“accumulation of income”

Charitable TrustsSection 11(2)Section 11(2)359 judgments

The decision most relied on for accumulation of income is Lissie Medical Institutions v. CIT (348 ITR 344), cited in 164 judgments on BharatTax.

Leading authorities on accumulation of income

Lissie Medical Institutions v. CIT

348 ITR 344 · 2012 · High Court

164

citing judgments

The Kerala High Court held that charitable institutions claiming exemption under Section 11 are not entitled to claim depreciation on assets used for charitable purposes, taking a view contrary to most other High Courts.

CIT v. Raj Kumar

318 ITR 462 · 2009 · High Court

119

citing judgments

Genuine trade advances made by a company in the ordinary course of business to a shareholder do not fall within the definition of deemed dividend under Section 2(22)(e) of the Income-tax Act.

CIT v. Nagpur Hotel Owners Association

247 ITR 201 · 2001 · Supreme Court

112

citing judgments

While there is no statutory time limit for filing Form 10 to claim exemption for income accumulation under Section 11(2), it must be furnished before the completion of assessment proceedings for the Assessing Officer to grant the exemption.

CIT v. Rao Bahadur Calavala Cunnan Chetty Charities

135 ITR 485 · 1982 · High Court

citing judgments

The income of a charitable trust, particularly income from property held under trust, for the purpose of claiming exemption under Section 11, must be computed in a normal commercial manner, without strict reference to the computation provisions for different heads of income like Section 14 or Section 24(a). This approach ensures that the income available for application or accumulation is assessed on commercial principles.

CIT v. Programme for Community Organisation

248 ITR 1 · 2001 · Supreme Court

citing judgments

The 15% exemption available to charitable trusts under Section 11(1)(a) is absolute and is not curtailed by the provisions of Section 11(2) regarding accumulation of income. Voluntary contributions received towards the corpus of a trust are excluded from the scope of income for Section 11(1)(a) exemption purposes.

CIT v. Programme for Community Organisation

228 ITR 620 · 1997 · High Court

citing judgments

For charitable or religious trusts, income for exemption under Sections 11 and 12 must be computed on a commercial basis, not head-wise as per Section 14, treating expenditure as a charge against income. The net income, along with non-corpus donations, forms the eligible base for determining the application of funds and the permissible accumulation under Section 11(1)(a).

CIT v. Mayur Foundation

274 ITR 562 · 2005 · High Court

citing judgments

The Gujarat High Court held that Form No. 10, for exercising the option under section 11(2) to accumulate income, can be submitted during assessment proceedings, including before the Income Tax Appellate Tribunal, which is a continuation of assessment proceedings. Such submission constitutes sufficient compliance for claiming exemption under section 11.

ACIT v. A.L.N. Rao Charitable Trust

216 ITR 697 · 1995 · Supreme Court

citing judgments

The exemption for income accumulated under section 11(1)(a) (presently 15%) is absolute, and section 11(2) does not restrict its operation or require such accumulated income to be invested in specified securities. Investment requirements under section 11(2) apply only to accumulation beyond this absolute exemption limit.

Judgments citing accumulation of income

Bundelkhand Gramotthan Evam Shaikchhik Vikas Samiti, Jhansi vs. Income Tax Officer, Ward Exemption, Agra

In the result, appeal filed by assessee is allowed

ITA 497/AGR/2025[2021-22]Status: DisposedITAT Agra05 Jan 2026AY 2021-22

Bench: : Shri S. Rifaur Rahmanassessment Year: 2021-22

Section 11Section 11(1)Section 11(1)(a)Section 12ASection 143(1)Section 154Section 250

religious purposes plus accumulated income not exceeding 15% of the income. Clause (a) of Section 11(1) of the Act permits automatic accumulation of income up to 15% without any precondition set. Once the operation of Sec. 11(1) (a) exhausted, then follows sub-section (2) of Section

Centre for E-Governance, Bangalore vs. DCIT, Exemption, Circle-1, Bangalore

ITA 936/BANG/2025[2021-22]Status: DisposedITAT Bangalore31 Dec 2025AY 2021-22

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

For Appellant: Shri S Parthasarthi, AdvocateFor Respondent: Shri Shivanand H Kalakeri, CIT (DR)

Section 11Section 11(1)(a)Section 12ASection 2(15)

sections 11 and 12 of the Act automatically stands denied for that year. 7.5 The AO also examined the assessee’s claim of accumulation of income under section 11(2) of the Act. The AO held that the purpose mentioned in Form No. 10—“For application for e-governance purposes

Ajara Parshwanathji Panchtithi Jain Karkhana Pedhi, Gujarat vs. ITO Exemption, WD 2, Rajkot, Gujarat

In the result, the appeal of the assessee is dismissed

ITA 475/RJT/2025[2018-19]Status: DisposedITAT Rajkot22 Dec 2025AY 2018-19

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

For Appellant: Shri G.R. Sanghvi, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR

Section 11(5)Section 143(3)

filed its return of income on 31.10.2018 showing income of Rs. Nil. The case has been selected for complete Scrutiny through CASS for accumulation of income by Trust. The CASS reason was examined with available records. The assessee trust has set apart/ accumulated of Rs.91,00,000/- a part ... Income Tax Act. The assessee has not furnished any details. Hence the amount accumulated/set apart by the assessee trust is not treated as "Accumulation of income" and is taxed accordingly. In view of the above, the assessment is completed u/s. 143(3) of the Income Tax Act as under: Returned

Shri Motilal Nagar Smriti Shikshan Samiti, Indore vs. CIT Exemption, Bhopal

Appeal is allowed

ITA 384/IND/2025[2020-21]Status: DisposedITAT Indore22 Dec 2025AY 2020-21

Bench: Shri Siddhartha Nautiyal

Section 11Section 11(1)Section 11(2)Section 119Section 139Section 142(1)Section 143(3)Section 263

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT

Electronics & Quality Development Centre, Gandhinagar vs. The Dy.CIT, (Exemption), Circle-1, Ahmedabad

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

ITA 248/AHD/2025[2022-23]Status: DisposedITAT Ahmedabad22 Dec 2025AY 2022-23

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Sanjay R Shah, CAFor Respondent: Shri R. P. Rastogi, CIT-DR

Section 11Section 139(1)Section 139(5)Section 143Section 143(1)Section 143(1)(a)

institutions. It filed its return of income claiming benefits under section 11 and 12 of the Act. The assessee also exercised option of accumulation of income as per provision of section 11(2) of the Act and accordingly filed Form No. 10 showing accumulation. However, assessee filed Form

National Foundation for Coporation Governance, Delhi vs. ITO Ward-2(4), Delhi

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

ITA 3462/DEL/2025[2023-24]Status: DisposedITAT Delhi22 Dec 2025AY 2023-24

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumarnational Foundation For Corporate Governance, Vs. Ito, Ward 2 (4), C/O Confederation Of Indian Industry, Delhi. The Mantosh Sondhi Centre, 23, Institutional Area, Lodhi Road, New Delhi – 110 003. (Pan : Aaatn7649E) (Appellant) (Respondent) Assessee By : Ms. Ekta Mumari, Advocate Revenue By : Shri Dheeraj Kumar Jaiswal, Sr. Dr Date Of Hearing : 30.09.2025 Date Of Order : 22.12.2025 O R D E R Per S. Rifaur Rahman: 1. The Assessee Has Filed Appeal Against The Order Of The Learned Addl / Jcit (A)–7, Kolkata [“Ld. Jcit(A)”, For Short] Dated 01.04.2025 For The Assessment Year 2023-24 Raising Following Grounds Of Appeal :- “1. That The Ld. Cit (A) Has Erred In Disposing The Appeal Against The Principles Of Natural Justice. 2. That The Ld. Cit (A) Has Erred In Law By Passing A Non- Speaking Cryptic Order Against The Principles Of Natural Justice.

For Appellant: Ms. Ekta Mumari, AdvocateFor Respondent: Shri Dheeraj Kumar Jaiswal, Sr. DR

Section 11Section 11(2)Section 11(2)(a)Section 11(3)Section 12ASection 143(1)

religious purposes. However, if it is not able to apply 85% of its income during the previous year, it is allowed to accumulate such income for the period offive years. In fact, the time limit of accumulation was earlier ten years which was restricted to five years w.e.f ... year starting from 1st April, 2022 onwards. Further, as far as the impugned assessment year is concerned, no addition can be made for accumulation of income pertaining to financial year 2016-17 as the assessee continues to be guided by the provisions as existed at the relevant point in time

Salwan Education Trust, New Delhi vs. DCIT, Exmp 2(1), Delhi

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

ITA 5275/DEL/2024[2018-19]Status: DisposedITAT Delhi12 Dec 2025AY 2018-19

Bench: Shri Challa Nagendra Prasad & Shri Brajesh Kumar Singh[Assessment Year: 2018-19] Salwan Education Trust, Dcit, Salwan Schools Campus, Pt Exemption 2(1), Girdhari Lal Salwan Marg, Vs Delhi, Rajinder Nagar, 24Th Floor, Civic Centre, New Delhi-110060, New Delhi-110002. Pan- Aacts9741A Assessee Revenue

Section 11(1)Section 11(2)Section 12ASection 143(2)Section 143(3)

10/09/2018 admitting NIL income. The case was ITA No.- 5275/Del/2024 Salwan Educa"on Trust selected for complete scrutiny to examine accumulation of income of the Trust and receipts of the Trust. Notice u/s 143(2) was issued on 22.09.2019, and duly served upon the assessee. 2.1 The assessee is registered ... 5275/Del/2024 Salwan Educa"on Trust assessee to make a specific mention of any purpose or purposes to enable it to accumulate the Income. The court held that section 11(2) of the Act did not prohibit plurality of purposes. The court also held that the purposes which the assessee

Haryana Building and Other Construction Workers Welfare Board, Panchkula vs. DCIT, Exemption, Sector 17

In the result, this appeal of the Assessee stands dismissed

ITA 339/CHANDI/2023[2018-2019]Status: DisposedITAT Chandigarh10 Dec 2025AY 2018-2019

For Appellant: Sh. Nikhil Goyal, AdvocateFor Respondent: Sh. Manav Bansal, CIT DR

Section 263

notification under Section 10(46), the Board was disclosing its receipts in the return and, where necessary, filing Form 10 to demonstrate accumulation of income for statutory application. • Post-notification, the Board has continued to file its return of income under Section 139(4C)(g), reporting its specified income ... receipts side of the Income and Expenditure Account. In order to safeguard its position, the Board simultaneously filed Form 10 for accumulation of income in accordance with Section 11(2) of the Income-tax Act, 1961, thereby ensuring that the statutory funds remained earmarked for welfare purposes. 7. 2. Subsequently

Haryana Building and Other Construction Workers Welfare Board, Panchkula vs. DCIT, Exemption, Chandigarh

In the result, this appeal of the Assessee stands dismissed

ITA 338/CHANDI/2023[2017-2018]Status: DisposedITAT Chandigarh10 Dec 2025AY 2017-2018

Bench: Shri Laliet Kumar & Shri Krinwant Sahay

For Appellant: Sh. Nikhil Goyal, AdvocateFor Respondent: Sh. Manav Bansal, CIT DR

Section 263

Haryana Building and Other Construction Workers Welfare Board, Panchkula vs. CIT(Exemption), Chandigarh

In the result, this appeal of the Assessee stands dismissed

ITA 63/CHANDI/2021[2015-16]Status: DisposedITAT Chandigarh10 Dec 2025AY 2015-16

Bench: Shri Laliet Kumar & Shri Krinwant Sahay

For Appellant: Sh. Nikhil Goyal, AdvocateFor Respondent: Sh. Manav Bansal, CIT DR

Section 263

Shri Multanchand Bora Trust, Pune vs. ACIT, Exemption, Circle- Aurangabad, Aurangabad

In the result, the Appeal of the assessee is partly allowed

ITA 1312/PUN/2025[2020-21]Status: DisposedITAT Pune09 Dec 2025AY 2020-21

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.1312/Pun/2025 निर्धारण वषा / Assessment Year: 2020-21 Shri Multanchand Bora Trust, V The Assistant/Deputy 132B/2A, Ganeshkhind Road, S. Commissioner Of Income Pune – 411007. Tax, Exemption Circle, Aurangabad. Pan: Aafts3329F Appellant/ Assessee Respondent / Revenue Assessee By Shri Shrenik Gandhi Revenue By Shri Amit Bobde –Cit(Dr) Date Of Hearing 11/09/2025 Date Of Pronouncement 09/12/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Is Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Exemption), Pune At Nashik Passed Under Section 263 Of The Income Tax Act, 1961 For A.Y.2020-21, Dated 30.03.2025 Emanating From Assessment Order U/S.143(3) Of The I.T.Act, Dated 20.09.2022. The Assessee Has Raised Following Grounds Of Appeal : “1. Ground No. 1: The Learned Cit (Exemption) Seriously Erred On The Facts & Law, In Exercising The Revisionary Powers Under Section

Section 143(3)Section 263Section 80G

declaring NIL Income. The Assessee’s case was selected for scrutiny for following reasons : i. Expenditure for Charitable or Religious Purposes. ii. Accumulation of Income by Trust Credit of Brought Froward TDS iii. 7. It is specifically mentioned in the Assessment Order that Assessee is a Public Charitable Trust duly ... Trusts and not made any inquiry to verify whether the Activities of Donee trust was charitable or not!Ld.CIT(Exemption) also observed that accumulation of income was not applied within five years as per section 11(2) of the Act. 9. In this case, we have carefully studied the paper

Shree Rander Road Jain Sangh, Surat vs. ITO, Exemption Ward, Surat

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

ITA 312/SRT/2025[2023-24]Status: DisposedITAT Surat28 Nov 2025AY 2023-24

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethsix Stict H./Ita No. 312/Srt/2025 (Ay 2023-24)

Section 10Section 11(3)Section 115BSection 124ASection 12ASection 143(1)Section 143(1)(a)Section 254(1)

filed its return of income on 12.10.2023 declaring Rs.nil income. The assessee-trust field Form-10 on 16.09.2017 for AY 2016-17 accumulation of income of Rs.43,60,000/- to be applied in future. Out of Rs.43,60,000/- assessee applied Rs.28,51,000/- upto end of previous year relevant ... Pune-Trib.). We note that the appellant has contended that the assessee filed Form-10 for AY 2016-17 on 16.09.2017 for accumulation of income of Rs.43,60,000/- to be applied in future. Out of this amount of Rs.43,60,000/-, assessee applied Rs.28,51,000/- upto

Saint Marks School Siksha Samiti, Agra vs. Jao (Exemptions), Agra

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

ITA 399/AGR/2025[2023-24]Status: DisposedITAT Agra26 Nov 2025AY 2023-24

Bench: Shri M. Balaganesh(Through Virtual Hearing) Saint Marks School Siksha Samiti, Vs. Jurisdictional Assessing 41, Saint Peters Colony, Ghatia, Officer-Exemption Hariparvat, Agra Ward, Agra (Appellant) (Respondent) Pan: Aaeas7764A

For Appellant: Shri Mahesh Agarwal, CAFor Respondent: Shri Anil Kumar, Sr. DR

Section 11Section 11(2)Section 12ASection 143(1)Section 154

solely on the basis of Form 108B, was incorrect and illegal as the same was made without appreciating that there was no any accumulation of income U/s 11(2) in the earlier years that could have been utilized for the application and reporting of this figure, by the auditors ... there was a surplus of Rs. 19,03,032/- which was stated to be below the maximum permissible limit of 15 percent for accumulation of income. The return of income for the assessment year 2023-24 was filed by the assessee declaring Nil income after claiming benefit of exemption under

Harmony Foundation, Mumbai vs. ITO Exem Ward 1(3), Mumbai

ITA 5725/MUM/2025[2016-17]Status: DisposedITAT Mumbai20 Nov 2025AY 2016-17

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Haridas Bhat, Ld. A.RFor Respondent: Shri A.M.K. Mahadevan, Ld. Sr

Section 11Section 11(2)Section 12ASection 142(1)Section 143(2)Section 250Section 80G

charitable activities and claimed exemption as per provision of section 11(2) of the Income Tax Act. 2. Further for claiming Exemption for Accumulation of Income in Excess of Specified Limit [Sec 11(2)], where 85% of income derived from trust property is not applied or is not deemed ... accumulations are within the object of the Trust. Therefore, we state that, the specification of certain purpose or purposes is needed for accumulation of income of the trust, and the same cannot be beyond the objects of the trust. The plurality of purpose for accumulation is not precluded, as long

National Solar Energy Federation of India, Delhi vs. Income Tax Officer, Ward Exemp 2(4), Delhi

In the result, assessee’s appeal is allowed

ITA 5483/DEL/2025[2017-18]Status: DisposedITAT Delhi20 Nov 2025AY 2017-18

Section 11(2)Section 12ASection 143Section 194CSection 2(15)Section 250Section 80G

merely states ‘Awareness in Solar Power and Events’. The same cannot be said to be the fulfillment of conditions for allowing the accumulation of income. The purpose mentioned is vague and therefore, held that the assessee is a not a mutual organization and is hit by proviso to Section

Scholars Education Trust of India, Jaipur vs. CIT Exemption, Jaipur

In the result, appeal of the assessee is allowed

ITA 1225/JPR/2025[2013-14]Status: DisposedITAT Jaipur12 Nov 2025AY 2013-14

For Appellant: Shri Mahesh Kumar, C.AFor Respondent: Shri Rajesh Ojha, CIT

Section 10Section 10(23)(vi)Section 11(5)Section 13(1)Section 13(3)Section 153(5)Section 2(41)

Exchange Ltd v. ITO: 6 SOT 811 (Jaipur), wherein it is held that there is no requirement under the Act for investment of accumulation of income in specified modes to the extent of 25 per cent of such income under section 11(1)(a) of the Act : "5.We heard ... section 11(2)(a)and section 11(2)(b) ofthe Act. Inour opinion,therefore, there is no requirement under the Act forinvestment of accumulation of income in specified modes to the extent of25 per cent of suchincome under section 11(1)(a)of the Act. This viewfinds support

Peoples Mobile Hospital, Mumbai vs. Income Tax Officer Exemption Ward 2(2), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 4116/MUM/2025[2022-23]Status: DisposedITAT Mumbai12 Nov 2025AY 2022-23

Bench: Shri Pawan Singh & Smt. Renu Jauhri

For Appellant: Respondent byFor Respondent: Ms. Vasanti Patel

Section 11Section 11(1)(a)Section 11(2)Section 11(5)Section 12ASection 139(4)Section 143(1)Section 250

grounds that the Audit Report in Form 10B and Form 10 being statement to be furnished for accumulation of income under section 11(2) of the Act were filed belatedly, though filed before filing the Return of Income which was filed on 30.12.2022 i.e. under section ... DDIT-CPC failed to appreciate that the time limit prescribed for filing the Audit Report in Form 10B and Form 10 for accumulation of income under section 11(2) of the Act is only declaratory and not mandatory. The lower authorities failed to appreciate that delay in filing the Audit

Foundation for Universal Responsibility of His Holiness the Dalai Lama, Delhi vs. ITO, Exemp. Ward-1(1), Delhi

In the result, appeal of the Assessee is allowed

ITA 1798/DEL/2025[2023-24]Status: DisposedITAT Delhi12 Nov 2025AY 2023-24

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A No.1798/Del/2025 िनधा"रणवष"/Assessment Year:2023-24 बनाम Foundation For Universal Income Tax Officer Responsibility Of His Holiness The Vs. (Exemption), Dalai Lama, Ward 1(1), Core-4A, Ugf, India, New Delhi. Habitat Centre, Upper Ground Floor, Lodhi Road, New Delhi. Pan No.Aaatf0174E अपीलाथ" Appellant ""यथ"/Respondent

Section 11(2)Section 11(3)(c)Section 115BSection 12ASection 143(1)

onwards. While holding so the Tribunal held as under: “13. In the instant case, the matter under consideration relates to accumulation of income done by the assessee pertaining to the FY. 201617 and FY. 2017-18 and as such, there is no amendment or change in law and the assessee ... language as well as the intent, we find that the amendment which has been brought in by the Finance Act, 2022 relates to accumulation of income pertaining to previous year starting from 1st April, 2022 onwards relevant to AY. 2023-24 and subsequent 7 FOUNDATION FOR UNIVERSAL RESPONSIBILITY

Shri Chintamani Parshwanath Shwetambar Murtipujak Jain Sangh, Mumbai vs. Exem. Ward 2(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 5038/MUM/2025[2023-24]Status: DisposedITAT Mumbai31 Oct 2025AY 2023-24

Bench: SHRI PAWAN SINGH (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri J. Kala, CAFor Respondent: Shri Virbhadra Mahajan, Sr. DR

Section 11Section 11(2)Section 11(2)(a)Section 11(3)Section 115BSection 12ASection 143(1)

from the financial year of accumulation as per the condition of section 11(1)(c) which existed prior to the amendment. Though the accumulated unutilised income of Rs. 37,00,000/- as at the end of 5th financial year was spent in the 6th financial year ... previous year. However, if it is not able to apply 85% of its income during the previous year, it is allowed to accumulate such income for a period not exceeding 5 years as per the following provisions, namely: (I) sub-section (2) of section

Dayspring Enterprises of India, Secunderabad vs. ITO., Exemption Ward-1(1), Hyderabad

In the result, the appeal filed by the assessee is allowed for statistical purposes in terms of our observations given hereinabove

ITA 1261/HYD/2024[2016-17]Status: DisposedITAT Hyderabad29 Oct 2025AY 2016-17

Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 139(1)Section 143(3)Section 263

file necessary 3 Dayspring Enterprises of India evidences in support of its case, including relevant financial statements, Form No.10B, and details of accumulation of income, if any. In response, the assessee filed a revised computation of gross receipts, accumulation of income u/s 11(1)(a) and accumulation of income ... corrected calculation for the A.Ys. 2015-16 and 2016-17. The assessee further submitted that, by an inadvertent error, the accumulation of income @ 15% u/s 11(1)(a) has been taken at Rs.78,32,246/- instead of Rs.2,15,04,978/-, and because of this, the assessee has set apart