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)

Mother Educational Charitable Trust, Bhubaneswar vs. CIT(Exemption), Hyderabad

In the result, appeal filed by the assessee is dismissed as withdrawn

ITA 223/CTK/2020[2019-20]Status: DisposedITAT Cuttack11 Mar 2022AY 2019-20

Bench: S/ S/Shri Chandra Mohan Garg, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2019-2020 2020 Mother Educational Charitable Trust, Mother Educational Charitable Trust, Vs Cit (Exemption), Hyderabad Cit (Exemption), Hyderabad Plot Plot No.1207, No.1207, Tankapani Tankapani Road, Road, . Badagada, Bhubaneswar Badagada, Bhubaneswar Pan/Gir No. No.Aactm 9541 Q (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri Sunil Mishra Sunil Mishra, Ar Revenue By : Shri M.K.Goutam, Cit ( Cit (Dr) Date Of Hearing : 11/3/ 20 / 2022 Date Of Pronouncement : 11 / /3/2022 O R D E R Per C.M.Garg G, Jm This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Order Of The Cit(E), Hyderabad Dated 17.8.2020 Cit(E), Hyderabad Dated 17.8.2020 For The Assessment Year For The Assessment Year 2019-20. 2. Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Already Availed Regi Already Availed Registration U/S.10(23C) Of The Act, To Which, Ld Cit Dr Did 23C) Of The Act, To Which, Ld Cit Dr Did Not Have Any Objection. Not Have Any Objection. 3. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn.

For Appellant: Shri Sunil MishraFor Respondent: Shri M.K.Goutam, CIT (
Section 10

Satya Sai Seva Sangh, Bhubaneswar vs. CIT(Exemption), Hyderabad

In the result, appeal filed by the assessee is dismissed as withdrawn

ITA 222/CTK/2020[2019-20]Status: DisposedITAT Cuttack11 Mar 2022AY 2019-20

Bench: S/ S/Shri Chandra Mohan Garg, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2019-2020 2020 Satya Sai Seva Sangh, Satya Sai Seva Sangh, Vs Cit (Exemption), Hyderabad Cit (Exemption), Hyderabad 59, Satya Sai Seva Sangh, Khandagiri 59, Satya Sai Seva Sangh, Khandagiri . Area, Tapovan, Bhubaneswar. Area, Tapovan, Bhubaneswar. Pan/Gir No. No.Aalas 8638 J (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri Sunil Mishra Sunil Mishra, Ar Revenue By : Shri M.K.Goutam, Cit ( Cit (Dr) Date Of Hearing : 11/3/ 20 / 2022 Date Of Pronouncement : 11 / /3/2022 O R D E R Per C.M.Garg G, Jm This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Order Of The Cit(E), Hyderabad Dated 17.8.2020 Cit(E), Hyderabad Dated 17.8.2020 For The Assessment Year For The Assessment Year 2019-20. 2. Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Already Availed Registration U/S.10923C) Of The Act, To Which, Ld Cit Dr Did Already Availed Registration U/S.10923C) Of The Act, To Which, Ld Cit Dr Did Already Availed Registration U/S.10923C) Of The Act, To Which, Ld Cit Dr Did Not Have Any Objection. Not Have Any Objection. 3. In The Resu In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn. Lt, Appeal Filed By The Assessee Is Dismissed As Withdrawn.

For Appellant: Shri Sunil MishraFor Respondent: Shri M.K.Goutam, CIT (
Section 109

Dayananda Arya Vedic Public School, Bhubaneswar vs. CIT, Exemption, Hederabad

In the result, appeal filed by the assessee is dismissed as withdrawn

ITA 221/CTK/2020[2019-20]Status: DisposedITAT Cuttack11 Mar 2022AY 2019-20

Bench: S/ S/Shri Chandra Mohan Garg, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2019-2020 2020 Dayananda Arya Vedic Public School, Dayananda Arya Vedic Public School, Vs Cit (Exemption), Hyderabad Cit (Exemption), Hyderabad Sishupalgarh, Sishupalgarh, Puri Puri Road, Road, . Bhubaneswar. Bhubaneswar. Pan/Gir No. No.Aactm 9541 Q (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri Sunil Mishra Sunil Mishra, Ar Revenue By : Shri M.K.Goutam, Cit ( Cit (Dr) Date Of Hearing : 11/3/ 20 / 2022 Date Of Pronouncement : 11 / /3/2022 O R D E R Per C.M.Garg G, Jm This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Or This Is An Appeal Filed By The Assessee Against The Order Of The Cit(E), Hyderabad Dated 17.8.2020 Cit(E), Hyderabad Dated 17.8.2020 For The Assessment Year For The Assessment Year 2019-20. 2. Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Vide Petition Dated 11.3.2022, The Assessee Sought To Withdraw The Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Appeal Filed Before The Tribunal On The Ground That The Assessee Has Already Availed Regi Already Availed Registration U/S.10(23C) Of The Act, To Which, Ld Cit Dr Did 23C) Of The Act, To Which, Ld Cit Dr Did Not Have Any Objection. Not Have Any Objection. 3. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn. In The Result, Appeal Filed By The Assessee Is Dismissed As Withdrawn.

For Appellant: Shri Sunil MishraFor Respondent: Shri M.K.Goutam, CIT (
Section 10