Section 13(2) of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 13(2) falls under section 13 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 13(2) is CIT v. Society of the Sisters of St. Anne (146 ITR 28), cited in 195 of the 90 judgments on BharatTax that turn on this section.

Leading authorities on Section 13(2)

CIT v. Society of the Sisters of St. Anne
146 ITR 28 · 1984 · High Court
195
citing judgments

Depreciation claimed by a charitable trust on its assets is an allowable application of income for computing exemption under Section 11, and this does not constitute a double deduction.

Director of Income-tax (Exemption) v. Framjee Cawasjee Institute
109 CTR 463 · 1993 · High Court
191
citing judgments

A charitable trust is allowed to claim depreciation on its assets for computing its income, even if the capital expenditure incurred on acquiring those assets was treated as an application of income in the year of acquisition.

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.

CIT v. Sheth Manilal Ranchhoddas Vishram Bhavan Trust
198 ITR 598 · 1992 · High Court
98
citing judgments

When computing the income of a charitable trust for exemption under Section 11, depreciation must be allowed as an application of income based on commercial principles. This does not constitute a double deduction.

CIT v. Raipur Pallottine Society
180 ITR 579 · 1989 · High Court
79
citing judgments

Depreciation is deductible when computing the income of a charitable trust under Section 11, and treating both depreciation and capital expenditure as an application of income for charitable purposes does not amount to a double deduction.

DIT (Exemption) v. Girdharilal Shewnarain Tantia Trust
199 ITR 215 · 1993 · High Court
24
citing judgments

The 'income' contemplated by Section 11 is the real income, not merely the assessed or assessable income, and income from property held under trust must be arrived at in a normal commercial manner. This implies that statutory deductions under Section 14 are not applicable when income from property held under trust is excluded.

Jaswant Rai v. CWT
107 ITR 477 · 1977 · High Court
18
citing judgments

The Revenue cannot apply different standards to different assessees when accepting the correctness of a judicial decision, without just cause.

Association of Corporation & Apex Societies of Handlooms v. ADIT
30 Taxmann.com 22 · 2013 · High Court
7
citing judgments

Judgments on Section 13(2)

Institute of Public Auditors of India, New Delhi vs. CIT(Exemption), New Delhi

In the result, the appeal of the assessee is allowed in the aforesaid terms

ITA 1810/DEL/2026[2026-27 onwards]Status: DisposedITAT Delhi16 Sept 2026

Bench: Shri Mahavir Singh, Hon’Ble & Shri M. Balaganesh, Hon’Blea.Y. : 2026-27 Institute Of Public Auditors Of Vs. Cit (Exemptions) India, Civic Centre, 223, 2Nd Floor, Minto Road, C-Wing, Audit Bhawan, I.P. Estate, New Delhi New Delhi – 2 (Pan: Aaat10770P) (Appellant) (Respondent) Assessee By : Sh. Pranav Sharma, Ca Department By : Sh. Zafarul Haque Tanweer, Cit(Dr)

For Appellant: Sh. Pranav Sharma, CAFor Respondent: Sh. Zafarul Haque Tanweer, CIT(DR)
Section 11Section 12ASection 13(1)(c)Section 143(3)Section 2(13)Section 2(15)

Ambassador Building Solutions Pvt Ltd, Delhi vs. ITO Ward 14(2), New Delhi

In the result, the appeal filed by the assessee in ITA No

ITA 1314/DEL/2026[2012-13]Status: DisposedITAT Delhi14 Sept 2026AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra[Assessment Year : 2012-13] M/S. Ambassador Building Vs Income Tax Officer Solutions Pvt. Ltd. Ward – 14(2) 509/5, Maa Anandmai Marg New Delhi Govindpuri, New Delhi Pan : Aaeck 1941 M (Appellant) (Respondent) Assessee By Shri Rajeev Narayan, Adv. Revenue By Shri Bhogendra Prasad, Sr. D.R. Date Of Hearing 19.08.2026 Date Of Pronouncement 14.09.2026 Order Per Naveen Chandra []:

Section 13(2)Section 250Section 271(1)(c)

The Amir Education Society, Faridabad vs. Deputy Commissioner of Income Tax, Chandigarh

In the result, appeal of the assessee in ITA No

ITA 3539/DEL/2026[2025-26]Status: DisposedITAT Delhi12 Aug 2026AY 2025-26

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

Section 12ASection 12A(1)(ac)Section 13(1)(c)

Ct Educational Society, Jalandhar vs. DCIT, Chandigarh

In the result, the appeal filed by the Assessee is Partly Allowed for

ITA 396/CHANDI/2024[2016-17]Status: DisposedITAT Chandigarh10 Dec 2025AY 2016-17
For Appellant: Shri Ashray Sarna, CA(Virtual Mode)For Respondent: Shri Manav Bansal, CIT, DR
Section 11Section 12ASection 13(1)(c)Section 13(2)Section 143(2)Section 143(3)Section 2(15)Section 250

Mr. Arpanbhai Virambhai Desai, Gandhinagar vs. The Pr. CIT, Ahmedabad-3, Ahmedabad

In the result, all four appeals filed by the assessee are

ITA 759/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2015-16
For Appellant: Shri D K Parikh, ARFor Respondent: Shri Sher Singh, CIT.DR
Section 12Section 147Section 263

Pramila Katiyar Charitable and Educational Welfare Trust, Noida vs. ITO (Exemptions), Ghaziabad

In the result, assessee’s appeal is allowed for statistical purposes

ITA 4054/DEL/2025[2018-19]Status: DisposedITAT Delhi17 Oct 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Brajesh Kumar Singhassessment Year: 2018-19

Section 13(2)Section 143(3)Section 250(6)

R. Jayanna HUF, Bengaluru vs. DCIT, Central Circle-2(2), Bangalore

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 986/BANG/2025[2013-14]Status: DisposedITAT Bangalore08 Oct 2025AY 2013-14

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2013-14

For Appellant: Shri Raghavendra Chakravarthy, CAFor Respondent: Shri Balusamy N, JCIT (DR)
Section 139Section 147Section 148Section 2(47)Section 54F

DCIT, Mumbai vs. Jamsetji Tata Trust, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 2058/MUM/2025[2016-17]Status: DisposedITAT Mumbai08 Aug 2025AY 2016-17

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Suraiya/Sukhsagar Sayal, A/RsFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 10(34)Section 11Section 11(7)Section 12ASection 13(1)

DCIT, Kautilya Bhawan vs. Jamsetji Tata Trust, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 2057/MUM/2025[2015-16]Status: DisposedITAT Mumbai08 Aug 2025AY 2015-16

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Suraiya/Sukhsagar Sayal, A/RsFor Respondent: Shri Vivek Perampurna, CIT D/R
Section 10(34)Section 11Section 11(7)Section 12ASection 13(1)

Dr K R Shroff Foundation, Ahmedabad vs. The Dy. CIT, Circle-1, Exmp, Ahmedabad

Appeal of the assessee is partly allowed

ITA 769/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad05 Aug 2025AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

Section 11Section 12ASection 143(3)Section 147Section 68

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

Accordingly, the same are being dismissed as having become academic in nature

ITA 362/LKW/2020[2014-15]Status: DisposedITAT Lucknow30 Jun 2025AY 2014-15

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Amit Singh Chauhan, D.R
Section 10Section 11Section 12ASection 147Section 148

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

Accordingly, the same are being dismissed as having become academic in nature

ITA 361/LKW/2020[2011-12]Status: DisposedITAT Lucknow30 Jun 2025AY 2011-12

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Amit Singh Chauhan, D.R
Section 10Section 11Section 12ASection 147Section 148

M/S. Barrows Blue Bells School, Baharaich vs. The I.T.O. (E), Lucknow

ITA 360/LKW/2020[2010-11]Status: DisposedITAT Lucknow30 Jun 2025AY 2010-11

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: Respondent byFor Respondent: Shri Rakesh Garg, Advocate
Section 10Section 11Section 12ASection 147Section 148

Aspan Academy Noida, New Delhi vs. ACIT Central Circle- 20, New Delhi

ITA 330/DEL/2021[2014-15]Status: DisposedITAT Delhi30 May 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 11Section 11(4)Section 12Section 12ASection 13Section 13(2)Section 132Section 143(1)Section 153CSection 8

Aspan Academy Noida, New Delhi vs. ACIT Central Circle- 20, New Delhi

ITA 329/DEL/2021[2013-14]Status: DisposedITAT Delhi30 May 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 11Section 11(4)Section 12Section 12ASection 13Section 13(2)Section 132Section 143(1)Section 153CSection 8

Anthayya Education Foundation Trust, Mumbai vs. ITO Exemption-1(1), Mumbai

In the result, the appeal of the assessee for A

ITA 5004/MUM/2024[2010-2011]Status: DisposedITAT Mumbai09 May 2025AY 2010-2011

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

Section 12ASection 142(1)

Anthayya Education Foundation Trust, Mumbai vs. ITO Exemption 1-(1), Mumbai

In the result, the appeal of the assessee for A

ITA 5001/MUM/2024[2016-2017]Status: DisposedITAT Mumbai09 May 2025AY 2016-2017

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2016-17 & Assessment Year: 2010-11

For Appellant: Mr. Margav Shukla &For Respondent: Mr. Ram Krishn Kedia, Sr. DR
Section 12ASection 142(1)

Sandeep Mohanraj Singhi, Ahmedabad vs. ACIT, Circle4(2), Ahmedabad

In the result, appeal of the assessee is partly allowed

ITA 769/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad07 Jan 2025AY 2015-16

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaassessment Year: 2018-19

Section 11Section 12ASection 143(3)Section 147Section 68

Madhurika Educational & Charitable Trust, Chennai vs. Assistant Director of Income Tax, Chennai

In the result the appeal of the assesse is partly allowed

ITA 641/CHNY/2024[2010-11]Status: DisposedITAT Chennai16 Oct 2024AY 2010-11

Bench: Shri Manu Kumar Giri & Shri Amitabh Shuklaआयकर अपील सं./Ita No.641/Chny/2024 ननिाारण वर्ा /Assessment Year: 2010-11 Madhurika Educational & Asst. Director Of Income Tax Charitable Trust, Vs. (Exemptions)-Iv, No.11, Millers Road, Kilpauk, Chennai-34 Chennai-600010. [Pan: Aaatm8627M] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant By : Shri D.Anand, Advocate. प्रत्यर्थी की ओर से /Respondent By : Ms.Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 30.07.2024 घोर्णा की तारीख /Date Of Pronouncement : 16.10.2024 आदेश / O R D E R Per Amitabh Shukla, A.M : This Appeal Is Filed Against The Order Bearing Din & Order No.Itba/Nfac/S/250/2023-24/1059541811(1) Dated 10.01.2024 Of The Learned Commissioner Of Income Tax [Herein After “Cit(A), National Faceless Appeal Center[Nfac], Delhi, For The Assessment Years 2010- 11. Through The Aforesaid Appeal The Assesse Has Challenged Order U/S 250 Dated 10.01.2024 Passed By Nfac, Delhi. :- 2 -:

For Appellant: Shri D.Anand, AdvocateFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 11Section 12ASection 13Section 13(1)Section 13(1)(c)Section 13(2)(C)Section 13(3)(cc)Section 13(3)(d)Section 164(3)Section 250

Sunil J. Jagtap, Income Tax Officer(Exemptions)-1(2), Mumbai vs. Centre for the Study of Social Change, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3941/MUM/2024[2015-16]Status: DisposedITAT Mumbai25 Sept 2024AY 2015-16

Bench: SHRI B R BASKARAN, ACCOUNTANT MEMBER, SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 11Section 12ASection 13(3)Section 14Section 143(3)Section 250Section 263