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“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

Chhattisgarh State Beverage Corporation Ltd., Raipur vs. Deputy Commissioner of Income Tax, Circle-3(1), Raipur

In the result, appeal of the assessee is allowed for statistical purposes in terms of our aforesaid observations

ITA 198/RPR/2022[2013-14]Status: DisposedITAT Raipur03 Aug 2023AY 2013-14

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No. 198/Rpr/2022 "नधा"रण वष" / Assessment Year : 2013-14 Chhattisgarh State Beverages Corporation Limited Aabkari Bhavan, Chokra Nala, Labhandi, Raipur-492 001 (C.G.) Pan : Aaccc3163B .......अपीलाथ" / Appellant बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle-3(1), Raipur. ……""यथ" / Respondent

For Appellant: Shri Praveen Jain, CAFor Respondent: Dr. Simran Bhullar, CIT-DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 37

assessee, a wholesale distributor of alcoholic products, to State government in terms of section 23A of Excise Act, 1968, was merely an application of income and, thus, it could not be allowed as business expenditure under section 37(1). Therefore, I have reason to believe that the income

M/S. Aditya Vikram Birla Memorial Trust, Mumbai vs. DCIT (Exem)-1(1), Mumbai

In the result, the appeal of the assessee for AY 2014

ITA 1649/MUM/2023[2015-16]Status: DisposedITAT Mumbai31 Jul 2023AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Ronak Doshi & Deep ChauhanFor Respondent: Ms. N.V. Nadkarni, CIT-DR

such elow the section 11. Since, no such plea has been made before plea has been made before us for the application the application of income and therefore, we are not adjudicating upon therefore, we are not adjudicating upon the same. As far as giving the same

M/S. Aditya Vikram Birla Memorial Trust, Mumbai vs. DCIT (Exem)-1(1), Mumbai

In the result, the appeal of the assessee for AY 2014

ITA 1648/MUM/2023[2014-15]Status: DisposedITAT Mumbai31 Jul 2023AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Ronak Doshi & Deep ChauhanFor Respondent: Ms. N.V. Nadkarni, CIT-DR

such elow the section 11. Since, no such plea has been made before plea has been made before us for the application the application of income and therefore, we are not adjudicating upon therefore, we are not adjudicating upon the same. As far as giving the same

Shafa Home, New Delhi vs. ITO, (Exemption) Ward 2(1), New Delhi

Appeal stands allowed for statistical

ITA 725/DEL/2023[2017-18]Status: DisposedITAT Delhi31 Jul 2023AY 2017-18

Bench: Shri Kul Bharat

Section 11Section 11(2)Section 13(9)Section 143(3)

Facts, in brief, are that in this case the assessee filed its return of income on 24.09.2017 declaring income at nil after claiming application of income u/s 11 of the Income-tax Act, 1961 (the “Act”). The case was selected for scrutiny and the assessment was framed ... applied 85% of its income for charitable purposes and, therefore, the assessee-trust was not required to file Form 10 for shortfall in application of income and claiming accumulation thereof, and since the assessee-trust has filed the Form 10 during the assessment proceedings, in our view, the Assessing Officer

Asstt. Commissioner of Income Tax Central Circle-2(2), Nagpur vs. M/S. R.B.Seth Shreeram Narsingdas, Nagpur

In the result, the appeal filed by the Revenue in ITA

ITA 36/NAG/2018[2014-2015]Status: DisposedITAT Nagpur31 Jul 2023AY 2014-2015

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.36/Nag/2018 िनधा"रण वष" / Assessment Year : 2014-15 Acit, Central Circle-2(2), Vs. M/S. R.B. Seth Shreeram Nagpur. Narsingdas, Flat No.C-2, Yogeshwar Ganga Apartment, Ramdaspeth, Nagpur- 440025. Pan : Aacfr0227N Appellant Respondent C.O. No.05/Nag/2018 (Arising Out Of Ita No.36/Nag/2018) िनधा"रण वष" / Assessment Year : 2014-15 M/S. R.B. Seth Shreeram Vs. Acit, Central Circle- Narsingdas, 2(2), Nagpur. Flat No.C-2, Yogeshwar Ganga Apartment, Ramdaspeth, Nagpur- 440025. Pan : Aacr0227N Revenue By : Smt. Rashmi Mathur Assessee By : Shri Sudesh Bandhia Date Of Hearing : 20.07.2023 Date Of Pronouncement : 31.07.2023 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Nagpur [‘The 2 C.O. No.05/Nag/2018 Cit(A)’] Dated 28.12.2017 For The Assessment Year 2014-15. The Cross Objection Filed By The Assessee Against The Appeal Of The Revenue.

For Appellant: Shri Sudesh BandhiaFor Respondent: Smt. Rashmi Mathur
Section 143(3)Section 37Section 37(1)

towards development of the above roads. The Assessing Officer disallowed the same by holding to be a capital expenditure and it is an application of income not a business expenditure incurred wholly and exclusively for the purpose of business. On appeal before ... only claim made by the assessee is that it is Corporate Social Responsibility expenditure, thereby that it is not business expenditure, but an application of income based on the submissions made by the Assessing Officer. The Assessing Officer concluded that it is not an expenditure

ITO(E), Ward- 2(2), New Delhi vs. Sharda Institute of Indian Management Research Foundation Trust, New Delhi

In the result, the Appeal filed by the Revenue is dismissed

ITA 5717/DEL/2017[2012-13]Status: DisposedITAT Delhi27 Jul 2023AY 2012-13

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar Usi.T.A. No. 5717/Del/2017 (A.Y 2012-13)

Section 11Section 11(1)Section 11(6)Section 32Section 32(1)

depreciation as the entire expenditure for the purchase of capital assets is allowed as a deduction and the same is treated as application of income u/s 11(1) and claiming depreciation on the same capital assets is a double deduction and is not as per law as these capital assets ... correct in not appreciating the fact that allowance of depreciation on the assets tantamount to double deduction firstly in the form of allowing application of income in the year(s) of acquisition/purchase of assets and secondly in the form of depreciation allowance over a period of usage of assets/several assessment

Dy. Commissioner of Income Tax, (Exemption)-2(1), Mumbai vs. Trans Thane Creek Waste Management Association, Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 1559/MUM/2023[2012-2013]Status: DisposedITAT Mumbai25 Jul 2023AY 2012-2013

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2012-13 Dy. Cit (Exemption)-2(1), Trans Thane Creek Waste Room No. 608, 6Th Floor, Mtnl Management Association, Vs. Building, Cumballa Hill, P-128, Next To L & T Infotech Mumbai-400026. Ltd., Shill Mahape Road, Navi Mumbai-400701. Pan No. Aadct 4375 R Appellant Respondent

For Appellant: NoneFor Respondent: Mr. Prakash D. Choughule, DR
Section 11(1)Section 11(1)(a)Section 12ASection 143(3)Section 154Section 25

income of the accumulation is with respect to the income of the appellant and n appellant and not receipts net of application of income. ot receipts net of application of income. The receipts of Rs. The receipts of Rs. 21,32,69,612/- is the income for is the income

The ACIT-2(1), Bhopal vs. M/S. Rishiraj Memorial Education and Welfare Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 336/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The ACIT-2(1), Bhopal vs. M/S. Rishiraj Memorial Education and Welfare Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 335/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. Jai Narain Shiksha Samiti, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 268/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. Jai Narain Shiksha Samiti, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 267/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. Hai Hay Kshatriya Education Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 266/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. Hai Hay Kshatriya Education Society, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 265/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. H.K. Kalchuri Education Trust, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 264/IND/2017[2013-14]Status: DisposedITAT Indore21 Jul 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

The DCIT-2(1), Bhopal vs. M/S. H.K. Kalchuri Education Trust, Bhopal

In the result, appeals of the revenue are disposed of in the above terms as per section 158A of the Act

ITA 263/IND/2017[2012-13]Status: DisposedITAT Indore21 Jul 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 11Section 13(1)(c)Section 13(3)Section 201

facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing deduction as application of income acquisition of fixed assets. 10. On the facts and circumstances of the case and in law, the ld. IT(A) erred in allowing ... four assessees and re- compute accordingly. 6. A ground was also taken for allowing investment in capital assets as application of income for computing exemption u/s 11. Since we have held that assessee is a charitable organisation eligible for exemption u/s 11, the AO is directed to allow investment

Ayyappa Seva Samgham Bombay Trust, Mumbai vs. CIT (A)-53, Mumbai

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

ITA 134/MUM/2023[2016-17]Status: DisposedITAT Mumbai18 Jul 2023AY 2016-17

Bench: Shri B.R. Baskaran (Am) & Shri Narendra Kumar Choudhary (Jm)

Section 11Section 11(1)Section 11(1)(a)Section 11(6)Section 12A

assessee has claimed certain donations as “Corpus donations” and accordingly claimed the same as exempt. According to the AO, the receipts and application of income shown in the computation of income did not match. Further it is the case of the AO that the assessee did not furnish details ... corpus donations nor furnished copies of direction letters. He also noticed that the depreciation has been claimed by the assessee as application of income in violation of provisions of sec.11(6) of the Act. Accordingly, he re-computed the total income of the assessee by assessing corpus donations as normal

Bhagwant Singh Charitable Trust, New Delhi vs. ACIT(Exemption), Circle-1(1), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 6920/DEL/2018[2014-15]Status: DisposedITAT Delhi17 Jul 2023AY 2014-15

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. A. K. Batra, CAFor Respondent: Sh. Kanv Bali, Sr. DR
Section 11Section 11(1)Section 11(1)(c)Section 164(2)Section 2(15)

erred in confirming the action of the A.O for not allowing the amount of Rs. 69,72,310/- for purchase of car as application of income for charitable activities by observing that nothing has been brought on record to show how the purchase of high end car was to meet ... purchased cost of Rs. 69,72,310/- and claimed only the balance amount of Rs. 39,72,310/- as application of income. The car is not being used by the trustee for personal use and same was used only for activities of the trust. The Id. 2 Bhagwant Singh Charitable

DCIT CC 3(4) Cen RG 3, Mumbai vs. Patel Engineering Ltd, Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 2486/MUM/2017[2007-08]Status: DisposedITAT Mumbai07 Jul 2023AY 2007-08

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon’Ble

Section 14ASection 154Section 199(2)Section 80I

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI ABY T. VARKEY, HON'BLE JUDICIAL MEMBER AND

DCIT CC 3(4) Cen RG 3, Mumbai vs. Patel Engineering Ltd, Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 2485/MUM/2017[2006-07]Status: DisposedITAT Mumbai07 Jul 2023AY 2006-07

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon’Ble

Section 14ASection 154Section 199(2)Section 80I

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “J”, MUMBAI BEFORE SHRI ABY T. VARKEY, HON'BLE JUDICIAL MEMBER AND

Kasmir Concern Foundation, Budgam vs. Commissioner of Income Tax ( Exemptions), Chandigarh

In the result, the appeals of assessee in ITA No

ITA 252/ASR/2022[2022-23]Status: DisposedITAT Amritsar07 Jul 2023AY 2022-23

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 12Section 12ASection 2(15)Section 80GSection 80G(5)

genuineness of the objects of the Trust, but not the income of the Trust for charitable or religious purposes. The stage for application of income is yet to arrive i.e. when such Trust or Institution files its return. Therefore, we find that the judgments referred to by the learned counsel