Section 11 of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 11 of the Income-tax Act, 1961 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 is Ashok Pai v. CIT (292 ITR 11), cited in 812 of the 7,190 judgments on BharatTax that turn on this section.

Leading authorities on Section 11

Ashok Pai v. CIT
292 ITR 11 · 2007 · Supreme Court
812
citing judgments

“Concealment of particulars of income” and “furnishing inaccurate particulars of income” are two distinct offences under Section 271(1)(c) of the Income Tax Act. A penalty cannot be levied under one limb if the show cause notice or basis for penalty specifies the other, as this constitutes a complete variance in the reasons for assuming jurisdiction.

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. 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.

ACIT v. Ahmedabad Urban Development Authority
143 Taxmann.com 278 · 2022 · Supreme Court
390
citing judgments

If activities for the advancement of general public utility are carried on as a business, income from such activities is not exempt under Section 11, even if the profits are utilized for the main charitable object. The argument that profits from general public utility activities can be ploughed back to charity to maintain exemption is not a good law.

Addl. CIT v. Surat Art Silk Cloth Manufacturers Association
121 ITR 1 · 1980 · Supreme Court
328
citing judgments

A charitable institution, whose predominant object is general public utility, can engage in non-charitable activities yielding incidental profits, provided these profits are deployed to achieve the dominant charitable object. A subsidiary object, if ancillary to the primary charitable purpose, does not negate the institution's charitable character.

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.

Exide Industries Ltd. v. Union of India
292 ITR 470 · 2007 · High Court
320
citing judgments

The Calcutta High Court held that restricting deduction for leave encashment via Section 43B(f) was arbitrary and contrary to Supreme Court decisions. However, this judgment was later stayed by the Supreme Court.

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.

K.C. Builders & Anr. v. ACIT
265 ITR 562 · 2004 · Supreme Court
241
citing judgments

When the addition made in the assessment order, on the basis of which a penalty for concealment under section 271(1)(c) is levied, is subsequently deleted, the penalty has no basis and must be cancelled.

Indian Molasses Co. Pvt. Ltd. v. CIT
37 ITR 66 · 1959 · Supreme Court
206
citing judgments

Expenditure is defined as money paid out or away, which is gone irretrievably. To be deductible under Section 37(1), expenditure must be wholly and exclusively for business, not capital or personal, and not fall under specific provisions of Sections 30 to 36, often justifiable on grounds of commercial expediency.

Judgments on Section 11

M/S. Munnilal & Dhuridevi Baid Charitable Trust, Kolkata vs. ITO (Exemption), Ward - 1(4), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1500/KOL/2018[2016-17]Status: DisposedITAT Kolkata31 Oct 2018AY 2016-17

Bench: Shri P.M. Jagtap, Hon’Ble Vice -] I.T.A. No. 1500/Kol/2018 Assessment Year : 2016-17 M/S. Munnilal & Dhuridevi Baid Chritable Trust.............................…………………Appellant 4, Ho Chi Minh Sarani, 2Nd Floor, Suit No. 2F, Jeevan Deep, Kolkata – 700 071. [Pan : Aaatm 7374 D] Ito (Exemption) Ward 1(4), Kolkata...................……………………………………....Respondent 10B, Middleton Row, 6Th Floor, Kolkata – 700 071. Appearances By: Shri Rajesh Kumar Duggar, Fca Appearing On Behalf Of The Assessee. Shri Alok Nag, Addl. Cit, Sr. Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : October 23, 2018 Date Of Pronouncing The Order : October 31, 2018 Order This Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Cit (Appeals) – 25, Kolkata Dated 27.04.2018 & The Grounds Raised Therein By The Assessee Read As Under: “1. For That The Ld. Cit(A) Erred In Law & Facts Allowing The Appeal Statistically ‘Since He Gave The Direction To The Ao To Verify The Claim Of The Appellant As Per Provisions Of Section 11 Of The Act’ Without Paying Attention To The Fact That The Order Appealed Has Been Passed Under Section 143(1) Of The Act & The Provisions Of Section 250(6) Of The Act. 2. For That The Ld. Cit(A) Erred In Law & Facts Allowing The Appeal Statistically ‘Since He Gave The Direction To The Ao To Verify The Claim Of The Appellant As Per Provisions Of Section 11 Of The Act’ Not Appreciating The Provisions Of Section 143(1) Of The Act Though Adjustments Mentioned In The Said Section Do Not Cover The Adjustment Made, Further Before Proceeding To The Said Adjustment Proviso To Section 143(1) Requiring Intimation To Be Given To Appellant Was Not Complied.”

Section 11Section 139(1)Section 143(1)Section 2(15)Section 250(6)Section 80

M/S. Om, Kolkata vs. ITO (Exemption), Ward - 1(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1499/KOL/2018[2016-17]Status: DisposedITAT Kolkata31 Oct 2018AY 2016-17

Bench: Shri P.M. Jagtap, Hon’Ble Vice -] I.T.A. No. 1499/Kol/2018 Assessment Year : 2016-17 M/S. Om.............................……………………………………………………………........................Appellant 127, Netaji Subhas Road, 4Th Floor, Room No. 407, Kolkata – 700 001. [Pan : Aaato 1811 H] Ito (Exemption) Ward 1(2), Kolkata...................……………………………………...Respondent 10B, Middleton Row, 5Th Floor, Kolkata – 700 071. Appearances By: Shri Rajesh Kumar Duggar, Fca Appearing On Behalf Of The Assessee. Shri Alok Nag, Addl. Cit, Sr. Dr Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : October 23, 2018 Date Of Pronouncing The Order : October 31, 2018 Order This Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Cit (Appeals) – 25, Kolkata Dated 27.04.2018 & The Grounds Raised Therein By The Assessee Read As Under: “1. For That The Ld. Cit(A) Erred In Law & Facts Allowing The Appeal Statistically ‘Since He Gave The Direction To The Ao To Verify The Claim Of The Appellant As Per Provisions Of Section 11 Of The Act’ Without Paying Attention To The Fact That The Order Appealed Has Been Passed Under Section 143(1) Of The Act & The Provisions Of Section 250(6) Of The Act. 2. For That The Ld. Cit(A) Erred In Law & Facts Allowing The Appeal Statistically ‘Since He Gave The Direction To The Ao To Verify The Claim Of The Appellant As Per Provisions Of Section 11 Of The Act’ Not Appreciating The Provisions Of Section 143(1) Of The Act Though Adjustments Mentioned In The Said Section Do Not Cover The Adjustment Made, Further Before Proceeding To The Said Adjustment Proviso To Section 143(1) Requiring Intimation To Be Given To Appellant Was Not Complied.”

Section 11Section 139(1)Section 143(1)Section 2(15)Section 250(6)Section 80

DCIT (Exemptions), Chennai vs. Great Lakes Institute of Management, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 2879/CHNY/2017[2011-12]Status: DisposedITAT Chennai29 Oct 2018AY 2011-12

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddyआयकर अपील सं./I T.A. No. 2879/Chny/2017 िनधा"रण वष"/Assessment Year:2011-12 The Deputy Commissioner Of M/S. Great Lakes Institute Of Income Tax (Exemption), Chennai Vs. Management, No. 24, South Mada Circle, Aayakar Bhavan, Annexe Street, Srinagar Colony, Saidapet, Building, Iii Floor, 121, M.G. Road, Chennai 600 015. Nungambakkam, Chennai – 600 034. [Pan:Aaccg2885L] (अपीलाथ" /Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri Maruda Pandian, Addl. Cit ""थ" की ओर से/Respondent By : None सुनवाई की तारीख/ Date Of Hearing : 11.09.2018 घोषणा की तारीख /Date Of Pronouncement : 29.10.2018 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Revenue Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals) 17, Chennai Dated 14.09.2017 Relevant To The Assessment Year 2011-12. The Only Effective Ground Raised In The Appeal Of The Revenue Is That The Ld. Cit(A) Has Erred In Holding That The Assessee Is Eligible To Set Off Of Brought Forward Excess Application Of Funds To Subsequent Years.

For Appellant: Shri Maruda Pandian, Addl. CITFor Respondent: None
Section 11Section 12ASection 142(1)Section 143(2)Section 143(3)