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

Income-tax Act, 2025: ss.332–355

Section 13(2)(b) 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)(b) is Sudhir Kumar Shah (HUF) v. CIT-III, Ludhiana) (224 Taxmann 178), cited in 38 of the 38 judgments on BharatTax that turn on this section.

Leading authorities on Section 13(2)(b)

Sudhir Kumar Shah (HUF) v. CIT-III, Ludhiana)
224 Taxmann 178 · 2014 · High Court
38
citing judgments

The addition of cash deposits to an assessee's income under Section 68 is justified when the Assessment Officer notices huge cash deposits, as the onus is on the assessee to explain their nature and source.

Sudhir Kumar Shah (HUF) v. CIT-III, Ludhiana)
239 Taxmann 264 · 2016 · Supreme Court
36
citing judgments
Agappa Child Centre v. CIT
226 ITR 211 · 1997 · High Court
33
citing judgments

A trust's exemption is cancelled if its property is used for the benefit of a person prohibited under section 13(3), or if the trust fails to accurately reflect its income, thereby not truly disclosing the income arising from trust property.

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

The real income of a trust, not deemed income, is to be considered for accumulation. Deductions allowable in a normal commercial manner should be applied before determining the income to be 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)(b)

Commissioner of Income Tax (Exemptions) Delhi vs. Hamdrd National Foundation (India)

ITA/115/2021HC Delhi16 Feb 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE NAVIN CHAWLA

Section 11Section 13(2)(b)Section 13(3)

Shahshib Minority Welfare and Educational Society, Bangalore vs. Income Tax Officer Ward-3(E), Bangalore

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

ITA 2875/BANG/2018[2009-10]Status: DisposedITAT Bangalore03 Jan 2022AY 2009-10

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Gangadhar Saastry, ITPFor Respondent: Sri.Ananda H., Addl.CIT-DR
Section 11Section 12ASection 13(2)(a)Section 13(2)(b)Section 13(3)Section 143(3)Section 251(2)

Deputy Commissioner of Income Tax, Pune vs. Mukund Bhavan Trust, Pune

In the result, the appeal is dismissed

ITA 373/PUN/2017[2007-08]Status: DisposedITAT Pune30 Nov 2021AY 2007-08

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Raviआयकर अपील सं. / Ita No.373/Pun/2017 िनधा"रण वष" / Assessment Year : 2007-08

Section 11Section 13Section 13(1)(c)Section 143(3)Section 147Section 148

The ACIT(E), Circle-1, Ahmedabad vs. Adarsh Foundation, Ahmedabad

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

ITA 352/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad07 Oct 2021AY 2015-16

Bench: Shri Pradip Kumar Kedia& Ms. Madhumita Roy

For Appellant: Shri S. N. Soparkar, Sr. Adv., with ShriFor Respondent: Shri S. S. Shukla, Sr. DR
Section 11Section 11(1)(a)Section 13(1)(c)Section 13(2)(d)Section 143(3)

Hamdard Nation Foundation (India), New Delhi vs. ACIT (E), New Delhi

In the result, the appeal of the assessee is allowed

ITA 1641/DEL/2019[2013-14]Status: DisposedITAT Delhi03 Jun 2020AY 2013-14

Bench: Ms. Sushma Chowladr. B. R. R. Kumar(E-Court Module) Ita No. 1641/Del/2019 : Asstt. Year : 2013-14 Hamdard National Foundation Vs Acit(E), (India), Hamdard Building, 2A/3, New Delhi-110002 Asaf Ali Road, New Delhi-110002 (Appellant) (Respondent) Pan No. Aaath0843G Assessee By : Sh. R. M. Mehta, Sr. Adv. Revenue By : Sh. Anupam Kant Garg, Cit Dr Date Of Hearing: 28.05.2020 Date Of Pronouncement: 03.06.2020

For Appellant: Sh. R. M. Mehta, Sr. AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 10Section 11Section 13(2)Section 13(2)(b)Section 13(3)Section 13(3)(b)

Chandmall Sarawgi Charitable Trust, A- Block, Mahabir Market, H.B.Road, Fancy Bazar, Guwahati - 781001, Guwahati vs. Income Tax Officer, Ward 2(3)/ Exemptions Aayakar Bhawan, G.S.Road, Christain Basti, Guwahati - 781005, Guwahati

Appeal is allowed

ITA 3/GTY/2018[2011-12]Status: DisposedITAT Guwahati18 Dec 2019AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L.Sainiassessment Year :2011-12 Chandmall Sarawgi V/S. Acit (Trust Circle) Charitable Trust, A-Block, Now As Income Tax Mahabir Market, H.B. Road, Officer, Ward- Fancy Bazaar, Guwahati- 2(3)(Exemption) 781001 [Pan No.Aaatc 2439 H] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri Sanjay Modi, Fca अपीलाथ" क" ओर से/By Appellant Shri Amitava Sen, Jcit-Dr ""यथ" क" ओर से/By Respondent 11-12-2019 सुनवाई क" तार"ख/Date Of Hearing 18-12-2019 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per Bemch:- This Assessee’S Appeal For Assessment Year 2011-12 Arises Against The Commissioner Of Income Tax (Appeals)-2, Guwahati’S Order Dated 27.10.2017 Passed In Case No. Guwa-87/2014-15/15 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused. 2. The Sole Substantive Issue(S) That Arises For Our Apt Adjudication In The Instant Lis Is That Of Correctness Of The Lower Authorities Action Invoking Sec. 13(1)(C)(Ii) R.W.S. 13(2)(B) Disallowance Of ₹4,47,980/- On The Ground That The Assessee’S Trustee, Shri Ganpat Rai Sarawgi Was Found To Have Been Residing In The Trust’S Residential Property Without Paying Any Rent. The Revenue’S Case As Per Both The Lower Authorities’ Action Is That Shri Sarawgi Has Not Paid Any Rent Much Less Than Adequate Rent U/S. 13(1)(C)(B) Of The Act & Therefore

Section 11(2)Section 13(1)(c)Section 143(3)

DCIT (Exemption), New Delhi vs. Hamdard National Foundation (India), New Delhi

In the result, appeals of the assessee in ITA No

ITA 4260/DEL/2016[2012-13]Status: DisposedITAT Delhi01 Nov 2019AY 2012-13

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

ACIT, New Delhi vs. Hamdard National Foundation (India), New Delhi

In the result, appeals of the assessee in ITA No

ITA 1845/DEL/2016[2011-12]Status: DisposedITAT Delhi01 Nov 2019AY 2011-12

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

ADIT (E), New Delhi vs. Hamdard National Foundation (India), New Delhi

In the result, appeals of the assessee in ITA No

ITA 3403/DEL/2014[2010-11]Status: DisposedITAT Delhi01 Nov 2019AY 2010-11

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

Hamdard National Foundation (India), New Delhi vs. ACIT (Exemption), New Delhi

In the result, appeals of the assessee in ITA No

ITA 1642/DEL/2019[2014-15]Status: DisposedITAT Delhi01 Nov 2019AY 2014-15

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

Hamdard National Foundation (India), New Delhi vs. ACIT (Exemption), New Delhi

In the result, appeals of the assessee in ITA No

ITA 1640/DEL/2019[2007-08]Status: DisposedITAT Delhi01 Nov 2019AY 2007-08

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

Hamdard National Foundation (India), New Delhi vs. ADIT (E), Delhi

In the result, appeals of the assessee in ITA No

ITA 5411/DEL/2012[2009-10]Status: DisposedITAT Delhi01 Nov 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

ACIT (E), New Delhi vs. Hamdard National Foundation (India), New Delhi

In the result, appeals of the assessee in ITA No

ITA 4789/DEL/2012[2009-10]Status: DisposedITAT Delhi01 Nov 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: Shri R.M. Mehta, AdvocateFor Respondent: Ms. Sushma Singh, CIT DR
Section 10Section 11Section 13(1)(b)Section 13(2)(b)Section 13(3)Section 13(3)(b)Section 2

Global Institute of Technology Society, Jaipur vs. Deputy Commissioner of Income Tax (Exemption) Circle, Jaipur

In the result, appeal of the assessee is partly allowed

ITA 1066/JPR/2018[2015-16]Status: DisposedITAT Jaipur05 Nov 2018AY 2015-16
For Appellant: Shri S.L. Poddar (Adv) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 11Section 12ASection 13Section 13(1)(c)Section 13(2)(b)Section 143(3)Section 164(2)

Assistant Commissioner of Income-Tax vs. M/S. Noble Medical Foundation & Research Centre, Ahmednagar

In the result, the appeal of the Revenue is dismissed

ITA 2328/PUN/2016[2011-12]Status: DisposedITAT Pune03 Aug 2018AY 2011-12

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं. / Ita No. 2328/Pun/2016 अपील िनधा"रण िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" / Assessment Year : 2011-12 वष"

For Appellant: Shri Hari KrishanFor Respondent: Mrs. Shweta Mishra
Section 11Section 12ASection 13Section 13(1)(c)Section 2(15)

ADIT (E), New Delhi vs. Hamdard Nation Foundation (India), New Delhi

In the result, the appeal of the revenue is allowed for statistical

ITA 1985/DEL/2012[2007-08]Status: DisposedITAT Delhi25 Oct 2016AY 2007-08

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. A.K. Saroha, CIT/DRFor Respondent: Sh. R.M. Mehta, Advocate
Section 11Section 11(1)Section 12ASection 13(2)(b)Section 13(3)Section 143(1)Section 143(3)Section 80G(5)(vi)

Director of Income Tax(Exempn)N.Delhi vs. Raunaq Education Foundation

The appeal is dismissed with

C.A. No.-000090-000090 - 2013Supreme Court07 Jan 2013

Bench: The Income Tax Commissioner. The Income Tax Commissioner Was Pleased To Dismiss The Appeal By An Order Dated 29Th May, 2005. Being Aggrieved By The Said Order Of Dismissal, The Respondent-Assessee Had Filed An Appeal Before The Income Tax Appellate Tribunal, Delhi Bench “F” At New Delhi. The Said Appeal, Being Ita No.2657/Del/2006, Was Allowed By An Order Dated 09Th March, 2007. Being Aggrieved By The Said Order, The Revenue Had Filed Ita No.150 Of 2008 Before The High Court Of Delhi At 2

Section 11Section 13Section 13(2)Section 80G

Director of Income Tax(Exempn)N.Delhi vs. Raunaq Education Foundation

The appeal is dismissed with

C.A. No.-000090-000090 - 2013Supreme Court07 Jan 2013

Bench: The Income Tax Commissioner. The Income Tax Commissioner Was Pleased To Dismiss The Appeal By An Order Dated 29Th May, 2005. Being Aggrieved By The Said Order Of Dismissal, The Respondent-Assessee Had Filed An Appeal Before The Income Tax Appellate Tribunal, Delhi Bench “F” At New Delhi. The Said Appeal, Being Ita No.2657/Del/2006, Was Allowed By An Order Dated 09Th March, 2007. Being Aggrieved By The Said Order, The Revenue Had Filed Ita No.150 Of 2008 Before The High Court Of Delhi At 2

Section 11Section 13Section 13(2)Section 80G