Which cases are most cited on Section 13(2)(c)?

Airport Authority of India v. CIT (340 ITR 407) — 40 citing judgments; CIT v. Shri Billeswara Charitable (246 ITR 452) — 38 citing judgments; DIT(E) v. Charanjiv Charitable Trust (43 Taxmann.com 300) — 28 citing judgments; 99 ITR 375 (Del), CIT vs. Seshasayee Paper & Boards Ltd. (2000) 242 ITR 490 (Mad), CWT v. Prithvi Raj & Co. (199 ITR 424) — 21 citing judgments; CIT v. Bholaram Educational Society (101 Taxmann.com 193) — 13 citing judgments.

How many judgments are there on Section 13(2)(c)?

BharatTax indexes 72 ITAT, High Court and Supreme Court judgments that turn on Section 13(2)(c) of the Income Tax Act, 1961.

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

Q: What is the leading case on Section 13(2)(c) of the Income Tax Act?

Airport Authority of India v. CIT (340 ITR 407) is the decision most relied on for Section 13(2)(c), cited in 40 judgments. Expenditure incurred to facilitate the smooth functioning of business and ensure profitable operation is revenue in nature and not capital expenditure.

Income-tax Act, 2025: ss.332–355

Section 13(2)(c) 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)(c) is Airport Authority of India v. CIT (340 ITR 407), cited in 40 of the 72 judgments on BharatTax that turn on this section.

Leading authorities on Section 13(2)(c)

Airport Authority of India v. CIT

340 ITR 407 · 2012 · High Court

citing judgments

Expenditure incurred to facilitate the smooth functioning of business and ensure profitable operation is revenue in nature and not capital expenditure.

CIT v. Shri Billeswara Charitable

246 ITR 452 · 2000 · High Court

citing judgments

DIT(E) v. Charanjiv Charitable Trust

43 Taxmann.com 300 · 2014 · High Court

citing judgments

A charitable trust can claim depreciation on a capital asset even if its cost was treated as application of income for charitable purposes. Allowing depreciation does not constitute double allowance.

99 ITR 375 (Del), CIT vs. Seshasayee Paper & Boards Ltd. (2000) 242 ITR 490 (Mad), CWT v. Prithvi Raj & Co.

199 ITR 424 · 1993 · High Court

citing judgments

A Commissioner cannot invoke revisionary powers under Section 263 merely because further enquiry is needed; the Commissioner must demonstrate how the assessment order is erroneous and prejudicial to revenue, and cannot form an opinion without proper analysis.

CIT v. Bholaram Educational Society

101 Taxmann.com 193 · 2019 · Supreme Court

citing judgments

Exemption under Section 11 of the Income Tax Act is not denied to a trust where rent paid to a trustee for property is not excessive, even if the trustee is related to the settlors.

Apne Aap Women Worldwide (India) Trust v. ITO (Exemptions)

102 Taxmann.com 400 · 2019 · Reported

citing judgments

CIT v. Jamuna Lal Bajaj Seva Trust

171 ITR 568 · 1988 · High Court

citing judgments

Judgments on Section 13(2)(c)

Assistant Commissioner of Income Tax, Bengaluru vs. Cmr Jnanadhara Trust, Bengaluru

In the result, the appeal filed by the revenue is hereby dismissed

ITA 291/BANG/2024[2018-19]Status: DisposedITAT Bangalore03 Dec 2024AY 2018-19

Bench: Shri George George K & Shri Waseem Ahmed

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri D.K Mishra, CIT (DR)

Section 1Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Assistant Commissioner of Income Tax, Bengaluru vs. Cmr Jnanadhara Trust, Bengaluru

In the result, the appeal filed by the revenue is hereby dismissed

ITA 290/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Dec 2024AY 2017-18

Bench: Shri George George K & Shri Waseem Ahmed

For Appellant: Shri Narendra Kumar Jain, AdvocateFor Respondent: Shri D.K Mishra, CIT (DR)

Section 1Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Ravindra Shikshan Prasarak Mandal, Mumbai vs. Income Tax Officer Exemption, Thane

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

ITA 3511/MUM/2024[2015-16]Status: DisposedITAT Mumbai03 Dec 2024AY 2015-16

Bench: Shri B R Baskaran & Shri Raj Kumar Chauhanravindra Shikshan Prasarak Vs. Ito Ward Exemption, Mandal, Thane 5/8 Kartik Sadan Saverkar Road, Room No. 208, 2Nd Floor, Opp-Gopal Nagar, Dombivli, Quereshi Mansion, Gokhale Maharashtra – 421 201 Road, Naupada, Thane (West), Pan: Aabtr2696A Near Teen Hath Naka, Thane, Maharashtra – 400 602

Section 11(1)(a)Section 13(1)(c)Section 13(2)(c)Section 143(2)Section 250

Assisstant Commissioner of Income Tax, Circle-1, Chandigarh vs. Heritage Education Society, C/O Delhi Public School

In the result, all the appeals filed by the Department

ITA 2/CHANDI/2024[2011-12]Status: DisposedITAT Chandigarh07 Aug 2024AY 2011-12

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Assisstant Commissoner of Income Tax, Circle-1, Exemption, Chandigarh vs. Heritage Educational Society, C/O Delhi Public School

In the result, all the appeals filed by the Department

ITA 12/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh07 Aug 2024AY 2017-18

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Assisstant Commissioner of Income Tax, Circle-1, Exemption, Chandigarh vs. Heritage Educational Society, C/O Delhi Public School

In the result, all the appeals filed by the Department

ITA 11/CHANDI/2024[2013-14]Status: DisposedITAT Chandigarh07 Aug 2024AY 2013-14

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Assisstant Commissioner of Income Tax, Circle-1, Exemption, Chandigarh vs. Heritage Educational Society, C/O Delhi Public School

In the result, all the appeals filed by the Department

ITA 10/CHANDI/2024[2012-13]Status: DisposedITAT Chandigarh07 Aug 2024AY 2012-13

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Saraswati Mukund Education Society, Thane vs. ITO (Exemption), Thane

In the result appeal of the assessee is partly allowed for statistical purposes

ITA 337/MUM/2024[2015-16]Status: DisposedITAT Mumbai26 Jul 2024AY 2015-16

Bench: Shri Prashant Maharishi (Am) I.T.A. No. 337/Mum/2024 (A.Y. 2015-16) Saraswati Mukund Vs. Ito Exemption Education Society 208-209, 2Nd Floor Plot No. 15, Jeal Park Qureshi Mansion, Bhayander East Teen Hath Naka, Thane-401 105. Opp Malhar Talkies Pan : Aafts4158Q Thane(W)-400602. (Appellant) (Respondent) Assessee By Shri Bhuvanesh Kankani Department By Shri R.R. Makwana Date Of Hearing 06.06.2024 Date Of Pronouncement 26.07.2024 O R D E R

Section 11Section 13Section 131Section 143

Deputy Commissioner of Income Tax, Exemptions, Circle, Jaipur vs. Jyoti Vidyapeeth Trust, Jaipur

16. As a result, finding no merit in the appeal filed by the department, the same is hereby dismissed

ITA 707/JPR/2023[2017-18]Status: DisposedITAT Jaipur20 Jun 2024AY 2017-18

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri P. C. Parwal (C.A.)For Respondent: Shri Anoop Singh (Addl. CIT)

Section 12ASection 143(3)

Assistant Commissioner of Income Tax, Exemptions, Circle-1, Bengaluru vs. K J Foundation, Bengaluru

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

ITA 1105/BANG/2023[2017-18]Status: DisposedITAT Bangalore19 Jun 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assistant Commissionerof K.J. Foundation Income Tax 58/1 Thubarahalli Room No. 606, 6Th Floor Behind Sriram, Samruthi Vs. Unity Bldg. Annex Apartments, Whitefield Road P. Kalinga Rao Road Karnataka 500067 Karnataka 560027 Pan – Aabtk1178N (Appellant) (Respondent) Assessee By: Shri Satish R. Mody, Advocate Revenue By: Shri Vilas V. Shinde, Cit-Dr Date Of Hearing: 28.05.2024 Date Of Pronouncement: 19.06.2024 O R D E R Per: Soundararajan K., J.M. This Is An Appeal Filed By The Revenue Against The Order Passed By The National Faceless Appeal Centre, Delhi (‘Cit(A)’) Under Section 250 Of The Income Tax Act, 1961 (The Act) In Respect Of The Assessment Year (Ay) 2017-18. 2. The Revenue Has Raised The Following Grounds Of Appeal: - “1 The Order Of Learned Cit(A) Is Opposed To Facts & Circumstances Of The Case 2 The Cit(A) Has Erred In Observing That During The F.Y 2016- 17, The Assessee Had Paid Lease Rent Of Rs.9,58,28,710/-Only To Eduspark International Pvt. Ltd. Which Was A Specified Person U/S.13(3) Of The Income Tax Act, 1961 & That Such Payment

For Appellant: Shri Satish R. Mody, AdvocateFor Respondent: Shri Vilas V. Shinde, CIT-DR

Section 13Section 13(3)Section 250

Deputy Commissioner of Income Tax, Mumbai vs. Catholic Education Society, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3076/MUM/2023[2017-2018]Status: DisposedITAT Mumbai04 Jun 2024AY 2017-2018

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri K. Gopal/Ms. Neha ParanjpeFor Respondent: Shri H. M. Bhatt

Section 11Section 12ASection 13(1)(c)Section 13(3)Section 13(3)(c)Section 142(1)Section 143(3)Section 250

Central Academy Jodhpur Education Society, Jodhpur vs. Circle(Exemp.), Jaipur

In the result, this appeal of the assessee is allowed for statistical

ITA 543/JPR/2023[2017-18]Status: DisposedITAT Jaipur30 Oct 2023AY 2017-18

Bench: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri P.C. Parwal, CAFor Respondent: Shri Anoop Singh (Addl. CIT)

Section 11Section 11(5)Section 12ASection 13(1)(c)Section 13(3)Section 142(1)Section 143(1)Section 143(2)Section 164(2)Section 2

Mmti'S Education & Research Trust, Mumbai vs. ITO (E) 2 (1), Mumbai

In the result, the appeals of the assessee are In the result, the appeals of the assessee are allowed partly for allowed partly for statistical purposes

ITA 451/MUM/2019[2013-14]Status: DisposedITAT Mumbai23 Jun 2023AY 2013-14

Bench: Shri Vikas Awasthy () & Shri Om Prakash Kant () Assessment Year: 2011-2012 Mmti’S Education & Research Trust, The Dy. Director Of Income- New Excel House, 2Nd Floor, 41-B, Tax(Exemption)-I(1), Vs. Azad Nagar Road No. 2, Off. Veera 5Th Floor, Piramal Chambers, Desai Road, Behind Icici Bank, Parel, Lalbaug, Andheri (West), Mumbai-400012. Mumbai-400053. Pan No. Aabtm 2192 E Appellant Respondent Assessment Year: 2012-2013 Mmti’S Education & Research Trust, Ito(E)-2(1), New Excel House, 2Nd Floor, 41-B, Income-Tax Office, Piramal Vs. Azad Nagar Road No. 2, Off. Veera Chambers, Parel, Mumbai- Desai Road, Behind Icici Bank, 12. Andheri (West), Mumbai-400053. Pan No. Aabtm 2192 E Appellant Respondent Assessment Year: 2013-2014 Mmti’S Education & Research Trust, Ito(E)-2(1), Victor House, 2Nd Floor, End Of Veera Income-Tax Office, Piramal Vs. Desai Road, Next To Chitralekha Chambers, Parel, Mumbai- House, Andheri (W), 12. Mumbai-400053. Pan No. Aabtm 2192 E Appellant Respondent

For Appellant: Ms. Arati Vissanji, Adv &For Respondent: Mr. Manish Ajudiya

Section 13(1)(c)Section 13(3)

Mmtis Education and Research Trust, Mumbai vs. ITO (E) 2(1), Mumbai

In the result, the appeals of the assessee are In the result, the appeals of the assessee are allowed partly for allowed partly for statistical purposes

ITA 2974/MUM/2017[2012-13]Status: DisposedITAT Mumbai23 Jun 2023AY 2012-13

For Appellant: Ms. Arati Vissanji, Adv &For Respondent: Mr. Manish Ajudiya

Section 13(1)(c)Section 13(3)

Mmtis Eduction & Research Trust, Mumbai vs. DDIT (E) I(2), Mumbai

In the result, the appeals of the assessee are In the result, the appeals of the assessee are allowed partly for allowed partly for statistical purposes

ITA 5866/MUM/2015[2011-12]Status: DisposedITAT Mumbai23 Jun 2023AY 2011-12

For Appellant: Ms. Arati Vissanji, Adv &For Respondent: Mr. Manish Ajudiya

Section 13(1)(c)Section 13(3)

ITO (Exemption) 2(3), Mumbai vs. Smt. Rama Gulab Joshi, Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 3271/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 Mar 2023AY 2018-19

Bench: Shri B. R. Baskaran, Am & Ms. Kavitha Rajagopal, Jm Ito (Exemption)-2(3) Smt. Rama Gulab Joshi Mumbai Charitable Trust Chandan Niwas Rama Gulab Vs. Apartment, Tejpal Scheme, Main Road, Vile Parle (E), Mumbai-400 057 Pan/Gir No. Aabts 8453 N (Appellant) : (Respondent) Assessee By : None Revenue By : Smt. Mahita Nair Date Of Hearing : 20.03.2023 Date Of Pronouncement : 31.03.2023

For Appellant: NoneFor Respondent: Smt. Mahita Nair

Section 11Section 13(1)Section 13(1)(c)Section 13(2)(c)Section 13(3)Section 250

Seth Ramdas Nathubhai Dharmadaya Vishwasta Nidhi, Pune vs. Income-Tax Officer, (Exemptions) -1, Pune

ITA 928/PUN/2018[2011-12]Status: DisposedITAT Pune14 Dec 2022AY 2011-12

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhury"नधा"रण वष" / Assessment Year : 2011-12 Seth Ramdas Nathubhai Dharmadaya Vs. Ito Vishwasta Nidhi, (Exemptions)-1, C/O. Shah Khandelwal Jain & Pune Associates, Chartered Accountants, Level 3, Business Bay, Plot No.84, Wellesley Road, Near Rto, Pune 411 001 Pan : Aaatr6805N Appellant Respondent

Section 11Section 12ASection 13Section 13(2)Section 13(2)(c)

DDIT, Chennai vs. Sri Vekkaliamman Educational and Charitable Trust, Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 970/CHNY/2014[2010-11]Status: DisposedITAT Chennai14 Dec 2022AY 2010-11

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.: 970/Chny/2014 िनधा"रण वष" / Assessment Year: 2010-11 Deputy Director Of Income- M/S. Sri Vekkaliamman Tax (Exemptions)-Ii, V. Educational & Charitable Trust, Chennai – 34. No. 108, East Madha Street, Royapuram, Chennai – 600 013. [Pan: Aafts-7863-Q] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. P. Sajit Kumar, Jcit ""यथ" क" ओर से/Respondent By : Shri. G. Seetharaman, Ca सुनवाई क" तारीख/Date Of Hearing : 01.12.2022 घोषणा क" तारीख/Date Of Pronouncement : 14.12.2022

For Appellant: Shri. P. Sajit Kumar, JCITFor Respondent: Shri. G. Seetharaman, CA

Section 11Section 12ASection 13Section 13(1)(c)Section 13(3)

Prince Public School Society, New Delhi vs. ITO (E) Ward - 2(4), New Delhi

In the result, appeal of the assessee is allowed for statistical purposes

ITA 9281/DEL/2019[2015-16]Status: DisposedITAT Delhi07 Jun 2022AY 2015-16

Bench: Shri Kul Bharat

Section 11Section 13Section 13(2)(c)Section 13(3)Section 144

Deputy Commissioner of Income-Tax, (Exemption) Circle, Pune vs. Shri Balaji Society, Pune

In the result, the appeal of the Revenue is dismissed

ITA 2438/PUN/2017[2013-14]Status: DisposedITAT Pune21 Mar 2022AY 2013-14

For Appellant: Shri S.P. WalimbeFor Respondent: Shri Kishor Phadke

Section 11Section 12ASection 13(1)Section 13(1)(c)Section 13(3)Section 40A(2)