Section 10(23C)(iv) of the Income Tax Act
Income-tax Act, 2025: s.11
Section 10(23C)(iv) falls under section 10 of the Income-tax Act, 1961, which corresponds to section 11 (Incomes not included in total income) of the Income-tax Act, 2025.
Read section 11 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 10(23C)(iv) is Escorts Ltd. v. UOI (199 ITR 43), cited in 267 of the 149 judgments on BharatTax that turn on this section.
Leading authorities on Section 10(23C)(iv)
A statute should not be construed to permit double deduction for the same expenditure unless specifically provided by law.
A charitable trust can claim depreciation on assets when computing the income applied for charitable or religious purposes under Section 11 of the Income Tax Act, for assessment years prior to the introduction of Section 11(6). The restriction on claiming depreciation, as introduced by Section 11(6), is prospective from AY 2015-16.
The proviso to Section 12A(2) of the Income-tax Act, 1961, introduced by the Finance Act, 2014, is declaratory and has retrospective effect, allowing registration under Section 12AA during pending assessment proceedings to claim exemptions for earlier years. Reassessment proceedings under Section 147 should not be initiated solely for the non-registration of a trust.
Activities of a sovereign nature, executed as an arm of the government and under its direct control, cannot be classified as business activities, even if they relate to trade or commerce. Such activities are considered for general public utility.
