How many judgments are there on Section 10(23C)?

BharatTax indexes 426 ITAT, High Court and Supreme Court judgments that turn on Section 10(23C) of the Income Tax Act, 1961.

Section 10(23C) of the Income Tax Act

Q: What is the leading case on Section 10(23C) of the Income Tax Act?

CIT v. State Bank of Bikaner & Jaipur (43 Taxmann.com 411) is the decision most relied on for Section 10(23C), cited in 524 judgments. Employee contributions to provident fund, ESI, and other welfare funds, if deposited by the due date for furnishing the return of income under Section 139(1), are allowable as a deduction and cannot be disallowed under Section 36(1)(va) read with Section 2(24)(x) or Section 43B, even if deposited after the due date prescribed by the respective welfare Acts.

Q: Which cases are most cited on Section 10(23C)?

CIT v. State Bank of Bikaner & Jaipur (43 Taxmann.com 411) — 524 citing judgments; CIT v. Tiny Tots Education Society (330 ITR 21) — 112 citing judgments; American Hotel and Lodging Association Educational Institute v. CBDT (301 ITR 86) — 111 citing judgments; Asstt. CIT v. Thanthi Trust (247 ITR 785) — 98 citing judgments; Yuvraj v. Union of India (315 ITR 84) — 81 citing judgments.

The decision most relied on for Section 10(23C) is CIT v. State Bank of Bikaner & Jaipur (43 Taxmann.com 411), cited in 524 of the 426 judgments on BharatTax that turn on this section.

Leading authorities on Section 10(23C)

CIT v. State Bank of Bikaner & Jaipur

43 Taxmann.com 411 · 2014 · High Court

524

citing judgments

Employee contributions to provident fund, ESI, and other welfare funds, if deposited by the due date for furnishing the return of income under Section 139(1), are allowable as a deduction and cannot be disallowed under Section 36(1)(va) read with Section 2(24)(x) or Section 43B, even if deposited after the due date prescribed by the respective welfare Acts.

CIT v. Tiny Tots Education Society

330 ITR 21 · 2011 · High Court

112

citing judgments

Charitable institutions are entitled to claim depreciation on assets even when the cost of acquisition has already been treated as an application of income for exemption purposes, as this does not constitute a double deduction.

American Hotel and Lodging Association Educational Institute v. CBDT

301 ITR 86 · 2008 · Supreme Court

111

citing judgments

An educational institution's generation of profit from its activities does not automatically negate its status of existing 'solely for education purposes' for income tax exemption. The primary purpose must remain education, even if a surplus is generated.

Asstt. CIT v. Thanthi Trust

247 ITR 785 · 2001 · Supreme Court

citing judgments

A charitable trust can earn income from business activities under Section 11(4A), including incidental businesses, and still claim exemption under Section 11, provided the income is applied towards its charitable objects. Generating a surplus from such activities does not automatically negate the charitable purpose.

Yuvraj v. Union of India

315 ITR 84 · 2009 · High Court

citing judgments

Reassessment under Section 148 is valid and does not constitute a mere change of opinion if the original assessment order demonstrates no application of mind to a specific issue, such as the assessability of capital gains or casual income. In such cases, the Assessing Officer is justified in issuing a notice under Section 148 to address the unexamined income escapement.

T.M.A. Pai Foundation v. State of Karnataka

8 SCC 481 · 2002 · Reported

citing judgments

An educational institution collecting fees does not make it a non-educational activity under Section 2(15) of the Income-tax Act. The Supreme Court recognized the necessity for educational institutions to generate funds for their betterment and growth.

Institute of Chartered Accountants of India (ICAI) v. DGIT (Exemptions)

358 ITR 91 · 2013 · High Court

citing judgments

An institution carrying out charitable objects, such as education or advancement of general public utility, does not lose its Section 11 exemption merely by collecting fees for activities like campus placements or educational guidance, as this does not constitute carrying on a business.

Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu (

172 ITR 698 · 1988 · High Court

citing judgments

For a charitable trust to claim application of income under Section 11(1)(a) by donating to another trust, the donee trust must be registered. Donations to unregistered institutions do not constitute an application of income for the donor trust, even if intended for the donee's corpus.

Gujarat State Co-operative Union v. CIT

195 ITR 279 · 1992 · High Court

citing judgments

Income derived from activities for the advancement of general public utility should not be treated as business income, thereby sustaining an assessee's claim for exemption under the Income-tax Act.

Bihar Institute of Mining & Mine Surveying v. CIT

208 ITR 608 · 1994 · High Court

citing judgments

An entity qualifies as an 'educational institution' under Section 10(22) of the Income-tax Act only if it is primarily engaged in imparting education, rather than merely assisting educational bodies or providing scholarships and grants. The focus must be on active educational activities.

Judgments on Section 10(23C)

KARSANDAS KALABHAI THAKKAR PUBLIC CHARITABLE TRUST,JAMNAGAR vs. CIT(EXEMPTION), AHMEDABAD

In the result, all appeals ITA No

ITA 16/RJT/2026[2026-27]Status: DisposedITAT Rajkot17 Apr 2026AY 2026-27

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकरअपीलसं./Ita No.16/Rjt/2026 ("नधा"रणवष"/Assessment Year: (2026-27) Karsandas Kalabhai Thakkar Public Cit (Exemption) Charitable Trust, Vs. Room No.609, Floor-6, Aayakar Bhawan At Mauvan, Taluka Khambhalia, (Vejalpur), Nr. Sachin Tower, 100 Foot Dist- Jamnagar, Gujarat- 361001 Road, Anandnagar-Prahladnagar Road, Ahmedabad, Gujarat, 380015, Ahmedabad. "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaatk1903A (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Darshak Thakkar, Ld. Ar : Shri Sanjay Punglia, Ld. Cit Dr Respondent By आयकरअपीलसं./Ita No. 41/Rjt/2026 ("नधा"रणवष"/Assessment Year: (2026-27) Mpsmc Alumni Scholarship Fund & Cit (Exemption) Foundation, Ahmedabad, Gujarat, 380001. Samarpan Panchvati Main Road, Opp. Vs. Shrinathji Tower, Panchvati, Rajkot, Gujarat 360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aahtm6187H (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Ms. Manalee N. Kamdar, Ld. Ar Respondent By : Shri Sanjay Punglia, Ld. Cit Dr

For Appellant: Shri Darshak Thakkar, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT DR

Section 12A

PU SHREE RANCHHODDASJIBAPU PUBLIC CHERITABLE TRUST,RAJKOT vs. CIT(EXEMPTION), AHMEDABAD

In the result, all appeals ITA No

ITA 868/RJT/2025[2025-26]Status: DisposedITAT Rajkot17 Apr 2026AY 2025-26

For Appellant: Shri Darshak Thakkar, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT DR

Section 12A

SHRI BALWANT SINGH PUBLIC SCHOOL SAMITI,HATHRAS vs. ITO WARD 4(3)(4), HATHRAS, HATHRAS

In the result, the appeal of the Assessee is allowed

ITA 94/AGR/2026[20222-23]Status: DisposedITAT Agra02 Apr 2026

Bench: Shri M. Balaganesh & Shri Sunil Kumar Singhshri Balwant Singh Vs. Ito, Public School Samiti, Ward-4(2)(4), Sikandra Rao Road, Hathras Salempur, Sasni, Hathras, (Appellant) (Respondent) Pan: Aaajs4970P Assessee By : Shri Pankaj Garh, Adv Revenue By: Shri Shailendra Srivastava, Sr. Dr Date Of Hearing 19/03/2026 Date Of Pronouncement 02/04/2026

For Appellant: Shri Pankaj Garh, AdvFor Respondent: Shri Shailendra Srivastava, Sr. DR

Section 10Section 11(1)(a)Section 12ASection 143(1)Section 154Section 154(3)

GITA EDUCATIONAL TRUST,DELHI vs. AO WARD EXEMPTION (2), DELHI

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

ITA 5194/DEL/2025[2018-19]Status: DisposedITAT Delhi18 Mar 2026AY 2018-19

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahmana.Yr. : 2018-19 Gita Educational Trust, Vs. Ao Ward Exemption (2), 278, Kailash Hills, Kailash Civic Centre, New Delhi Colony, Delhi – 110 028 (Pan: Aaatg3902B)

For Appellant: NoneFor Respondent: Ms. Ankush Kalra, Sr. DR

Section 10Section 11Section 12ASection 143(1)

MEHAR PALLIATIVE CARE TRUST,AHILYANAGAR vs. CIT(E) , NASHIK

In the result, the appeal of the assessee is allowed

ITA 217/PUN/2026[2020-21]Status: DisposedITAT Pune13 Mar 2026AY 2020-21

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.217/Pun/2026 Assessment Year : 2020-21 Meher Palliative Care Trust, Vs. Cit (Exemption), Plot No.1, Gat 515/1/1, Nashik Behind Stone Terrace Cond. Post Meherabad Arangaon, Tal Dist. Ahilyanagar – 414001 Maharashtra Pan : Aaetm1969Q Appellant Respondent

For Appellant: Shri Prasad BhandariFor Respondent: Shri Dayanand Jawalikar

Section 10Section 10(23)(iiiae)Section 143(2)Section 143(3)

ROONGTA WELFARE FOUNDATION,SURAT vs. CIT(EXEMPTION),AHEMDABAD, AHEMDABAD

The appeal of the assessee is allowed for statistical purposes

ITA 228/AHD/2026[NA]Status: DisposedITAT Ahmedabad12 Mar 2026

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri Rasesh Shah, ARFor Respondent: Shri Alpesh Parmar, CIT DR

Section 10Section 12ASection 80GSection 80G(5)Section 80G(5)(ii)Section 80G(5)(iii)

THE BOMBAY HINDU BURNING AND BURIAL GROUNDS COMMITTEE,MUMBAI vs. ITO EXE WARD 2(4), MUMBAI

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

ITA 9324/MUM/2025[2018-19]Status: DisposedITAT Mumbai11 Mar 2026AY 2018-19

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

Section 10Section 11Section 12ASection 143(1)Section 143(1)(a)Section 154Section 254(1)

SHRI GANDHI MAULANA AZAD SHRAMJIVI ASHRA,KUTCH vs. INCOME TAX OFFICER, EXEMPTION WARD 1, RAJKOT, RAJKOT

In the result, appeals of the assessee, are allowed

ITA 612/RJT/2025[2016-17]Status: DisposedITAT Rajkot10 Mar 2026AY 2016-17

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

For Appellant: Shri Kalpesh Doshi, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR

Section 10Section 10(23)(iiia)Section 11Section 139Section 142(1)Section 145(3)Section 147Section 148Section 148ASection 149(1)(b)

DEPUTY COMMISSIONER OF INCOME TAX, YAMUNANAGAR vs. M/S THE VED PARKASH MUKAND LAL, YAMUNANAGAR

In the result, the assessee’s appeals, for both the years, stand dismissed

ITA 833/CHANDI/2014[2005-06]Status: DisposedITAT Chandigarh10 Mar 2026AY 2005-06

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकर अपील सं. / Ita No.824/Chandi/2014 (िनधा"रण वष" / Assessment Year: 2005-06) & 2. आयकर अपील सं. / Ita No.825/Chandi/2014 (िनधा"रण वष" / Assessment Year: 2006-07) The Ved Prakash Mukand Lal Dcit Educational Society Circle Yamuna Nagar बनाम/ Vs. (Radaur, Yamuna Nagar) Haryana C/O Shri Tej Mohan Singh (Advocate) #527, Sector – 10D, Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatv-4812-B (अपीलाथ"/Appellant) (""थ" / Respondent) : & 3. आयकर अपील सं. / Ita No.833/Chandi/2014 (िनधा"रण वष" / Assessment Year: 2005-06) & 4. आयकर अपील सं. / Ita No.832/Chandi/2014 (िनधा"रण वष" / Assessment Year: 2006-07) Dcit The Ved Prakash Mukand Lal Circle Yamuna Nagar Educational Society बनाम/ Haryana (Radaur, Yamuna Nagar) Vs. C/O Shri Tej Mohan Singh (Advocate) #527, Sector – 10D, Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatv-4812-B (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Sh. Tejmohan Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Smt. Yamini (Cit) - Ld. Dr (Virtual)

For Appellant: Sh. Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Smt. Yamini (CIT) - Ld. DR (Virtual)

Section 11Section 11(2)Section 11(5)Section 12ASection 143(1)Section 143(3)Section 147

DCIT vs. M/S THE VED PARKASH MUKAND LAL, YAMUNANAGAR

In the result, the assessee’s appeals, for both the years, stand dismissed

ITA 832/CHANDI/2014[2006-07]Status: DisposedITAT Chandigarh10 Mar 2026AY 2006-07

For Appellant: Sh. Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Smt. Yamini (CIT) - Ld. DR (Virtual)

Section 11Section 11(2)Section 11(5)Section 12ASection 143(1)Section 143(3)Section 147

CHIMANLAL MODI CHARITABLE TRUST,MEHSANA vs. CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

In the result, the appeal filed by the assessee in ITA No

ITA 2521/AHD/2025[NOT APPLICABLE]Status: DisposedITAT Ahmedabad10 Mar 2026

Bench: Six Months From The Date Of Commencement Of The Activities, Which Was Further Extended By Cbdt Circular No. 7 Of 2024 Up To 30-06- 2024 But The Assessee Trust Had Not Filed Any Reason For Delay In Filing Such Application. Therefore Ld. Cit(E) Denied The Registration By Observing That The Application Is Filed Belatedly.

Section 12ASection 12A(1)(ac)Section 80G