“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

The Dharmodayam Company, Thrissur vs. ITO, Ward-1(1), Thrissur

In the result, the appeals in ITA No

ITA 792/COCH/2024[2009-10]Status: DisposedITAT Cochin30 May 2025AY 2009-10

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav., Jm

For Appellant: Ms. Niveditha K. Kammath, AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R

Section 11Section 11(2)Section 12ASection 143(3)Section 25Section 31

specific object for the funds were accumulated. It is not necessary that the specific purpose should be mentioned in Form 10 for accumulation of income under the provisions of section 11(2) of the Act. In the light of this proposition we are of the considered opinion that the matter

Salt Lake Sanskritik Sansad, Kolkata vs. DCIT, Circle CPC, Bengaluru

In the result, the appeal of the assessee is allowed

ITA 40/KOL/2025[2023-24]Status: DisposedITAT Kolkata30 May 2025AY 2023-24

Bench: Shri Duvvuru Rl Reddy, Vice-(Kz) I.T.A. No. 40/Kol/2025 Assessment Year: 2023-2024 Salt Lake Sanskritik Sansad,…………...……Appellant Sector-1, Trust Bhawan, Ca-49, Salt Lake, Kolkata-700064, West Bengal [Pan:Aaets4162K] -Vs.- Deputy Director Of Income Tax,................Respondent Circle Cpc, Bengaluru, Prestige Alpha, Post Bag No. 2, Electronic City Post, Hosur Road, Bangalore-560 100, Karnataka Appearances By: Shri N. Kausic, A.R., Appeared On Behalf Of The Assessee Shri Kallol Mistry, Jcit, Sr. D.R., Appeared On Behalf Of The Revenue Date Of Concluding The Hearing: April 23, 2025 Date Of Pronouncing The Order: May 30, 2025 O R D E R

Section 11Section 11(2)Section 119(2)Section 119(2)(b)Section 12ASection 139Section 139(1)Section 143(1)Section 2

utility. The assessee Charitable Trust filed its return of income on 01.09.2023, prescribed Form No. 10 vide Acknowledgment No. 221781630010923 in respect of accumulation of income of a sum of Rs.5,73,129/- under sub- section 2 of section 11 of the Income Tax Act. The assessee-Society also submitted

M/S. S I Media LLP, Bengaluru vs. DCIT, Circle-1(1)(1), Bengaluru

In the result appeal of the assessee allowed for statistical purposes

ITA 78/BANG/2025[2021-22]Status: DisposedITAT Bangalore29 May 2025AY 2021-22

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

For Appellant: Ms. Sunaina Bhatia, AdvocateFor Respondent: Shri Subramanian S, JCIT (DR)

from the income derived from property held under trust wholly for charitable purposes in the case of charitable organizations and for determining accumulation of income required thereof keeping in view provisions of Section 11 , and secondly while computing the income in commercial parlance by taking into effect depreciation expenses

Shree Subrahmanya Temple, Thokur vs. ITO, Exemptions, Ward-2, Mangalore

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

ITA 2437/BANG/2024[2437]Status: DisposedITAT Bangalore28 May 2025

Bench: Shri Waseem Ahmedassessment Year: 2016-17

For Appellant: Smt. Sheetal Boarkar, AdvocateFor Respondent: Shri Ganesh R Gale, Standing Counsel for Dept

Section 11Section 11(1)Section 11(1)(a)Section 11(2)Section 111Section 13(9)

providing the exemption to the extent of 15% of the income. Regarding the delay in filing of return and Form 10B for accumulation of income as per subsection 2 of section 11 of the Act, the learned AR contended the Form 10B was furnished before the completion of assessment which

Marol Education Academy, Mumbai vs. Income Tax Officer Exemptions Ward - 2(1), Mumbai

ITA 1575/MUM/2025[2012-13]Status: DisposedITAT Mumbai28 May 2025AY 2012-13

For Appellant: Shri Vipul ShahFor Respondent: Smt. Kavita P. Kaushik

Section 10Section 11(6)Section 143(3)Section 250Section 263

computation of income of the Trust from the property held for charitable or religious purposes and it also provides for application and accumulation of income. On the other hand, section 28 of the Income-tax Act deals with chargeability of income from profits and gains of business and section

Siva Sakthi Sathya Sai Charitable Trust, Chennai vs. ITO, Exemptions Ward 4, Chennai

In the result, the appeal of the assessee is allowed

ITA 2944/CHNY/2024[2018-19]Status: DisposedITAT Chennai26 May 2025AY 2018-19

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita No.: 2944/Chny/2024 िनधा"रण वष" / Assessment Year: 2018-19 Siva Sakthi Sathya Sai Charitable Income Tax Officer, Trust, Vs. Exemptions Ward 4, 3/16, Ponniamman Koil Street, Chennai. Alapakkam, Chennai – 600 116. [Pan: Aadts-5679-J] (अपीलाथ"/Appellant) (""थ"/Respondent)

For Appellant: Shri. N. Arjun Raj, AdvocateFor Respondent: Dr. M.D. Vijay Kumar, J.C.I.T

Section 11Section 139

availability of option in the ITBA web portal for filing rectified Form No. 10 dated 13.04.2019 for the purpose of claiming / correcting accumulation of income in terms of Section 11 (2) of the Act, which lack of option could not be attributable to the appellant, the impugned order passed without ... reckoned as directory and not mandatory and further ought to have appreciated that having filed the said Form No.10 in pleading for correct accumulation of income well before the commencement of assessment proceedings should be considered as sufficient compliance for the tax exemption computation benefit under Section

Jayshri Gopallal Maharajshrini Surat Srusti Trust, Surat vs. ITO, Exemption Ward, Surat

In the result, the appeal of the assessee is allowed

ITA 1238/SRT/2024[2022-23]Status: DisposedITAT Surat06 May 2025AY 2022-23

Bench: Shri Siddhartha Nautiyal & Shri Bijayananda Pruseth

For Appellant: of Shri Sapnesh Sheth, C.AFor Respondent: Shri Mukesh Jain, CIT DR

Section 12ASection 143(1)

making huge addition of Rs. 44,68,753/- to the income of assessee by not allowing the amount claimed as application of income & accumulation of income. 3. On the facts and circumstances of the case as well as law on the subject, even otherwise also the addition ... under section 143(1) of the Act, in which the amount claimed by the assessee as application of income and accumulation of income was disallowed and gross receipts of the assessee trust were taxed in the hands of the assessee. The reason for such disallowance in the 143(1) intimation

Archana Foundation, Mumbai vs. Asst Director of Income Tax, Centralised Processing Centre

In the result, appeal filed by the assessee is allowed

ITA 848/MUM/2025[2019-2020]Status: DisposedITAT Mumbai06 May 2025AY 2019-2020

Bench: BEFOR SHRI ANIKESH BANERJEE (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri Amit AgrawalFor Respondent: Shri Asif Karmali

Section 11(2)Section 119(2)(b)Section 12ASection 143(1)Section 250

read with rule 17 of the Income-tax Rules, 1962 - Charitable or religious trust - Exemption of income from property held under (Accumulation of income) - Assessment years 2000-01 and 2001-02 - Whether for excluding an income of a charitable trust 5 Archana Foundation from net of taxation under section ... read with rule 17 of the Income-tax Rules, 1962 - Charitable or religious trust - Exemption of income from property held under (Accumulation of income) - Assessment year 2014-15 - Assessee a religious trust claimed deduction under section 11(2), amounting to Rs. 6.50 crores - Assessing Officer denied deduction so claimed

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 41/JPR/2025[2014-15]Status: DisposedITAT Jaipur05 May 2025AY 2014-15

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT

Section 10Section 144Section 147Section 151Section 234

Exemption) v/s Manav Bharati Child Institute & Child Psychology 20 SOT 517(Del) held that though filing of Form No. 10 in respect of accumulation of Income of surplus income is mandatory to claim exemption u/s 11 and 12, the same can be filed at any time during the pendency ... assessment proceeding and benefit of accumulation of income cannot be denied. • In the case of Haryana Welfare Board v/s CIT 83 CCH 268(P&H) it has been held that information in form 10 was required to be furnished at any time before the finalization of the assessment proceedings

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 39/JPR/2025[2013-14]Status: DisposedITAT Jaipur05 May 2025AY 2013-14

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT

Section 10Section 144Section 147Section 151Section 234

Watershed Organisation Trust, Ahmednagar vs. ACIT Exemption Circle, Aurangabad

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

ITA 1976/PUN/2024[2015-16]Status: DisposedITAT Pune02 May 2025AY 2015-16

For Appellant: Shri P.D. KudvaFor Respondent: Shri Mallikarjun Utture

Section 10Section 11Section 11(2)Section 11(5)Section 12ASection 143(2)Section 143(3)

addition made by the AO to declared income of Rs 8,53,50,000 claimed as deduction u/s 11(2) on account of accumulation of income out of current year's income, on grounds that the purpose "Rural Development" mentioned by the assessee in Form No 10 was general ... adding to declared income Rs.8.53,50,000/- claimed by the assessee as deduction u/s 11(2) on account of accumulation of income out of the current years income on grounds that the purpose "Rural Development" mentioned by the assessee in Form No. 10 was general in nature without indicating specific

Kerala Catholic Association, Mumbai vs. Income Tax Officer Exem Ward 1(4), Mumbai

Appeal of the assessee is allowed

ITA 945/MUM/2025[2017-18]Status: DisposedITAT Mumbai29 Apr 2025AY 2017-18

Bench: Ms. Kavitha Rajagopal & Smt. Renu Jauhriआयकर अपील सं./Ita No. 945/Mum/2025 (निर्धारण वर्ा / Assessment Year :2017-18) Kerala Catholic V/S. Ito Exemption, Ward 1(4), Association बिधम Mumbai Kca Bhavan, St. Francis Of Room No. 612, 6Th Floor, Asis International School, Cumballa Hill Mtnl Te P.L. Lokhande Marg, Building, Pedder Road, Dr. Chembur, Mumbai, Gopalrao Deshmukh Marg, Maharashtra-400043 Mumbai, Maharashtra- 400026 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaatk3121E Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी

For Appellant: Shri Tanzil R. PadvekarFor Respondent: Shri Ajit Pal Singh

Section 11(1)Section 11(2)Section 11(2)(c)Section 143(3)Section 250

filed Form 10 on or before the due date of filing of return, which is a mandatory requirement for claiming the benefit of accumulation of income. 6. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal. Ld. AR has submitted that the disallowance ... filed during the course of P a g e | 6 A.Y. 2017-18 Kerala Catholic Association assessment proceedings and allow the benefit of accumulation of income as per the provisions of section 11 of the Act. 12. In view of the above, appeal of the assessee is allowed. Order pronounced

Mumbai Railway Vikas Corporation Ltd, Mumbai vs. C.I.T (E), Mumbai

ITA 3227/MUM/2024[2018-19]Status: DisposedITAT Mumbai29 Apr 2025AY 2018-19

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri Vipul JoshiFor Respondent: Shri Sanyogita Nagpal

Section 143Section 143(3)Section 144BSection 263Section 617

points on 27.12.2017 (copy of the submission is enclosed). In its submission, the assessee at point no. 11 had submitted details of the accumulation of Income of previous FYs and utilisation thereof during the FY 2015-16. The said details in a chart were submitted as Annexure "F". 1.2 Further ... other requirements, at point no. 11 on page no. 02 of the said notice, the Ld. AO specifically asked for details of the Accumulation of Income made u/s.11(2) in the last 10 years and utilisation thereof. The assessee vide its reply dated 15.10.2018 provided details as asked

Joy of Sharing Foundation Charitable Trust, Chennai vs. ITO, Exemptions Ward-4, Chennai

In the result, appeal filed by the assessee is allowed

ITA 2965/CHNY/2024[2022-23]Status: DisposedITAT Chennai23 Apr 2025AY 2022-23

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.K.M. Mohan Dass, CA

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

referred to as "AY”) 2022-23. 2. The main grievance of the assessee is against the action of the Ld.CIT(A) disallowing the accumulation of income u/s.11(2) of the Income Joy of Sharing Foundation Charitable Trust :: 2 :: Tax Act, 1961 (hereinafter referred to as ‘the Act‘) on the ground ... with Audit Report (Form 10B) admitting ‘Nil’ income. According to the assessee, while filing RoI & Audit Report, the assessee Trust uploaded Form 10 [accumulation of income] and was of the bona fide belief that it has uploaded the Form 10 in the Income Tax Portal, but to its dismay when

Deputy Commissioner of Income Tax, Central Circle, Ballari vs. Ms Al Badar Educational and Charitable Trust, Ballari

In the result, the appeals of the revenue are allowed and the

ITA 1483/BANG/2024[2017-18]Status: DisposedITAT Bangalore22 Apr 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Prakash Chand Yadav

Section 12ASection 133ASection 143(1)Section 164(2)

total income of the appellant by adding unaccounted cash receipts to the declared income of the appellant and verified whether there was any accumulation of income over and above 15% or not, is not at all relevant having regard to the fact that the impugned cash is capitation fees

Al-Badar Educational and Charitable Trust, Kalaburagi vs. Deputy Commissioner of Income Tax, Central Circle, Bellary

In the result, the appeals of the revenue are allowed and the

ITA 1410/BANG/2024[2016-17]Status: DisposedITAT Bangalore22 Apr 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Prakash Chand Yadav

Section 12ASection 133ASection 143(1)Section 164(2)

Shruparak Educational and Medical Trust, Mumbai vs. Income Tax Officer Exem. Ward 2(3), Mumbai

In the result, the grounds of appeal raised by the assessee are allowed

ITA 927/MUM/2025[2015-16]Status: DisposedITAT Mumbai21 Apr 2025AY 2015-16

Bench: Shri Pawan Singh & Shri Girish Agrawalshruparak Educational & Medical Ito (Exem.) Ward – 2(3) Trust, 702, Anne Ville, 30Th Road, Room No. 617, Cumballa T.P.S. 3, Bandra (W), Hills, Mtnl-Te Building, Vs. Mumbai – 400 050. Pedder Road, Dr Gopalrao Deshmukh Marg, Pan: Aabts 7822 F Mumbai – 400026. (Appellant) (Respondent) Assessee By : Shri Tanzil R. Padvekar, Advicate Revenue By : Shri Kiran Unavekar, Sr. Dr Date Of Hearing : 19.03.2025 Date Of Pronouncement : 21.04.2025 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Assessee Is Directed Against The Order Of Ld. Cit(A) Dated 09.06.2023 For A.Y. 2015-16. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Tanzil R. Padvekar, AdvicateFor Respondent: Shri Kiran Unavekar, Sr. DR

Section 11Section 11(1)Section 11(2)Section 12ASection 254(1)

assessee trust furnished Form No. 10 after last date of hearing but before completion of assessment, the assessee is entitled to benefit of accumulation of income under section 11. Similar view was taken by Telangana High Court in Samaj Seva Nidhi vs ACIT (Inv.) (2015) 62 taxmann.com 317 (Andhra Pradesh ... ADIT (Exemptions) (supra). Thus, considering the aforesaid factual and legal position, we direct the assessing officer to verify the fact about accumulation of income and allow relief to 6 Shruparak Educational and Medical Trust A.Y. 2015-16 the assessee. In the result, the grounds of appeal raised by the assessee

Income Tax Officer, Kochi vs. Yogakshema Trust, Aluva

In the result, the appeal filed by Revenue is dismissed

ITA 562/COCH/2024[2018]Status: DisposedITAT Cochin02 Apr 2025

Bench: Shri George George K., Vp & Shri Inturi Rama Rao, Am Assessment Year: 2018-19 The Income Tax Officer .......... Appellant 4Th Floor, Aayakar Bhavan Old Railway Station Road, Cochi 682018 [Pan: Aaaty0284A] Vs. Yogakshema Trust .......... Respondent Keshava Smrithi, Chitra Lane, Aluva 683101

For Appellant: Shri Sanjit Kumar Das, CIT-DRFor Respondent: Ms. Krishna K., Advocate

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

case, 2 Yogakshema Trust 2. The Ld.CIT(A) erred in holding that as various courts have held, the AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 3. The Ld.CIT(A) failed to mention ... specific case laws relevant to this case/applicable to this issue by holding that.AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 4. The Ld.CIT(A) ignored the provisions of section

Sasikala Educational Trust, Madurai vs. ITO, Exemptions, Madurai

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

ITA 3342/CHNY/2024[2022-23]Status: DisposedITAT Chennai24 Mar 2025AY 2022-23

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri Jagadishआयकर अपील सं./Ita No.3342/Chny/2024 िनधा+रण वष+ /Assessment Year: 2022-23

For Appellant: The assessee is a trust filed its return of income for the AY-2022-23For Respondent: Shri Shivanand K Kalakeri, CIT

Section 11Section 12A(1)(b)Section 139(1)Section 143(1)Section 154Section 44A

DCIT (110 Taxmann.com 11) also supports the above conclusion. In this decision, Hon’ble Court has held that filing of Form No.10 for accumulation of income u/s 11(2) which was filed beyond due date could not disentitle the trust from exemption claimed u/s 11. The Hon’ble Court directed

Maharashtra Nursing Council, Mumbai vs. DCIT(Exemption)-2(1), Mumbai

In the result, all the appeals of the Assessee are allowed

ITA 554/MUM/2025[2017-18]Status: DisposedITAT Mumbai18 Mar 2025AY 2017-18

Bench: Shri Br Baskaran & Shri Narender Kumar Choudhry

For Appellant: Shri Nitesh Joshi, Ld. A.RFor Respondent: Shri R.R. Makwana, Ld. Sr. D.R

Section 11Section 11(2)Section 12ASection 147Section 271BSection 44A

reason that the Assessee did not comply with the provisions of section 11(2) of the Act for accumulation of income and hence there was an escapement of income. The AO completed the assessments of these years denying exemption u/s 11 of the Act. Since the Assessee was denied exemption