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
61
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
32
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
20
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
17
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
16
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
15
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
8
citing judgments
Aatman Foundation v. CIT(E)
174 Taxmann.com 1109 · 2025 · Reported
8
citing judgments
Mhalasakant Deosthan Mandir v. CIT
172 Taxmann.com 284 · 2025 · Reported
7
citing judgments
Concord of India Insurance Co. Ltd. v. Smt. Nirmla Devi
251 Taxmann 270 · 2017 · High Court
4
citing judgments

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

Ammakillikudu, Aluva vs. CIT (Exemption), Kochi

The appeal of the assessee is allowed for statistical purposes

ITA 890/COCH/2024[2025-26]Status: DisposedITAT Cochin10 Jun 2025AY 2025-26

Bench: Shri Inturi Rama Rao & Shri Sonjoy Sarmaassessment Years: 2025-26 Ammakillikudu Cit(Exemption), Kochi V. Door 345, Ward 20, Opposite Bsnl Office, Pipeline Road Aluva, Kochi – 683101. Pan : Aaita3263H. (Appellant) (Respondent) Appellant By : Shri Shinu J Pillai, Adv Respondent By : Shri Suresh Sivanandan Irs, Cit-Dr Date Of Hearing : 04.06.2025 Date Of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against An Order Dated 29.08.2024 Of The Cit(Exemption), Kochi [Hereinafter Referred To As ‘Cit(E)’] Denying The Assessee’S Registration U/S 12A Of The Act.

For Appellant: Shri Shinu J Pillai, AdvFor Respondent: Shri Suresh Sivanandan IRS, CIT-DR
Section 11Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)

Karnataka State Diploma in Nursing Examination Board, Bengauru vs. Commissioner of Income Tax(Exemptions), Bengaluru

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

ITA 161/BANG/2025[NA]Status: DisposedITAT Bangalore09 Jun 2025

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year : Na Karnataka State Diploma In Nursing Examination Board 1St Floor, Lbrary Block Bmrci Campus Cit (Exemptions) Vs. K.R. Road Bangalore Bangalore 560 002

For Appellant: Sri Prasanna N Urala, A.RFor Respondent: Ms. Srinandini Das, D.R
Section 12ASection 12A(1)(ac)

Punjab Pharmacy Council, Mohali vs. Commissioner of Income Tax Exemptions, Chandigarh

The appeal stand allowed in terms of our above order

ITA 543/CHANDI/2024[2024-25]Status: DisposedITAT Chandigarh02 Jun 2025AY 2024-25

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./ Ita No. 543/Chandi/2024 Punjab Pharmacy Council Cit (Exemptions) बनाम/ 2Nd Floor, Medical Education Bhawan Central Revenue Building, Vs. Sector 69, Chandigarh. 160062. Sector 17, Chandigarh-160017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaalp-1134-A (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Ajay Jain (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Smt. Kusum Bansal (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 15-04-2025 घोषणाकीतारीख /Date Of Pronouncement : 02-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aggrieved By Rejection Of An Application Seeking Registration U/S 12Ab Vide Impugned Order Dated 24-04-2024 As Passed By Learned Commissioner Of Income Tax (Exemptions), Chandigarh [Cit(E)], The Assessee Is In Further Appeal Before Us. 2. The Ld. Ar Advanced Arguments & Relied On Various Documents As Placed On Record To Assail Denial Of Registration To The Assessee. The Ld. Cit-Dr Also Advanced Arguments Supporting Rejection Of Application. Having Heard Rival Submissions & Upon Perusal Of Case Records, Our Adjudication Would Be As Under.

For Appellant: Sh. Ajay Jain (CA) – Ld. ARFor Respondent: Smt. Kusum Bansal (CIT) – Ld. DR
Section 12ASection 12A(1)(ac)Section 2(15)

Sinhagad Technical Education Society, Pune vs. PCIT(Central), Pune

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

ITA 419/PUN/2025[-]Status: DisposedITAT Pune29 May 2025

Bench: Shri R. K. Panda & Shri Vinay Bhamoresinhagad Technical Education Society Pcit (Central), Pune Smt. Khilare Marg, Off Karve Road, Vs. Pune – 411004 Pan: Aabts9900Q (Appellant) (Respondent) Assessee By : Shri Suhas Bora & Miss Sampada Ingale Department By : Shri Ajay Kumar Keshari - Cit Date Of Hearing : 25-03-2025 Date Of Pronouncement : 29-05-2025 O R D E R

For Appellant: Shri Suhas Bora and Miss Sampada IngaleFor Respondent: Shri Ajay Kumar Keshari - CIT
Section 11Section 12ASection 12A(1)(ac)Section 132

Virudhunagar S Vellaichamy Nadar Polytechnic Managing Board, Virudhunagar vs. CIT, Exemptions, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 156/CHNY/2025[-]Status: DisposedITAT Chennai26 May 2025

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita Nos.153, 154, 155 & 156/Chny/2025

For Appellant: Shri G. Akash, Advocate &For Respondent: Shri V. Justin, CIT
Section 12ASection 12A(1)(ab)Section 12A(1)(ac)

Virudhunagar S Vellaichamy Nadar Polytechnic Managing Board, Virudhunagar vs. CIT, Exemptions, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 155/CHNY/2025[-]Status: DisposedITAT Chennai26 May 2025

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita Nos.153, 154, 155 & 156/Chny/2025

For Appellant: Shri G. Akash, Advocate &For Respondent: Shri V. Justin, CIT
Section 12ASection 12A(1)(ab)Section 12A(1)(ac)

Virudhunagar S Vellaichamy Nadar Polytechnic Managing Board, Virudhunagar vs. CIT, Exmeptions, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 154/CHNY/2025[-]Status: DisposedITAT Chennai26 May 2025

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita Nos.153, 154, 155 & 156/Chny/2025

For Appellant: Shri G. Akash, Advocate &For Respondent: Shri V. Justin, CIT
Section 12ASection 12A(1)(ab)Section 12A(1)(ac)

Virudhunagar S Vellaichamy Nadar Polytechnic Managing Board, Virudhunagar vs. CIT, Exemptions, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 153/CHNY/2025[-]Status: DisposedITAT Chennai26 May 2025

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita Nos.153, 154, 155 & 156/Chny/2025

For Appellant: Shri G. Akash, Advocate &For Respondent: Shri V. Justin, CIT
Section 12ASection 12A(1)(ab)Section 12A(1)(ac)

Workers Education Society, Mumbai vs. CIT (Exemption), Mumbai

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

ITA 2051/MUM/2025[2025-26]Status: DisposedITAT Mumbai15 May 2025AY 2025-26

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Bhupendra Shah, A/RFor Respondent: Shri Arun Kati Datta, CIT, D/R
Section 12ASection 12A(1)(ac)

Income Tax Officer, Exemption Ward, Tirupati vs. Sri Sri Sri Paramapitha Sri Venkat Ramanachary Guruvu Charitable Trust, Dharmavaram

ITA 188/HYD/2025[2022-23]Status: DisposedITAT Hyderabad06 May 2025AY 2022-23

Bench: Us:

Section 11Section 12ASection 12A(1)(b)Section 139(1)Section 143(1)Section 143(1)(a)

Shree Hanuman Seva Mandal, Thane vs. CIT Exemption, Pune

In the result, appeal stands allowed for statistical purposes

ITA 253/MUM/2025[2022-23]Status: DisposedITAT Mumbai05 May 2025AY 2022-23

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: NoneFor Respondent: Shri Biswanath Das (CIT DR)
Section 12ASection 12A(1)(ac)

Sri Radha Govind Bhajan Kutir Seva Trust, Mathura vs. Commissioner of Income Tax (Exemption), Lucknow

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

ITA 109/AGR/2025[2025-26]Status: DisposedITAT Agra29 Apr 2025AY 2025-26

Bench: : Shri Sunil Kumar Singh & Shri Brajesh Kumar Singhassessment Year: 2025-26

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

Savita & Nirmala Vora Charitable Trust, Kolkata vs. CIT(Exemptions), Kolkata

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

ITA 290/KOL/2025[--]Status: DisposedITAT Kolkata21 Apr 2025

Bench: Shri George Mathan, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri Sunil Surana, ARFor Respondent: Shri
Section 12Section 12ASection 12A(1)(ac)Section 80G

Savita & Nirmala Vora Charitable Trust, Kolkata vs. CIT (Exemptions), Kolkata

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

ITA 289/KOL/2025[--]Status: DisposedITAT Kolkata21 Apr 2025

Bench: Shri George Mathan, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri Sunil Surana, ARFor Respondent: Shri
Section 12Section 12ASection 12A(1)(ac)Section 80G

The Islami Bathul Mal, Kilakarai vs. CIT, Exemptions, Chennai

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

ITA 142/CHNY/2025[-]Status: DisposedITAT Chennai21 Apr 2025

Bench: Shri Manu Kumar Giri & Shri S.R. Raghunatha

For Appellant: Shri Arjun Raj, AdvocateFor Respondent: Shri R. Clement Ramesh Kumar, CIT
Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)(i)

Purbottar Pradeshiya Marwari Sanmelan, Guwahati vs. CIT (Exemption), Kolkata

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

ITA 75/KOL/2025[2025-2026]Status: DisposedITAT Kolkata16 Apr 2025AY 2025-2026

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

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

I Progress Foundation Aurangabad, Aurangabad vs. CIT Exemption, Pune

ITA 1187/PUN/2024[Not Applicable]Status: DisposedITAT Pune11 Apr 2025

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.1187 & 855/Pun/2024 I Progress Foundation, 22/1, Mayur Complex, N-6, Cidco, Aurangabad-431001 Vs. Pan : Aabai4359L अपीलार्थी / Appellant Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Cit (Exemption), Pune प्रत्यर्थी / Respondent Shri Abhay Shastri Shri Amol Khairnar 14-01-2025 11-04-2025 आदेश / Order Per Astha Chandra, Jm : Two Appeals Filed By The Assessee Are Directed Against The Two Separate Order(S) Both Dated 05.03.2024 Of The Ld. Commissioner Of Income Tax (Exemption), Pune [“Cit(E)"] Whereby He Rejected The Application Of The Assessee Filed Before Him In Form No. 10Ab U/S 12A(1)(Ac)(Iii) & Section 80G(5)(Iii) Of The Income Tax Act, 1961 (The "Act") Filed On 30.09.2023. For The Sake Of Convenience Both The Appeals Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing
Section 12ASection 12A(1)(ac)Section 80G(5)(iii)

Shivchhatrapati Nagar Vikas Sanstha, Pune vs. CIT, Exemption, Pune

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

ITA 351/PUN/2025[-]Status: DisposedITAT Pune08 Apr 2025

Bench: Dr. Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No. 351/Pun/2025 धििाारण वषा / Assessment Year: Na Vs Cit, Exemption, Shivchhatrapati Nagar Vikas Sanstha, Pune A/P Alephata Junner, Pune-412411 Maharashtra Pan-Aamts6959E Appellant Respondent

For Appellant: NoneFor Respondent: Shri Ajay Kumar
Section 10Section 12ASection 80GSection 80G(5)

Ramratan Sarda Medical Help Society, Nagpur vs. CIT Exemption, Pune

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

ITA 29/NAG/2025[-]Status: DisposedITAT Nagpur21 Mar 2025

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Naresh JakhotiaFor Respondent: Shri Sandipkumar Salunke
Section 10Section 11Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

Indian Social Service, Warangal vs. ITO, Exemption Ward-1(4), Hyderabad

In the result, appeal of the assessee is allowed

ITA 1316/HYD/2024[2024-25]Status: DisposedITAT Hyderabad18 Mar 2025AY 2024-25

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri S.Rama Rao, ARFor Respondent: Ms.M.Narmada, CIT-DR
Section 12Section 12ASection 12A(1)(ac)Section 80G