Section 11(1)(a) of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 11(1)(a) falls under section 11 of the Income-tax Act, 1961, which corresponds to sections 332 to 355 of the Income-tax Act, 2025, the provisions on registered non-profit organisations.

Read the 2025 provisions

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 11(1)(a) is CIT v. Institute of Banking Personnel Selection (264 ITR 110), cited in 398 of the 553 judgments on BharatTax that turn on this section.

Leading authorities on Section 11(1)(a)

CIT v. Institute of Banking Personnel Selection
264 ITR 110 · 2003 · High Court
398
citing judgments

Depreciation is allowable on assets for which the cost has been fully allowed as an application of income under Section 11 in previous years, when computing the income of a charitable trust. Charitable trusts are also entitled to carry forward their deficit.

Sole Trustee, Loka Shikshana Trust v. CIT
101 ITR 234 · 1975 · Supreme Court
323
citing judgments

This case defines 'education' under Section 2(15) of the Income Tax Act as systematic instruction, schooling, or training given to the young for preparation for the work of life. It clarifies that 'education' in this context has a narrow meaning, not extending to every acquisition of further knowledge.

Escorts Ltd. v. UOI
199 ITR 43 · 1993 · Supreme Court
267
citing judgments

A statute should not be construed to permit double deduction for the same expenditure unless specifically provided by law.

CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal
211 ITR 293 · 1995 · High Court
204
citing judgments

A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.

Munjal Sales Corporation v. CIT
298 ITR 298 · 2008 · Supreme Court
191
citing judgments

The Supreme Court approves the mixed fund theory, holding that no interest disallowance is warranted under section 36(1)(iii) if investments or advances are made from the assessee's own non-interest bearing funds, even when mixed funds are available. This presumption applies when non-interest bearing funds are sufficient to meet the investments.

CIT v. Maharana of Mewar Charitable Foundation
164 ITR 439 · 1987 · High Court
153
citing judgments

For charitable trusts, the set-off of excess expenditure from prior years against the income of a subsequent year is considered an application of income for charitable purposes. Similarly, the repayment of loans borrowed for legitimate charitable activities is also treated as an application of income.

CIT v. Market Committee, Pipli
330 ITR 16 · 2011 · High Court
113
citing judgments

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.

Ahmedabad Urban Development Authority v. ACIT
396 ITR 323 · 2017 · High Court
108
citing judgments

Development authorities can continue to be regarded as existing for a 'Charitable Purpose' under Section 2(15) of the Income Tax Act, even after the introduction of the proviso to that section. The contention that such authorities automatically lose their charitable status due to the proviso is incorrect.

Khatau Junkar Ltd. v. K S Pathania
196 ITR 55 · 1992 · High Court
103
citing judgments

A claim made by an assessee which requires further inquiry cannot be disallowed under section 143(1)(a)(iii) without giving the assessee an opportunity to be heard and submit supporting proof. The phrase 'prima facie inadmissible' means the claim is not admissible on the face of it and does not require further inquiry for disallowance.

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.

Judgments on Section 11(1)(a)

Deputy Commissioner of Income-Tax, (Exemption), Circle, Pune vs. Maharashtra Education Society, Pune

In the result, the appeal filed by the Revenue stands allowed

ITA 1577/PUN/2019[2015-16]Status: DisposedITAT Pune05 Dec 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.1408/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Maharashtra Education Vs. Dcit (Exemption), Pune. Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune-411030. Pan : Aaatm1730E Appellant Respondent आयकर अपील सं. / Ita No.1577/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit (Exemption), Pune. Vs. Maharashtra Education Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune- 411030. Pan : Aaatm1730E Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 24.11.2022 Date Of Pronouncement : 05.12.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Cross Appeals Filed By The Assessee As Well As By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16. Ita No.1408/Pun/2019 – By Assessee : 2. During Course Of Hearing, The Ld. Ar Did Not Press Grounds Of Appeal. Therefore, We Dismiss The Appeal Of The Assessee As Not Pressed. 3. In The Result, The Appeal Of The Assessee Stands Dismissed.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 11(1)(a)Section 12ASection 143(3)

Maharashtra Education Society (Mes), Pune vs. Deputy Commissioner of Income-Tax, (Exemption), Pune

In the result, the appeal filed by the Revenue stands allowed

ITA 1408/PUN/2019[2015-16]Status: DisposedITAT Pune05 Dec 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.1408/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Maharashtra Education Vs. Dcit (Exemption), Pune. Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune-411030. Pan : Aaatm1730E Appellant Respondent आयकर अपील सं. / Ita No.1577/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit (Exemption), Pune. Vs. Maharashtra Education Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune- 411030. Pan : Aaatm1730E Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 24.11.2022 Date Of Pronouncement : 05.12.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Cross Appeals Filed By The Assessee As Well As By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16. Ita No.1408/Pun/2019 – By Assessee : 2. During Course Of Hearing, The Ld. Ar Did Not Press Grounds Of Appeal. Therefore, We Dismiss The Appeal Of The Assessee As Not Pressed. 3. In The Result, The Appeal Of The Assessee Stands Dismissed.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 11(1)(a)Section 12ASection 143(3)

Deputy Commissioner of Income-Tax, (Exemption), Circle, Pune vs. National Center for Cell Science, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1579/PUN/2019[2015-16]Status: DisposedITAT Pune26 Sept 2022AY 2015-16

Bench: Shri S. S. Godara & Shri Inturi Rama Raoआयकर अपील सं. / Ita No.1578/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit, (Exemption) Circle, Vs. K.E.M. Hospital Pune. Society, 489, Sardar Moodliar Road, Rasta Peth, Pune- 411011. Pan : Aaatk8155E Appellant Respondent आयकर अपील सं. / Ita No.1579/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit, (Exemption) Circle, Vs. National Center For Cell Pune. Science, Nccs Campus, Pune University Road, Ganeshkhind, Pune- 411007. Pan : Aaatn0848B Appellant Respondent Revenue By : Shri B. Koteswararao Assessee By : Shri Nikhil Pathak Date Of Hearing : 08.09.2022 Date Of Pronouncement : 26.09.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Appeals Filed By The Revenue Directed Against The Separate Orders Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16 Respectively. 2. Since The Identical Facts & Common Issues Are Involved In Both The Above Captioned Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1578/Pun/2019 For The Assessment Year 2015-16 Are Stated Herein.

For Appellant: Shri Nikhil PathakFor Respondent: Shri B. Koteswararao
Section 12ASection 143(3)

Deputy Commissioner of Income-Tax, (Exemption), Circle, Pune vs. K.E.M Hospital Society, Pune

In the result, the appeal filed by the Revenue in ITA

ITA 1578/PUN/2019[2015-16]Status: DisposedITAT Pune26 Sept 2022AY 2015-16

Bench: Shri S. S. Godara & Shri Inturi Rama Raoआयकर अपील सं. / Ita No.1578/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit, (Exemption) Circle, Vs. K.E.M. Hospital Pune. Society, 489, Sardar Moodliar Road, Rasta Peth, Pune- 411011. Pan : Aaatk8155E Appellant Respondent आयकर अपील सं. / Ita No.1579/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit, (Exemption) Circle, Vs. National Center For Cell Pune. Science, Nccs Campus, Pune University Road, Ganeshkhind, Pune- 411007. Pan : Aaatn0848B Appellant Respondent Revenue By : Shri B. Koteswararao Assessee By : Shri Nikhil Pathak Date Of Hearing : 08.09.2022 Date Of Pronouncement : 26.09.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Appeals Filed By The Revenue Directed Against The Separate Orders Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16 Respectively. 2. Since The Identical Facts & Common Issues Are Involved In Both The Above Captioned Appeals, We Proceed To Dispose Of The Same By This Common Order. 3. For The Sake Of Convenience & Clarity, The Facts Relevant To The Appeal In Ita No.1578/Pun/2019 For The Assessment Year 2015-16 Are Stated Herein.

For Appellant: Shri Nikhil PathakFor Respondent: Shri B. Koteswararao
Section 12ASection 143(3)

Dy Commissioner of Income Tax, Central Circle-5(3), Mumbai-400021 vs. Board of Examination for Seafares Trust, Navi Mumbai

In the result, the appeal filed by the revenue stands dismissed

ITA 1163/MUM/2022[2017-18]Status: DisposedITAT Mumbai08 Aug 2022AY 2017-18

Bench: Shri Amit Shukla, Jm & Shri Amarjit Singh, Am आयकरअपीलसं./ I.T.A. No. 1163/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2017-18) Board Of Examination Dcit-Cc – 5(3), For Seafarers Trust R. No. 1906, 19Th Floor, Air बिधम/ Plot 94, Imei House, India Building, Nariman Vs. Sector 19, Nerul, Navi Point, Mumbai-400 021 Mumbai-400 706 स्थायीलेखासं./जीआइआरसं./ Pan No. Aabtb1052C (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Shri Chetan M. Kacha, Ld. Dr प्रत्यथीकीओरसे/Respondent By : Shri Karthik Natarajan, Ld. Ar सुनवाईकीतारीख/ : 08.08.2022 Date Of Hearing घोषणाकीतारीख / : 08.08.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeal Has Been Filed By The Revenue Against The Impugned Order Dated 24.12.2021, Passed By Ld. Cit(A)-53, Mumbai For The Quantum Of Assessment Passed U/S 143(3) For Ay 2017-18. The Revenue Has Taken The Following Grounds Of Appeal:-

For Appellant: Shri Chetan M. KachaFor Respondent: Shri Karthik Natarajan
Section 11(1)Section 11(2)Section 12ASection 143(3)