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

Mount Carmel Educational Society, Trivandrum vs. ITO, Exemption Ward, Trivandrum

In the result, the appeal filed by the assessee stands partly allowed

ITA 72/COCH/2025[2017-18]Status: DisposedITAT Cochin26 Jun 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2017-18 Mount Carmel Educational Society .......... Appellant Kanjiramkulam P.O., Thiruvananthapuram 695524 [Pan: Aabam3865A] Vs. Ito, Ward-1(1), Thiruvananthapuram .......... Respondent Appellant By: Ms. Binisha Baby, Advocate Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 28.05.2025 Date Of Pronouncement: 26.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-2, Ludhiana [Cit(A)] Dated 30.121.2024 For Assessment Year (Ay) 2017-18. 2. Brief Facts Of The Case Are That The Appellant Is A Charitable Trust Duly Registered U/S. 12A Of The Income Tax Act, 1961 (The Act). The Return Of Income For Ay 2017-18 Was Filed On 01.08.2017 Declaring Nil Income After Claiming Exemption U/S. 11 Of The Act. The Said Return Of Income Was Processed By The Cpc U/S. 143(1) Of 2 Mount Carmel Educational Society The Act Vide Intimation Dated 25.03.2019 Denying Exemption U/S. 11 & Assessed The Total Income At Rs. 2,03,20,447/- On The Ground That Audit Report In The Prescribed Form 10B Was Not Filed Along With The Return Of Income.

For Appellant: Ms. Binisha Baby, AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 11Section 12ASection 143(1)

The Gasper Education Society, Kolkata vs. ITO, Ward 7(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 871/KOL/2025[2018-2019]Status: DisposedITAT Kolkata25 Jun 2025AY 2018-2019

Bench: Shri George Mathan & Shri Sanjay Awasthiआयकर अपील सं/Ita No.871/Kol/2025 (निर्धारण वर्ा / Assessment Year : 2018-2019) The Gasper Education Society Vs Ito Ward-7 (1), Kolkata 40A, Ajc Bose Road, Nonapukur Tram Depot, Kolkata-700017 Pan No. :Aaabt 0159 K (अपीलधर्थी /Appellant) (प्रत्यर्थी / Respondent) .. निर्धाररती की ओर से /Assessee By : Shri Giridhar Dhelia, Advocate रधजस्व की ओर से /Revenue By : Shri P.N.Barnwal, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 25/06/2025 घोषणा की तारीख/Date Of Pronouncement : 25/06/2025 आदेश / O R D E R Per George Mathan, Jm : This Is An Appeal Filed By The Assessee Against The Order Dated 06.03.2025 Of The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Passed In Din & Order No.Itba/Nfac/S/250/2024- 25/1074097940(1) For The Assessment Year 2018-2019. 2. Shri Giridhar Dhelia, Ld. Advocate Appeared On Behalf Of The Assessee. Shri P.N.Barnwal, Ld. Cit-Dr Appeared On Behalf Of The Revenue. 3. It Was Submitted By The Ld. Ar That The Return Filed By The Assessee Was Processed & The Assessment Came To Be Completed U/S.143(3) Of The Act, Wherein The Assessing Officer Has Denied The Assessee The Benefit Of Sections 11 & 12 Of The Act On The Ground That The Return Filed By The Assessee Was U/S.139(4) Of The Act. It Was The Submission That The Ld. Cit(A) Has Also Confirmed The Order Of The Assessing Officer. Ld.Ar Drew Our Attention To The Circular Issued By The Cbdt In F.No.173/193/2019-Ita-

For Appellant: Shri Giridhar Dhelia, AdvocateFor Respondent: Shri P.N.Barnwal, CIT-DR
Section 11Section 12ASection 12A(1)(ba)Section 139Section 139(4)Section 143(1)(a)Section 143(3)