Section 10(23C) of the Income Tax Act

Income-tax Act, 2025: s.11

Section 10(23C) 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) is CIT v. State Bank of Bikaner & Jaipur (43 Taxmann.com 411), cited in 524 of the 713 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 is eligible for exemption under Section 10(23C)(vi) if it exists solely for educational purposes, even if it generates incidental profits. The mere existence of profit does not disqualify an institution from exemption.

Asstt. CIT v. Thanthi Trust
247 ITR 785 · 2001 · Supreme Court
98
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
81
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
81
citing judgments

Educational institutions are not commercial activities, and collecting fees for betterment and growth does not automatically disqualify them from being considered educational. Fees collected for value-added courses, training, or hostel facilities can be eligible for exemption under Section 11 if applied towards the institution's infrastructure.

Institute of Chartered Accountants of India (ICAI) v. DGIT (Exemptions)
358 ITR 91 · 2013 · High Court
80
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
61
citing judgments

Income received by a trust from sources like extra fees can be taxed at the maximum marginal rate, while other income remains eligible for exemption under Section 11 of the Income Tax Act.

Gujarat State Co-operative Union v. CIT
195 ITR 279 · 1992 · High Court
58
citing judgments

Education encompasses a broad range of activities beyond formal schooling, including systematic training designed to impart knowledge and skills, reflecting the acceptance of new ideas and the development of means to reach recipients. The definition of education should not be confined to a narrow or pedantic sense.

Bihar Institute of Mining & Mine Surveying v. CIT
208 ITR 608 · 1994 · High Court
57
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)

Debaguru Adarsha Bidyalaya Parichalana Committee, Mugamanda vs. Income Tax Officer, ITO Ward

In the result, appeal of the assessee stands partly allowed for statistical purposes

ITA 518/CTK/2024[2021-2022]Status: DisposedITAT Cuttack31 Dec 2024AY 2021-2022

Bench: Before Shri George Mathanmember & Manish Agarwal Manish Agarwalita No.518 /Ctk/2024 Assessment Year : 2021-22 Debaguru Adarsha Bidyalaya Debaguru Adarsha Bidyalaya Vs. Income Tax Officer, Ito Ward, Income Tax Officer, Ito Ward Parichalana Committiee Parichalana Committiee Khorda Mugamanda, Po: Narayanipada, Po: Narayanipada, Ps: Begunia , Khordha, 752062 Khordha, 752062 Pan/Gir No.Aadtd 7196 F Aadtd 7196 F (Appellant) (Appellant .. ( Respondent Respondent) Assessee By Assessee By : Shri Natabar Panda, Dr Sanjay Kumar Behura & Dr Sanjay Kumar Behura & Ananta Narayan Singhbabu, Advs Revenue By : Shri S.C.Mohanty, Sr Dr : Shri S.C.Mohanty, Sr Dr Date Of Hearing : 31/12/20 2024 Date Of Pronouncement : 31/12/20 024 O R D E R Per Bench This Is An This Is An Appeal Filed By The Assessee Against The Order Of The Ld Against The Order Of The Ld Addl/Jcit(A)-4, Kolkata 4, Kolkata Dated 3.7.2024 In Appeal No.Addl/Jcit(A) 3.7.2024 In Appeal No.Addl/Jcit(A)- 4,Kolkata/10003/220 4,Kolkata/10003/220-2021 For The Assessment Year 2021-22. 22. 2. The Assessee Has Raised The Following Grounds Of Appeal: The Assessee Has Raised The Following Grounds Of Appeal: The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Natabar Panda, Dr Sanjay Kumar Behura and Dr Sanjay Kumar Behura and AnantaFor Respondent: Shri S.C.Mohanty, Sr DR
Section 10Section 12ASection 250

Modella Caretaker Centre, Siliguri vs. ACIT(OSD), Ward-2(1), Siliguri

In the result, all the captioned appeals of the assessee are allowed for statistical purposes

ITA 300/KOL/2024[2014-15]Status: DisposedITAT Kolkata23 Dec 2024AY 2014-15

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.137, 170, 271 & 300/Kol/2024 Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 Modella Caretaker Centre….. ……..……………………....Appellant 27, Church Road, Siliguri-734001. [Pan: Aabtm0003G] Vs. Acit(Osd), Ward-2(1), Siliguri……................................…..…..... Respondent Appearances By: Shri Rip Das, Ar, Appeared On Behalf Of The Appellant. Shri S. B. Chakraborthy, Addl. Cit & Somnath Das, Sr. Drs, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2024 Date Of Pronouncing The Order : December 23, 2024 आदेश / Order Per Sonjoy Sarma: The Captioned Appeals Filed By The Assessee Against The Order Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Pertaining To Four Assessment Years I.E 2011-12, 2012-13, 2013- 14 & 2014-15 Respectively. Since, The Issues Involved In All These Appeals Arise From Common Set Of Facts Except Difference In Figures & Related To Same Party, Therefore, These Have Been Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience, Brevity & Clarity. The First Appeal Being

Section 10Section 12ASection 143(2)Section 147Section 148Section 151Section 250Section 40A(2)(a)

Modella Caretaker Centre, Siliguri vs. ACIT(OSD), Ward-2(1), Siliguri

In the result, all the captioned appeals of the assessee are allowed for statistical purposes

ITA 271/KOL/2024[2013-14]Status: DisposedITAT Kolkata23 Dec 2024AY 2013-14

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.137, 170, 271 & 300/Kol/2024 Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 Modella Caretaker Centre….. ……..……………………....Appellant 27, Church Road, Siliguri-734001. [Pan: Aabtm0003G] Vs. Acit(Osd), Ward-2(1), Siliguri……................................…..…..... Respondent Appearances By: Shri Rip Das, Ar, Appeared On Behalf Of The Appellant. Shri S. B. Chakraborthy, Addl. Cit & Somnath Das, Sr. Drs, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2024 Date Of Pronouncing The Order : December 23, 2024 आदेश / Order Per Sonjoy Sarma: The Captioned Appeals Filed By The Assessee Against The Order Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Pertaining To Four Assessment Years I.E 2011-12, 2012-13, 2013- 14 & 2014-15 Respectively. Since, The Issues Involved In All These Appeals Arise From Common Set Of Facts Except Difference In Figures & Related To Same Party, Therefore, These Have Been Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience, Brevity & Clarity. The First Appeal Being

Section 10Section 12ASection 143(2)Section 147Section 148Section 151Section 250Section 40A(2)(a)

Modella Care Taker Centre, Siliguri vs. ACIT(OSD), Ward-2(1), Siliguri

In the result, all the captioned appeals of the assessee are allowed for statistical purposes

ITA 170/KOL/2024[2012-13]Status: DisposedITAT Kolkata23 Dec 2024AY 2012-13

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.137, 170, 271 & 300/Kol/2024 Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 Modella Caretaker Centre….. ……..……………………....Appellant 27, Church Road, Siliguri-734001. [Pan: Aabtm0003G] Vs. Acit(Osd), Ward-2(1), Siliguri……................................…..…..... Respondent Appearances By: Shri Rip Das, Ar, Appeared On Behalf Of The Appellant. Shri S. B. Chakraborthy, Addl. Cit & Somnath Das, Sr. Drs, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2024 Date Of Pronouncing The Order : December 23, 2024 आदेश / Order Per Sonjoy Sarma: The Captioned Appeals Filed By The Assessee Against The Order Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Pertaining To Four Assessment Years I.E 2011-12, 2012-13, 2013- 14 & 2014-15 Respectively. Since, The Issues Involved In All These Appeals Arise From Common Set Of Facts Except Difference In Figures & Related To Same Party, Therefore, These Have Been Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience, Brevity & Clarity. The First Appeal Being

Section 10Section 12ASection 143(2)Section 147Section 148Section 151Section 250Section 40A(2)(a)

Modella Caretaker Centre, Siliguri vs. ACIT(OSD), Ward-2(1), Siliguri

In the result, all the captioned appeals of the assessee are allowed for statistical purposes

ITA 137/KOL/2024[2011-12]Status: DisposedITAT Kolkata23 Dec 2024AY 2011-12

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.137, 170, 271 & 300/Kol/2024 Assessment Years: 2011-12, 2012-13, 2013-14 & 2014-15 Modella Caretaker Centre….. ……..……………………....Appellant 27, Church Road, Siliguri-734001. [Pan: Aabtm0003G] Vs. Acit(Osd), Ward-2(1), Siliguri……................................…..…..... Respondent Appearances By: Shri Rip Das, Ar, Appeared On Behalf Of The Appellant. Shri S. B. Chakraborthy, Addl. Cit & Somnath Das, Sr. Drs, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2024 Date Of Pronouncing The Order : December 23, 2024 आदेश / Order Per Sonjoy Sarma: The Captioned Appeals Filed By The Assessee Against The Order Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Pertaining To Four Assessment Years I.E 2011-12, 2012-13, 2013- 14 & 2014-15 Respectively. Since, The Issues Involved In All These Appeals Arise From Common Set Of Facts Except Difference In Figures & Related To Same Party, Therefore, These Have Been Heard Together & Are Being Disposed Of By This Consolidated Order For The Sake Of Convenience, Brevity & Clarity. The First Appeal Being

Section 10Section 12ASection 143(2)Section 147Section 148Section 151Section 250Section 40A(2)(a)