“ application of income ”

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

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.

328 ITR 81 · 2010 · High Court

1,183

295 ITR 282 · 2007 · Supreme Court

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.

1,162

Godrej & Boyce Manufacturing Company Ltd. v. DCIT

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.

394 ITR 449 · 2017 · Supreme Court

683

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

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.

342 ITR 169 · 2012 · High Court

658

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

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.

440 ITR 26 · 2022 · High Court

614

291 ITR 519 · 2007 · Supreme Court

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

565

216 ITR 660 · 1995 · High Court

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

511

ITA 2188/MUM/2024[2012-13]Status: DisposedITAT Mumbai24 Jul 2024AY 2012-13

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

ITO(E)-1(4), Mumbai vs. J N Tata Endowment for the Higher Education of Indians, Fort

In the result, the appeal of the Revenue is dismissed

For Appellant: Mr. Sukhsagar Syal/Atual SuraiyaFor Respondent: Ms. Rajeshwari Menon, Sr. DR

Section 11Section 11(1)(c)Section 12ASection 260A

statutory notices under the Act were issued and complied with. While computing the exemption u/s 11 of the Act, the Assessing Officer disallowed application of income towards loans given as scholarship to various students for higher education abroad aggregating to Rs.3,47,50,026/-. 3. On further appeal ... taxmann.com 447 (Mumbai-Trib.) deleted the disallowance and directed to grant exemption u/s 11 of the Act in respect of loan scholarships as application of income. 4. Aggrieved, the Revenue is in appeal before us by way of raising grounds as reproduced above. 5. We have heard rival submission

Society of the Congregation of Franciscan Brothers, Mumbai vs. The Assistant Commissioner of Income Tax(E), Circle -2, Mumbai

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

ITA 4747/MUM/2023[2016-17]Status: DisposedITAT Mumbai24 Jul 2024AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh () Assessment Year: 2016-17 Society Of The Congregation Of The Asst. Cit (E), Circle 2(1), Franciscan Brothers, Mtnl Building, Peddar Road, Vs. 1, Mount Poinsur, Borivali West, Mumbai-400026. Mumbai-400103. Pan No. Aaats 1005 K Appellant Respondent

For Appellant: Ms. Rajeshwari Menon, Sr. DRFor Respondent: Mr. N Jayendran

Section 11Section 24

maintenance of provisions of section 24(a) are on account of repairs and maintenance of the property which are already allowed as application of income u/s 11 the property which are already allowed as application of income u/s 11 the property which are already allowed as application of income ... maintenance expenses towards property also availed repair and maintenance expenses towards property also availed repair and maintenance expenses towards property while computing application of income. The Ld. counsel for the while computing application of income. The Ld. counsel for the while computing application of income. The Ld. counsel

Nandlal Tolani Charitable Trust, Mumbai vs. ITO Exem Ward 2(1), Cumballa Hill, Mumbai

ITA 650/MUM/2024[2015-16]Status: DisposedITAT Mumbai23 Jul 2024AY 2015-16

Bench: Shri. Om Prakash Kant & Shri. Raj Kumar Chauhan

Section 10Section 11Section 14Section 24Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI. OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI. RAJ

Shri Jain Udyog Gruha, Mumbai vs. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC)

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

ITA 2702/MUM/2024[2016-17]Status: DisposedITAT Mumbai23 Jul 2024AY 2016-17

Bench: Shri Pavan Kumar Gadale & Smt Renu Jauhrishri Jain Udyog Gruha Vs. Ito(Exemp). Ward 2(3), 109-117, Piramal Chamber, C.P. Tank Road, Lalbaug, Near Madhavabag, Mumbai-400012. C.P Tank, Mumbai-400004. Pan/Gir No. Aabts9375B (अपीलाथ"/Appellant) (""यथ"/Respondent)

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

Whether investment in immovable property which is intended to be used for serving cause and objects of trust is more committed and firm 'application' of income of trust - Held, yes Assessee-trust, created for benefit of artists and actors, paid an advance of certain amount for purchase of leasehold rights ... children, etc. Assessing Officer was of view that advance amount given by assessee was an 'investment' and could not be treated as application of income towards object of trust and, therefore, assessee was not entitled to exemption under section 11 to said extent of advance given

Nandlal Tolani Charitable Trust, Mumbai vs. ITO (Exemption), Ward-2(1), Mumbai

ITA 113/MUM/2024[2014-15]Status: DisposedITAT Mumbai23 Jul 2024AY 2014-15

Section 10Section 11Section 14Section 24Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI. OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI. RAJ

Canara Bank Golden Jubilee Staff Welafare Fund, Bangalore vs. Commissioner of Income Tax(Exemptions), Bangalore

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

ITA 1034/BANG/2024[NA]Status: DisposedITAT Bangalore22 Jul 2024

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavcanara Bank Golden Jubilee The Commissioner Of Income- Staff Welfare Fund Tax (Exemption) Vs. No.14 Naveen Complex Bangalore. M.G.Road Bangalore – 560 001. Pan: Aaatc1435H. (Appellant) (Respondent) Appellant By: Sri.C.Ramesh, Ca Respondent By: Sri.D.K.Mishra, Cit-Dr Date Of Date Of Hearing : 16.07.2024 Pronouncement: 22.07.2024 O R D E R Per Prakash Chand Yadav, Jm : The Present Appeal Of The Assessee Is Arising From The Order Of The Learned Cit(Exemption), Bangalore Dated 27Th March, 2024 Having Din & Order No.Itba/Exm/F/Exn45/2023-24/ 1063440703(1).

For Appellant: Sri.C.Ramesh, CAFor Respondent: Sri.D.K.Mishra, CIT-DR

Section 12ASection 2(15)

charitable in nature; (b) whether the activities of the society or trust are genuine or not. 12. The collection of fees and application of income etc. would have to be examined at the stage of assessment proceedings u/s 143(3) of the Act. Granting registration per se does not mean

Deputy Commissioner of Income Tax (E)-1(1), Mumbai vs. Indian Education Society, Mumbai

In the result, both the appeals filed by the revenue in ITA No

ITA 1202/MUM/2024[2016-17]Status: DisposedITAT Mumbai22 Jul 2024AY 2016-17

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri H. M. Bhatt, Ld. DRFor Respondent: Shri Devendra Jain, Ld. AR

Section 11(1)(d)Section 144Section 144BSection 147Section 151Section 250

case may be], being contribution with a specific direction that it shall form part of the corpus, shall not be treated as application of income for charitable or religious purposes.” 8. In view of above, there is no requirement in the law to specify the purpose of corpus donation ... derived from property held under the trust under section 12 and, accordingly, the conditions prescribed under section 11(1)(a) regarding accumulation and application of income shall apply to it. [Para 5.2] The classification of the 'voluntary contributions' depends upon the specific direction. The group of words 'voluntary contributions made

Deputy Commissioner of Income Tax (Exemptions)-1(1), Mumbai vs. Indian Education Society, Mumbai

In the result, both the appeals filed by the revenue in ITA No

ITA 1150/MUM/2024[2015-16]Status: DisposedITAT Mumbai22 Jul 2024AY 2015-16

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri H. M. Bhatt, Ld. DRFor Respondent: Shri Devendra Jain, Ld. AR

Section 11(1)(d)Section 144Section 144BSection 147Section 151Section 250

Royal Swan Charitable Minority Trust, Nanded vs. ITO (Exemption), Nanded

In the result, appeals of the assessee for all the three AYs 2012-13,

ITA 1130/PUN/2023[2014-2015]Status: DisposedITAT Pune18 Jul 2024AY 2014-2015

Bench: Ms. Astha Chandra & Shree G.D. Padmahshali

For Appellant: Shri Rajendra AgiwalFor Respondent: Shri Sourabh Nayak

Section 133ASection 142A(1)Section 271(1)(C)Section 271(1)(c)

Departmental Valuation Officer (DVO). A.Ys. 2012-13, 2013-14 & 2014-15 3. Without prejudice if addition is upheld it should be allowed as application of income on the objects of the trust and income be reduced to NIL. 4. Basis the survey u/s 133A at the premises of charitable trust ... adjudication. For the sake of ready reference it reads thus :- “3. Without prejudice if addition is upheld it should be allowed as application of income on the objects of the trust and income be reduced to NIL.” 6. The brief facts are that the assessee is a charitable trust registered

Royal Swan Charitable Minority Trust, Nanded vs. ITO (Exemption), Nanded

In the result, appeals of the assessee for all the three AYs 2012-13,

ITA 1129/PUN/2023[2013-2014]Status: DisposedITAT Pune18 Jul 2024AY 2013-2014

Bench: Ms. Astha Chandra & Shree G.D. Padmahshali

For Appellant: Shri Rajendra AgiwalFor Respondent: Shri Sourabh Nayak

Section 133ASection 142A(1)Section 271(1)(C)Section 271(1)(c)

Royal Swan Charitable Minority Trust, Nanded vs. ITO (Exemption), Nanded

In the result, appeals of the assessee for all the three AYs 2012-13,

ITA 1128/PUN/2023[2012-13]Status: DisposedITAT Pune18 Jul 2024AY 2012-13

Bench: Ms. Astha Chandra & Shree G.D. Padmahshali

For Appellant: Shri Rajendra AgiwalFor Respondent: Shri Sourabh Nayak

Section 133ASection 142A(1)Section 271(1)(C)Section 271(1)(c)

Maharana Pratap Social Research and Education Society, Bhopal vs. Centralised Processing Centre, Bengaluru

Appeal is allowed in terms mentioned above

ITA 67/IND/2024[2020-21]Status: DisposedITAT Indore18 Jul 2024AY 2020-21

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year : 2008-09 Maharana Pratap Social C.P.C., Research & Education Bengaluru Society, H.No.6, Sector, Vidya Nagar, बनाम/ Hoshangabad Road, Vs. Bhopal, Huzur University S.O., Bhopal (Assessee/Appellant) (Revenue/Respondent) Pan: Aaaam9428K Assessee By Shri Pankaj Shah, Ca & Shri Soumya Bumb, C.A. Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 10.07.2024 Date Of Pronouncement 18.07.2024

Section 11Section 11(1)(a)Section 12ASection 139Section 143(1)Section 2(45)

return and eventually revised Form 10B. 3. That the revised Form 10B is in conformity with the audited financial statements wherein the total application of income as per audited financial statements 85 percent and the amount of income accumulated or set apart for application to charitable or religious purposes ... cent. Thus, the requirement of application of income of minimum 85 percent of total receipt to get an exemption u/s 11 has been fulfilled. 4. That the assessee has made a clerical error while filing the income tax return, the benefit of the exemption u/s 11 of the Act should

Ram Chameli Chadha Vishwas Girls College Society, Ghaziabad vs. ACIT Circle Exemption, Ghaziabad

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

ITA 796/DEL/2023[2018-19]Status: DisposedITAT Delhi18 Jul 2024AY 2018-19

Bench: the Ld. CIT(A), NFAC, Delhi.

Section 11Section 11(2)Section 12ASection 12A(1)(ba)Section 139(1)Section 139(9)Section 143(1)

assessee is in appeal before us raising the following grounds of appeal:- “1. Because CPC Bangalore, in making:- (i) Disallowance of claim for application of income on revenue account of Rs.3,07,07,033; (ii) disallowance of claim for application of income on capital account of Rs.8

Hcl Hong Kong Sar Ltd, New Delhi vs. ACIT, Circle 2(1)(1), International Taxation, New Delhi

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

ITA 79/DEL/2023[2015-16]Status: DisposedITAT Delhi18 Jul 2024AY 2015-16

Bench: the Ld. CIT(A), NFAC, Delhi.

Section 11Section 11(2)Section 12ASection 12A(1)(ba)Section 139(1)Section 139(9)Section 143(1)

Jawaharlal Nehru Shekshanik and Samajik Sansthan, Jaipur vs. Exemption Ward 1, Jaipur

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

ITA 630/JPR/2023[2016-17]Status: DisposedITAT Jaipur16 Jul 2024AY 2016-17

For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. A. S. Nehra, Add. CIT

Section 143(3)Section 250

granted/ certificate was not placed on record. The ld. AO also noted that the assessee has claimed capital expenditure as an application of income for which the assessee has not submitted any evidence and therefore, the assessee was denied the benefit of capital expenditure claimed by the assessee. Based

M/S. Kodava Education Society, Ponnampet vs. Assistant Commissioner of Income Tax, Exemptions, Circle-1, Bengaluru

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

ITA 764/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Keshav Dubeykodava Education Society Acit (Exemptions), Circle-1 Po Box No. 11, Halligattu Unity Building Annexe Vs. Ponnampet 571216 5Th Floor, Mission Road Pan – Aaaak1322J Bengaluru 560027 (Appellant) (Respondent) Assessee By: Shri Vishal Rao, Ca Revenue By: Shri Ganesh R. Gale, Standing Counsel Date Of Hearing: 28.05.2024 Date Of Pronouncement: 16.07.2024 O R D E R Per: Keshav Dubey, J.M. This Appeal At The Instance Of The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi /Cit(A) Under Section 250 Of The Income Tax Act, 1961 (The Act) Vide Din & Order No. Itba/Nfac/S/250/ 2003-24/1061703575(1) Dated 28.02.2024 For Assessment Year (Ay) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1 The Impugned Order Of The Appellate Commissioner Of Income Tax Is Liable To Set Aside In So Far As The Same Is Incorrect, Irregular, Improper, Unlawful & Oppose To The Law & Facts Of The Case. 2 That The Learned Appellate Commissioner Erred In Not Taking Cognizance Of The Fact That The Appellant Had Committed Certain Errors & Omissions In Filling Up The Return Of Income Which Ought To Have Been Substituted With The Correct Figures To Arrive At The Taxable Income, If Any & As Such The Impugned Order Is Liable To Set Aside.

For Appellant: Shri Vishal Rao, CAFor Respondent: Shri Ganesh R. Gale, Standing Counsel

Section 11Section 11(1)(a)Section 11(1)(d)Section 12ASection 143(3)Section 234BSection 234DSection 250

depreciation amounting to Rs. 1,50,15,191/- in its return of Income which is included in the total Revenue expenditure claimed as application of income amounting to Rs. 6,98,90,881/- Accordingly the Assessing Officer (AO) completed the assessment under Section 143(3) of the Act by disallowing ... depreciation claimed as application of Income amounting to Rs. 1,50,15,191/- as per the provisions contained in section 11(6) of the Act as the assessee has also claimed capital expenditure as application of income and thus assessed on a total taxable income of Rs.32

Parul University, Vadodara vs. The Dy.CIT, Exemption Circle-1, Ahmedabad

Appeals are allowed

ITA 993/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 992/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

income. 5.7 It is observed that as per provisions of Section 13 of the Act, provisions of Section 11 and 12 are not applicable for income of trust if certain violation as mentioned therein is made. As per section 13(1)(a) and 13(1)(b) of the Act, exemption ... corpus donation of Rs.2,19,31,550/- as deduction u/s 11(1)(d) of the Act and allowed the capital expenditure as an application of income under section 11 of the Act. 6. The Ld.Departmental Representative (DR), on the other hand, relied on the order of the AO and stated

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 991/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

ITA 1019/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

DCIT, Central Circle-1(2), Ahmedabad, Aayakar Bhawan, Ashram Road vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member