Section 13(2)(a) of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 13(2)(a) 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)(a) is DIT (Exemption) v. Girdharilal Shewnarain Tantia Trust (199 ITR 215), cited in 24 of the 46 judgments on BharatTax that turn on this section.

Leading authorities on Section 13(2)(a)

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.

Trib.) 9. DCIT v. Sushil Kumar Jain
15 ITD 1 · 1986 · ITAT
10
citing judgments

Rent received from specified concerns is considered adequate if it is legally sufficient and reasonably so, not necessarily what is determined as market value by another party, unless the price is unconscionable.

8 Commissioner of Gift-Tax v. Indo Traders and Agencies (P.) Ltd.
131 ITR 313 · 1981 · High Court
4
citing judgments
Banerjee v. CIT
9 ITR 137 · 1941 · Reported
3
citing judgments
Page 14 of 24 20.2.1. In Reva Investment Pvt. Ltd. v. Commissioner of Gift Tax, Gujarat II
9 SCC 111 · 2001 · Reported
3
citing judgments

Judgments on Section 13(2)(a)

M/S Jai Narain Shiksha Samiti, Bhopal vs. The ACIT 2(1), Bhopal

Appeals of the assessees are allowed

ITA 455/IND/2016[2011-12]Status: DisposedITAT Indore17 Jan 2017AY 2011-12

Bench: Shri D.T. Garasia, Hon’Ble & Shri O.P. Meena, Hon’Blea.Y. 2011-12 H.K. Kalchuri Education Trust, Bhopal Pan – Aaath 3738 E ::: Appellant

Section 11Section 13(1)(c)Section 13(3)Section 13(3)(e)Section 2(15)Section 28

Lokmanya Tilad Janakalya Shikshan Sanstha, Nagpur vs. Assistant Commissioner of Income Tax Circle -2, Nagpur

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

ITA 384/NAG/2012[2008-09]Status: DisposedITAT Nagpur09 Jan 2017AY 2008-09

Bench: Shri Shamim Yahya & Shri Ram Lal Negi..

For Appellant: Shri K.P. DewaniFor Respondent: Shri A.R. Ninawe
Section 1Section 11Section 13(1)(c)Section 13(3)Section 40

ITO (E) 2(3), Mumbai vs. St Josephs Technical School, Mumbai

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

ITA 1417/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 Oct 2016AY 2010-11

Bench: Shri Rajendra & Shri C.N. Prasadआयकर अपील सं /I.Ta No. 1417/Mum/2015 ("नधा"रण वष" / Assessment Year: 2010-11 The Ito (E) 2(3), St. Joseph’S Technical School, बनाम/ Piramal Chambers, Premier Automobiles Road, Vs. 5Th Floor, Parel, Kurla (W), Mumbai-400 012 Mumbai-400 070 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aacts 0971N .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri Rajesh Ojha अपीलाथ" ओर से/ Appellant By: ""यथ" क" ओर से/Respondent By: Shri Kishor P. Pabari

For Respondent: Shri Kishor P. Pabari
Section 11Section 11(2)Section 11(5)Section 13(2)(a)

ITO (E) 2(3), Mumbai vs. St. Joseph Technical School, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 4271/MUM/2015[2011-12]Status: DisposedITAT Mumbai18 Aug 2016AY 2011-12

Bench: Sri Mahavir Singhthe Income Tax Officer (E) 2 (3), Vs. St. Joseph Technical School, Room No.513, Piramal Chambers, Premier Automobile Road, Lalbaug, Parel, Mumbai 12 Kurla(West), Mumbai 400070 Pan: Aacts 0971 N Appellant .. Respondent Appellant By .. Shri K. L. Kanak, Sr. Dr Respondent By .. Shri Ashok Gokani, Ar Date Of Hearing .. 18-08-2016 Date Of Pronouncement .. 18-08-2016 O R D E R Per Mahavir Singh, Jm: This Appeal By The Revenue Is Arising Out Of Order Of Cit (A)-1, Mumbai In Appeal No. Cit (A)-1/It/E-1(4)/2014-15 Dated 23-04-2015. Assessment Was Framed By Ito (E) 1(1), Mumbai For The Assessment Year 2011-12 U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter ‘The Act’) Vide His Order Dated 06Th March, 2014. 2. The Only Issue In This Appeal Of The Revenue Is Against The Order Of The Cit (A) Allowing Exemption U/S 11(5) Of The Act Treating The Educational Activity Being The Courses Conducted By The Assessee Such As Welding, Allied Trades, Draughtsman Course, Workshop Skill Etc. The Revenue Has Also Raised The Issue Regarding Violation Of Section 11(5) Read With Section 13(2) (A) Of The Act Being Interest Free Funds Advanced To Don Bosco Institute Of Technology As Interest Free Advance Amounting To Rs.2.69 Crores.

Section 11Section 11(2)Section 11(5)Section 13(2)Section 143(3)Section 2(15)

Commissioner of Income Tax Central Kanpur vs. J.K. Charitable Trust Kamal Tower, Kanpur

CIVIL APPEAL No. 2092/2006Supreme Court07 Nov 2008

Bench: 3 Judges

Section 256(1)

Commissioner of Income Tax, Amritsar vs. Tattan Trust Amritsar Etc

CIVIL APPEAL No. 2328/1983Supreme Court08 Jul 1997

Bench: 2 Judges

Section 11Section 13Section 13(1)Section 21Section 256Section 27