no prejudice, indicating an application of mind by the AO.

Judgments citing application of income

Gulbanu A Lalani Educational Trust, Mumbai vs. CIT (Exemption), Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 1045/MUM/2025[N.A ]Status: DisposedITAT Mumbai15 Jul 2025

Bench: Shri Narendra Kumar Billaiya & Shri Anikesh Banerjeegulbanu A. Lalani Educational Vs Cit (Exemptions), Mumbai Trust, 02, Shivaji Complex, Road No.2, Anand Nagar, Dahisar East, Mumbai-400 068 Pan : Aaaag0013E Applicant Respondent

For Appellant: NoneFor Respondent: Shri Arun Kanti Datta – CIT DR

Section 11Section 12ASection 80GSection 80G(5)Section 80G(5)(iii)

assessee may be cancelled. We shall now examine as to whether the existence of objects for carrying out activities outside India or actual application of income outside India in accordance with its objects, would fall under any of the categories of "specified violations" listed out in the Explanation ... Institution permits carrying on objects outside India and if any income is applied for such objects, then it cannot be considered as application of income "for objects other than the objects of the charitable trust or institution" falling within the meaning of clause (a). Consequently, the clause (a) would

Muslim Foundation for Renaissance Kolhapur, Kolhapur vs. Jurisdictional AO, Exemption Ward, Kolhapur

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

ITA 1046/PUN/2025[2021-22]Status: DisposedITAT Pune14 Jul 2025AY 2021-22

Bench: Dr.Manish Borad

For Appellant: Ms. Chaitee LondheFor Respondent: Shri Deepak Kumar Kedia

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

received at Rs.7,97,493/-, the figure mentioned in the income-tax return is Rs.41,96,493/-. Further, since the assessee has made application of income during the year as per the corpus donation received during the year, the same fell short against the incorrect figure of Rs.41

Pandhi Charitable Trust, Mumbai vs. CIT(Exemption), Mumbai

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

ITA 562/MUM/2025[N.A ]Status: DisposedITAT Mumbai10 Jul 2025

Bench: Shri Om Prakash Kant & Shri Raj Kumar Chauhanpandhi Charitable Trust Vs. Cit (Exemption) 303, Mint Chambers, 45/47, Mint R. No. 601, 6Th Floor, Cumballa Road, Fort, Mumbai-400 001 Hill, Mtnl Te Building, Pan: Aaatp9226F Pedder Road, Dr. Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai-400 026

Section 11Section 12ASection 80G

India and for the purpose of education of Indian students/persons, thus the charitable purpose of the grant is education of indian persons. The application of income of the assessee completes at the point when the assessee released the grant which took place in india. The decision relied upon ... revenue is not applicable in the facts of the present case as the application of income took place in India and for the purpose of education of Indian students/persons. Therefore, for taking education by beneficiary from abroad would not amount to application of income of the assessee outside India

Tih Foundation for Iot and Ioe, Mumbai vs. CIT (Exemptions), Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 2904/MUM/2025[2025-26]Status: DisposedITAT Mumbai10 Jul 2025AY 2025-26

Bench: the decision of the appeal.”

For Appellant: Shri Subodh RatnaparikhFor Respondent: Shri Hemanshu Joshi, SR DR

Section 12ASection 8

satisfied, he can reject the same. This section does not refer to the activities in India or outside India. It refers to application of income for charitable or religious purposes in India as also with direction of order of the Board for application of income as aforesaid outside India. Reading ... relevant criteria for rejecting the application. In absence of order under section 11(1)(a)(c), one cannot seek benefit for application of income for charitable or religious purposes, outside India Therefore, the order dated 24-3-2004 made by the Director of Income-tax (Exemptions), Annexed at page

Sandvik Asia Employees Mutual Benefit Fund, Pune vs. Exemption Ward 1(2), Pune

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

ITA 998/PUN/2025[2018-19]Status: HeardITAT Pune09 Jul 2025AY 2018-19

Bench: Dr. Manish Borad

For Appellant: Smt. Deepa Khare, AdvocateFor Respondent: Shri Deepak Kumar Kedia, JCIT-DR

Section 10Section 11Section 12A

meant for the trusts registered u/s. 12A of the Act, and in this return which is furnished on 31/10/2018, assessee has claimed application of income at Rs.17,79,994/- against the gross receipts of Rs. 18,26,751/-. Since, assessee is not registered

Computer and Media Dealers Association, Pune vs. Income Tax Officer (Exemption), Pune

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

ITA 991/PUN/2025[2018-19]Status: DisposedITAT Pune09 Jul 2025AY 2018-19

Bench: Dr.Manish Borad

For Respondent: Assessee by Shri Swapnil Bhosale

Section 11Section 11(2)Section 12ASection 143(3)Section 250

file the income-tax return has entered the figures improperly as against the right column and is also not aware of mentioning the application of income in the correct column. 10. It is an admitted fact that the assessee initially failed to provide bills and vouchers before the ld. Assessing

Computer and Media Dealers Association, Pune vs. Income Tax Officer (Exemption), Pune

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

ITA 990/PUN/2025[2017-18]Status: DisposedITAT Pune09 Jul 2025AY 2017-18

Bench: Dr.Manish Borad

For Respondent: Assessee by Shri Swapnil Bhosale

Section 11Section 11(2)Section 12ASection 143(3)Section 250

Yuva Chintana Foundation, Bengaluru vs. Income Tax Officer, Exemptions Ward 2, Bengaluru

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

ITA 301/BANG/2025[2021-22]Status: DisposedITAT Bangalore09 Jul 2025AY 2021-22

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year : 2021-22

For Appellant: Shri Anoop Agarwal, CAFor Respondent: Shri Subramanian .S, JCIT-DR

Section 250Section 253(5)

order passed u/s. 154 of the Act dated 08/03/2023, we take a note of the fact that the CPC has suomoto disallowed the application of income claimed u/s. 11 / 12 of the Act amounting to Rs. 89,57,776/- on the sole ground that the assessee has not e-filed

Odia Samaj, Aradhna Enclave vs. Income-Tax Officer (Circle Exemp 2(1), Delhi), New Delhi

ITA 5251/DEL/2024[2018-19]Status: DisposedITAT Delhi09 Jul 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Manish Agarwalassessment Year: 2018-19

Section 11Section 12ASection 142(1)Section 143(2)Section 143(3)Section 144BSection 80G(5)(vi)

1 ODIA Samaj v. ITO A.Y. 2018-19 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE

ACIT-6(1)(1), Mumbai vs. Aditya Birla Sun Life Amc Ltd., Mumbai

In the result, the appeal by the Revenue is partly allowed

ITA 792/MUM/2025[2020-21]Status: DisposedITAT Mumbai08 Jul 2025AY 2020-21

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailaditya Birla Sun Life Amc Ltd., Tower 1, Jupiter Mill Compound, 17Th Floor, One World Center, 841, Senapati Bapat Marg, ............... Appellant Mumbai - 400013 Pan : Aaacb6134D V/S

For Appellant: Shri Ronak DoshiFor Respondent: Shri Rajesh Kumar Yadav, CIT-DR

Section 139(1)Section 142(1)Section 143(2)Section 143(3)Section 144BSection 250Section 40

same is incurred wholly and exclusively for the purposes of carrying on business or profession. As the CSR expenditure (being an application of income) is not incurred for the purposes of carrying on business, such expenditure cannot be allowed under the existing provisions of section 37 of the Income

Aditya Birla Finance Limited, Mumbai vs. Assistant Commissioner of Income-Tax - 2(1)(1), Mumbai

In the result, the appeal is partly allowed

ITA 4821/MUM/2024[AY 2017-18]Status: DisposedITAT Mumbai08 Jul 2025

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Yogesh Thar & Ms. S.Jayaram, ARsFor Respondent: Shri Rajesh Kumar Yadav, (CIT DR)

Section 135Section 143(3)Section 32Section 43BSection 80G

aforesaid provision is given in the Explanatory Memorandum to the Finance (No.2) Bill, 2014 and is reproduced as under; "CSR expenditure, being an application of income, is not incurred wholly and exclusively for the purposes of carrying on business. As the application of income is not allowed as deduction ... legislative intent and the rationale of disallowance of CSR expenditure referred to in section 135 of the Companies Act, that such expenditure is application of income and not incurred for the purposes of business. We are of considered view that this in itself justifies the grant of deduction

All India Womens Conference Kanpur, Kanpur vs. The Income Tax Officer, Ward-1(1)(1), Civil Lines Kanpur

ITA 510/LKW/2024[2022-23]Status: DisposedITAT Lucknow04 Jul 2025AY 2022-23

Bench: Shri. Sudhanshu Srivastavaassessment Year: 2022-23 All India Womens Conference V. The Income Tax Officer Kanpur Ward 1(1)(1) 16/4, Mahila Park, Civil Lines Civil Lines Sarsaiya Ghat, Kanpur Kanpur Tan/Pan:Aacta1200E (Appellant) (Respondent) Appellant By: Shri Swaran Singh, C.A. Respondent By: Shri Sanjeev Krishna Sharma, D.R. O R D E R This Appeal Has Been Preferred By The Assessee Against The Order Dated 25.06.2024, Passed By The Addl/Jcit(A)-2, Kolkata For Assessment Year 2022-23. 2.0 The Brief Facts Of The Case Are That The Assessee Is A Society Registered Under The Societies Registration Act Xxi Of 1860 & Running Working Women’S Hostel At Subsidized Rate Under The Name & Style Of ‘All India Womens Conference’, Kanpur. The Assessee-Society Is Also Registered Under Section 10Ac Of The Income Tax Act, 1961 (Hereinafter Called “The Act’). During The Year Under Consideration, The Assessee-Society E-Filed Its Return Of Income, Declaring Nil Income. The Assessee-Society During The Year Under Consideration Had Shown Gross Receipts Of Rs.10,52,829/- And

For Appellant: Shri Swaran Singh, C.AFor Respondent: Shri Sanjeev Krishna Sharma, D.R

Section 10Section 10ASection 143(1)

Assessee-Society during the year under consideration had shown gross receipts of Rs.10,52,829/- and ITA No.510/LKW/2024 Page 2 of 8 claimed application of income for charitable or religious purposes at Rs.10,19,724/- and the amount accumulated or set apart at Rs.32,755/-. The CPC, Bangalore passed Intimation

Gujarat Mineral Development Corporation Limited, Khanji Bhavan vs. Pr. Commissioner of Income Tax-1, Aayakar Bhawan(Vejalpur), Ahmedabad

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

ITA 651/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad04 Jul 2025AY 2020-21

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2020-21

For Appellant: Shri Rignesh Das, CIT-DR

Section 143(1)Section 143(3)Section 14ASection 263Section 80GSection 80I

inserted by the Finance Act, 2014. The PCIT noted that the nature and motive of CSR under the Companies Act is application of income, and such expenditure is not incurred wholly and exclusively for business purposes. Allowing deduction of such expenses, even in the form of donation under section

Rao Bahadur Dharmaparavartha Gubbi Thotadappas Charities, Bengaluru vs. ITO(Exemptions) Ward-2, Bangalore

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

ITA 285/BANG/2025[2018-19]Status: DisposedITAT Bangalore02 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan Kassessment Year: 2018-19

For Appellant: Dr. N Suresh, CAFor Respondent: Shri Subramanian S, JCIT(DR)

Section 11Section 11(2)Section 11(3)Section 11(3)(a)

provisions of law. As per the ld. AR, the impugned amount representing the reversal of interest income cannot be equated with the application of income for charitable purposes. However, the ld. AR for quantification purpose of the impugned amount . Page 6 of 8 on reversal of interest income requested

Palam Rural Centre, Tiruppur vs. ACIT, Exemptions, Coimbatore

In the result, the appeal filed by the assessee is allowed for statistical purposes and the Stay Application filed by the assessee is dismissed as infructuous

ITA 1560/CHNY/2025[2018-19]Status: DisposedITAT Chennai01 Jul 2025AY 2018-19

Bench: Shri George George K & Shri S.R.Raghunathaआयकर अपील सं./Ita No.:1560/Chny/2025 & S.A.No.51Chny/2025 [Arising In Ita No.: 1560/Chny/2025] िनधा"रण वष" / Assessment Year:2018-19 Palam Rural Centre, The Asst. Commissioner Of Pethampalayam, Vs. Income Tax (Exemptions), Veerapandi S.O., Coimbatore. Tiruppur – 641 605. [Pan: Aaatp-2929-F] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से/Appellant By : Shri. Edser Raj, Advocate ""थ" की ओर से/Respondent By : Ms. Sita Krishnamoorthy, J.C.I.T.

For Appellant: Shri. Edser Raj, AdvocateFor Respondent: Ms. Sita Krishnamoorthy, J.C.I.T

Section 11Section 12ASection 139

make it clear that since in the absence of registration under section 12AA of the Act, there is no question of any application of income. It is ordered accordingly." It is submitted that, the above case is clearly mentioned that eventhough there is an absence of registration under section 12AA

Acg Pam Pharma Technologies Pvt. Ltd, Mumbai vs. Principal Commissioner of Income Tax-4, Mumbai

In the result, appeal filed by the assessee is allowed

ITA 2734/MUM/2025[2021-22]Status: DisposedITAT Mumbai01 Jul 2025AY 2021-22

Bench: Shri Sandeep Gosain(Jm) & Shri Prabhash Shankar(Am) Acg Pam Pharma Technologies Pcit-4 Private Limited Room No. 629 127, Kandivali Industrial Vs. Aayakar Bhavan Estate, Charkop, Kandivali W M.K. Road Mumbai-400 067. Mumbai-400 020. Pan : Aaacp4776H Appellant Respondent

For Appellant: Shri Aditya RaiFor Respondent: Shri K.K. Ved

Section 135Section 143(3)Section 263Section 30Section 36Section 37Section 37(1)Section 80G

same is incurred wholly and exclusively for the purposes of carrying on business or profession. As the CSR expenditure (being an application of income) is not incurred for the purposes of carrying on business, such expenditures cannot be allowed under the provisions of section 37 of the Income

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

Accordingly, the same are being dismissed as having become academic in nature

ITA 362/LKW/2020[2014-15]Status: DisposedITAT Lucknow30 Jun 2025AY 2014-15

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Amit Singh Chauhan, D.R

Section 10Section 11Section 12ASection 147Section 148

computing the income of the assessee as under: Gross Income 85,97,534/- Less 15% 12,89,630/- Balance 73,07,904/- Less: Application of income i) Revenue expenses 50,14,780/- ii) Capital expenses 4,53,474/- 54,68,254/- 18,39,650/- Addition on account of depreciation ... capital value of the assets on which depreciation was claimed had been allowed as a deduction under section 11 as an application of income for religious or charitable purposes. Once again in CIT vs. ITA No.360, 361 & 362/LKW/2020 Page 19 of 24 Institute of Banking Personnel Selection (IBPS

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

Accordingly, the same are being dismissed as having become academic in nature

ITA 361/LKW/2020[2011-12]Status: DisposedITAT Lucknow30 Jun 2025AY 2011-12

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Amit Singh Chauhan, D.R

Section 10Section 11Section 12ASection 147Section 148

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

ITA 360/LKW/2020[2010-11]Status: DisposedITAT Lucknow30 Jun 2025AY 2010-11

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Respondent byFor Respondent: Shri Rakesh Garg, Advocate

Section 10Section 11Section 12ASection 147Section 148

computing the income of the assessee as under: Gross Income Less 15% Balance 85,97,534/- 12,89,630/- 73,07,904/- Less: Application of income i) Revenue expenses 50,14,780/- ii) Capital expenses 4,53,474/- 54,68,254/- 18,39,650/- Addition on account of depreciation

Gramvikas Sanstha Chikhali, Ahmednagar vs. CIT Exemption, Pune

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

ITA 460/PUN/2025[NA]Status: DisposedITAT Pune30 Jun 2025

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Shri Sharad VazeFor Respondent: Shri Vishwas S. Mundhe

Section 12ASection 800(5)Section 800(5)(v)Section 800(5)(vi)Section 80GSection 80G(5)Section 80G(5)(v)Section 80G(5)(vi)

expenses on religious objectives, details of income from profits and gains of business, details of provisions of trust deed / MoA for transfer or application of income for any purpose other than charitable purposes etc. in order to ascertain the overall nature of the activities of the assessee. Compliance