What is the leading case on Section 12A(1)(ac)(i) of the Income Tax Act?

Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu ( (172 ITR 698) is the decision most relied on for Section 12A(1)(ac)(i), cited in 61 judgments. Income received by a trust from sources like extra fees can be taxed at the maximum marginal rate, while other income remains eligible for exemption under Section 11 of the Income Tax Act.

Which cases are most cited on Section 12A(1)(ac)(i)?

Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu ( (172 ITR 698) — 61 citing judgments; Cruch of South India Trust Association v. Telugu Church Council (2 SCC 520) — 32 citing judgments; 1109 (Ahmedabad-Trib.), Gandhinagar Ayyapa Pooja Samiti v. CIT(E) (170 Taxmann.com 797) — 20 citing judgments; CIT v. Birla Janahit Trust (208 ITR 372) — 17 citing judgments; CIT v. Ganga Charity Trust Fund (162 ITR 612) — 16 citing judgments.

How many judgments are there on Section 12A(1)(ac)(i)?

BharatTax indexes 166 ITAT, High Court and Supreme Court judgments that turn on Section 12A(1)(ac)(i) of the Income Tax Act, 1961.

Section 12A(1)(ac)(i) of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 12A(1)(ac)(i) falls under section 12A 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 12A(1)(ac)(i) is Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu ( (172 ITR 698), cited in 61 of the 166 judgments on BharatTax that turn on this section.

Leading authorities on Section 12A(1)(ac)(i)

Trust (249 ITR 533) (Bom.) 3. CIT vs. Red Rose School (163 Taxman 19 (All.) 4. DIT(E) v. Alarippu (

172 ITR 698 · 1988 · High Court

citing judgments

Income received by a trust from sources like extra fees can be taxed at the maximum marginal rate, while other income remains eligible for exemption under Section 11 of the Income Tax Act.

Cruch of South India Trust Association v. Telugu Church Council

2 SCC 520 · 1996 · Reported

citing judgments

While the strict rule of res judicata does not apply to income tax proceedings, the revenue cannot adopt a contradictory stance in subsequent years if the facts and circumstances remain identical. Decisions made in earlier years should be respected, and the position of the tax authorities should not be arbitrarily changed.

1109 (Ahmedabad-Trib.), Gandhinagar Ayyapa Pooja Samiti v. CIT(E)

170 Taxmann.com 797 · 2025 · Reported

citing judgments

The Commissioner of Income Tax (Exemptions) cannot reject an application for registration under section 12A(1)(ac)(i) solely on technical grounds without considering the genuineness of the trust's activities.

CIT v. Birla Janahit Trust

208 ITR 372 · 1994 · High Court

citing judgments

Expenditure on salaries and miscellaneous expenses for carrying out the trust's objectives is considered an application of income for charitable purposes. Liabilities for employee benefits, such as gratuity and leave encashment, are accrued liabilities even if payable in the future.

CIT v. Ganga Charity Trust Fund

162 ITR 612 · 1986 · High Court

citing judgments

Payment of taxes under the Voluntary Disclosure of Income Scheme (VDIS) is to be treated as an application of income for trust purposes. The Gujarat High Court in CIT v. Ganga Charity Trust Fund (1986) 162 ITR 612 (Guj) followed the Madras High Court in Commissioner of Income Tax v. Janaki Ammal Ayya Nadar Trust (1985) 153 ITR 159 and the Andhra Pradesh High Court in Munna Lal and Sons v. CIT (1991) 187 ITR 378.

CIT v. Hindustan Charity Trust

139 ITR 913 · 1983 · High Court

citing judgments

Donations made by a trust to another charitable trust are considered an application of income for charitable purposes.

Guru Gobind Singh Educational Society v. CIT

118 ITD 207 · 2009 · ITAT

citing judgments

Aatman Foundation v. CIT(E)

174 Taxmann.com 1109 · 2025 · Reported

citing judgments

Mhalasakant Deosthan Mandir v. CIT

172 Taxmann.com 284 · 2025 · Reported

citing judgments

Concord of India Insurance Co. Ltd. v. Smt. Nirmla Devi

251 Taxmann 270 · 2017 · High Court

citing judgments

Judgments on Section 12A(1)(ac)(i)

Sacred Heart Educational Trust, Chennai vs. ITO, Exemptions Ward-2, Chennai

In the result, both the appeals filed by the assessee are allowed

ITA 2713/CHNY/2025[2022-23]Status: DisposedITAT Chennai26 Nov 2025AY 2022-23

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Ms. Joshita Jothi, C.AFor Respondent: Shri R. Raghupathy, Addl. CIT

Section 11Section 12ASection 12A(1)(ac)Section 143(1)

Virmani Foundation, Rajkot vs. CIT (Exemption), Ahmedabad, Rajkot

ITA 474/RJT/2025[2023-24]Status: DisposedITAT Rajkot24 Nov 2025AY 2023-24

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

For Appellant: Shri Sunny Mehta, ld.ARFor Respondent: Shri Sanjay Punglia, CIT.DR

Section 12ASection 12A(1)Section 12A(1)(ac)Section 12A(1)(b)Section 80Section 80G(5)Section 80G(5)(iii)Section 80G(5)(iv)

Jyot Foundation-Rajkot, Rajkot vs. CIT (Exemption), Ahmedabad, Rajkot

ITA 468/RJT/2025[2023-24]Status: DisposedITAT Rajkot24 Nov 2025AY 2023-24

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

For Appellant: Shri Sunny Mehta, ld.ARFor Respondent: Shri Sanjay Punglia, CIT.DR

Section 12ASection 12A(1)Section 12A(1)(ac)Section 12A(1)(b)Section 80Section 80G(5)Section 80G(5)(iii)Section 80G(5)(iv)

Vaghmi Foundation, Pune vs. CIT(E), Pune

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

ITA 1978/PUN/2025[NA]Status: DisposedITAT Pune24 Nov 2025

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपऩल सं. / Ita No.1977 & 1978/Pun/2025 निर्धारण वषा / Assessment Year: - Vaghmi Foundation, V The Cit Exemption, Property No.6, City Corner, S. Pune. Tingre Nagar, Pune – 411032. Maharashtra. Pan: Aagcv7386P Appellant/ Assessee Respondent / Revenue Assessee By Shri Kishor B Phadke Revenue By Shri Amit Bobde – Cit(Dr) Date Of Hearing 20/11/2025 Date Of Pronouncement 24/11/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld.Commissioner Of Income Tax(Exemption), Pune Rejecting The Application For Grant Of Registration U/S.12A R.W.S 12Ab & 80G(5) Of The Income Tax Act, 1961(Hereinafter Referred To As „The Act‟) Dated 30.09.2022 & 22.11.2024 Respectively. For The Sake Of Convenience, These Two Appeals Were Heard Together & Are Being Disposed Of By This Common Order. We Treat The Appeal In

Section 12ASection 12A(1)(ac)Section 80G

Vaghmi Foundation, Pune vs. CIT(E), Pune

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

ITA 1977/PUN/2025[NA]Status: DisposedITAT Pune24 Nov 2025

Section 12ASection 12A(1)(ac)Section 80G

Ram Saran Das Kishori Lal Charitable Trust, Delhi vs. CIT(Exemption), Delhi

The appeal of the assessee is allowed

ITA 5290/DEL/2024[-]Status: DisposedITAT Delhi12 Nov 2025

Bench: Shri S Rifaur Rahman, Accountnat Member & Shri Anubhav Sharma[Assessment Year: -------] Ram Saran Das Kishori Lal Commissioner Of Income Tax Charitable Trust, (Exemption), Room No.24.05, E-2 Block, 24Th Floor, Civic Centre, A-27, Friends Colony East, Vs New Delhi-110001 New Delhi-110002 Pan-Aaatr0783P Appellant Respondent Appellant By Shri Ajay Vohra, Sr. Adv. & Shri Aditya Vohra, Adv. Shri Arpit Goyal, Adv. Respondent By Shri Amit Jain, Cit-Dr Date Of Hearing 09.09.2025 Date Of Pronouncement 12.11.2025

Section 127(2)Section 12ASection 2(15)

Agrasen Medical Relief & Research Society, Jaipur vs. ITO(E), Ward-1, Jaipur

In the result, the appeal of the assessee is allowed

ITA 1026/JPR/2025[2016-17]Status: DisposedITAT Jaipur30 Oct 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM आयकरअपीलसं./ITA No. 1026/JPR/2025 निर्धरणवर्ष / AssessmentYear : 2016-17 Agrasen Medical Relief & Research Society Central Spine, Sector -7, Vidhyadhr Nagar Jaipur - 302 039 (Raj) बनाम Vs. अपीलार्थी / Appellant स्थायीलेखा सं. / जीआईआरसं./PAN/GIR No.: AAATA 7540F The ITO (E) Ward - 1 Jaipur प्रत्यर्थी / Respondent निर्धारिती की ओरसे / Assesseeby :Shri P.C.Parwal, CA राजस्व की ओरसे /Revenue by: Shri Gautam Singh Choudh

For Appellant: Shri P.C.Parwal, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT-DR

Section 11Section 12ASection 12A(1)(ac)Section 143(3)Section 194JSection 2(15)Section 80G

Maharashtra Industrial Development Corporation, Mumbai vs. Commissioner of Income-Tax (Exemptions), Mumbai

Accordingly, Ground No.3 raised by the Assessee is allowed for statistical purposes while all the other Grounds raised by the Assessee are dismissed having being rendered infructuous

ITA 6461/MUM/2025[2026-27]Status: DisposedITAT Mumbai29 Oct 2025AY 2026-27

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri V. Sridharan &For Respondent: Shri Paresh Deshpande

Section 12ASection 143(3)Section 2(15)

D L Agarwala Charitable Trust, North Twenty Four Parganas vs. CIT (Exemption), Kolkata

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

ITA 556/KOL/2025[---]Status: DisposedITAT Kolkata27 Oct 2025

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.555&556/Kol/2025 D L. Agarwala Charitable Trust……………..……….……….……….……Appellant 336, Canal Street, Sreebhumi S O Lake Town, North 24 Parganas, W.B- 700048.. [Pan: Aabtd5563G] Vs. Cit (Exemption), Kolkata………………………………….....……...…..…..Respondent Appearances By: Shri Raju Mukherjee, Fcs & N. D Mimani, Fca Appeared On Behalf Of The Appellant. Shri Raja Sengupta, Cit- Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 16, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: Both The Present Appeals Have Been Preferred By The Assessee Against Separate Orders Both Dated 23.03.2012 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(E)’] Rejecting The Separate Applications Filed In Form 10Ab For Final Approval As Per The Provisions Of Sections 12A(1)(Ac)(Iii) & 80G(5)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since Both The Appeals Relate To The Same Assessee & Arise From The Final Registration U/S 12A Of The Act Which Is Compulsory For Getting Subsequent Registration U/S 80G Of The Act Which Are Interconnected In Both The Appeals & Therefore, These Appeals Were Heard Together & We Are Going To Dispose Of These Appeals By Passing A Consolidated Order. 2. Both The Appeals Have Been Filed By The Assessee With Delays Of 21 Days. The Assessee Has Filed Affidavits For Condonation Of The Delays.

Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

D L Agarwala Charitable Trust, North Twenty Four Parganas vs. CIT (Exemption), Kolkata

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

ITA 555/KOL/2025[---]Status: DisposedITAT Kolkata27 Oct 2025

Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

Sai Disha Samjik Vikas Sanstha, Aurangabad vs. The Commissioner of Income Tax (Exemption), Pune

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

ITA 2558/PUN/2024[2024-25]Status: DisposedITAT Pune14 Oct 2025AY 2024-25

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2558/Pun/2024 Assessment Year : 2024-25

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde

Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)

Roger Foundation, Agra vs. Commissioner of Income Tax ( Exemption) Agra, Agra

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

ITA 294/AGR/2025[2024-25]Status: DisposedITAT Agra13 Oct 2025AY 2024-25

Bench: Shri Sunil Kumar Singh & Shri Brajesh Kumar Singh

Section 12ASection 12A(1)(ac)

Hijaldiha Vivekananda Seva Samity, Hijaldiha vs. CIT(Exemptions), Kolkata

Appeal of the assessee is dismissed

ITA 1177/KOL/2025[----]Status: DisposedITAT Kolkata13 Oct 2025

Bench: 01.04.2021. Being An Old Registered Trust Assessee Has Filed Application For Registration U/S.

Section 124(1)(ac)Section 12ASection 12A(1)(ac)Section 2

Sankalp Foundation vs. CIT(E), Jaipur

Appeal is disposed of, for statistical purpose, and with

ITA 1006/JPR/2025[NA]Status: DisposedITAT Jaipur07 Oct 2025

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

For Appellant: Shri P.C. Parwal, C.AFor Respondent: Mrs. Alka Gautam, CIT-DR

Section 12A(1)(ac)Section 80G(5)Section 80G(5)(iii)Section 80G(5)(iv)

Punjab Heritage & Tourism Promotion Board, Chandigarh vs. CIT Exemptions, Chandigarh

The appeal stand allowed in terms of our above order

ITA 1126/CHANDI/2024[2024-25]Status: DisposedITAT Chandigarh07 Oct 2025AY 2024-25

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं. / Ita No.1126/Chandi/2024 Punjab Heritage & Tourism Promotion Board Cit (Exemptions) C/O Rajiv Goel & Associates बनाम/ Aaykar Bhawan. Sco 823-824,Sector 22-A Sector 17-E Vs. Chandigarh-160022. Chandigarh-160017 "ायीलेखासं./जीआइआरसं./Pan/Gir No.Aaatp-6562-G (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Dhruv Goel (Ca) -Ld. Ar ""थ"कीओरसे/Respondent By : Smt. Kusum Bansal (Cit) (Virtual) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 17-09-2025 घोषणाकीतारीख /Date Of Pronouncement : 07/10/2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aggrieved By Cancellation Of Registrations U/S 12A As Well As U/S 12A(1)(Ac)(I) Vide Order Dated 04-11-2024 Of Ld. Commissioner Of Income Tax (Exemption), Chandigarh, [Cit(E)], The Assessee Is In Further Appeal Before Us With Following Grounds Of Appeal: - 1. That The Learned Cit(E) Has Erred In Law & On Facts In Initiating Proceedings For Cancellation Of Registration U/S 12A & Observing That Assessee Had Committed A Specified Violation As Defined In Section 12Ab(4)(Ii). 2. That The Learned Cit(E) Has Erred In Law & On Facts In Cancelling The Registration U/S 12A Of The Assessee As Per Provisions Of Section 12Ab(4)(Ii) Of The Act. 3. That The Learned C1T(E) Has Erred In Law & On Facts In Cancelling The Registration U/S 12A With Retrospective Effect From Ay 2010-11 Onwards.

For Appellant: Shri Dhruv Goel (CA) -Ld. ARFor Respondent: Smt. Kusum Bansal (CIT) (Virtual) – Ld. DR

Section 12ASection 12A(1)(ac)Section 148ASection 2(15)

Sri Maisamma Devatna Ammavari Devasthanam, Mahabubnagar vs. CIT(Exemption), Hyderabad

In the result, appeals filed by the assessee are allowed for statistical purposes

ITA 1050/HYD/2025[2025-26]Status: DisposedITAT Hyderabad10 Sept 2025AY 2025-26

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.S.No Ita No Appellant Respondent 1 1043/Hyd/2025 Sri Kurumurthy Swamy Cit (Exemptions) Devasthanam, Hyderabad Mahbubnagar Pan: Aahts2887G 2 1044/Hyd/2025 -Do- -Do- 3 1049/Hyd/2025 Sri Maisamma Devatna -Do- Ammavari Devasthanam Mahbubnagar Pan:Aamts0357A 4 1050/Hyd/2025 -Do- -Do-

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: : Dr. Narender Kumar Naik, CIT(DR)

Section 12ASection 80G