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

Income-tax Act, 2025: ss.332–355

Section 12A(1)(ac)(iii) 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)(iii) is Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax (31 ITR 28), cited in 137 of the 1,616 judgments on BharatTax that turn on this section.

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

Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax
31 ITR 28 · 1957 · Supreme Court
137
citing judgments

Expenditure incurred for commercial expediency, even without a direct or immediate benefit but indirectly facilitating business, is deductible as laid out wholly and exclusively for trade. The scope of reference jurisdiction under Section 66 is limited to questions of law, allowing challenges to Tribunal findings of fact only if they are perverse, unreasonable, or lack evidence.

Ananda Social and Educational Trust v. CIT
426 ITR 340 · 2020 · Supreme Court
116
citing judgments

For registration under Section 12AA, the Commissioner (Exemptions) must examine the objects of the trust and the genuineness of its proposed activities, even if the trust has not yet commenced actual charitable activities or incurred expenditure.

CIT v. Dawoodi Bohra Jamat
364 ITR 31 · 2014 · Supreme Court
83
citing judgments

A trust's objects, even if based on religious tenets, can qualify as charitable for tax exemptions if its benefits are not exclusively restricted to a particular religious community or caste.

CIT v. Parma Nand
268 ITR 172 · 2004 · High Court
81
citing judgments

Whether there was sufficient cause for delay in making applications for registration under section 12A and 80G is always a question of fact, and contumacious conduct by the assessee must be established for levying penalty under section 271C for non-deduction of TDS.

Trustees of Shri Kot Hindu Stree Mandal v. CIT
209 ITR 396 · 1994 · High Court
80
citing judgments

Membership fees and subscription amounts received by a trust or society from its members are not considered 'voluntary contributions' under Section 12 of the Income-tax Act, as they are not gratuitous payments or gifts but are made with consideration.

Udhavdas Kewalram v. CIT
66 ITR 462 · 1967 · Supreme Court
59
citing judgments

The Income-tax Appellate Tribunal performs a judicial function under the Indian Income-tax Act, invested with authority to finally determine all questions of fact. When deciding an appeal, the Tribunal must consider all material facts with due care, record findings on all contentions, and maintain a judicial balance between the revenue and taxpayer claims. The power to condone delay by enacting section 5 of the Limitation Act of 1963 enables courts, including the Tribunal, to do substantial justice, with "sufficient cause" being an elastic expression.

CIT v. Dawoodi Bohara Jamat
43 Taxmann.com 243 · 2014 · Supreme Court
57
citing judgments

Section 13(1)(b) of the Income-tax Act applies to composite trusts that engage in both religious and charitable activities, meaning such trusts may be excluded from exemption under Section 11.

Ahmedabad Rana Caste Association v. CIT
82 ITR 704 · 1971 · Supreme Court
51
citing judgments

An intention to benefit a section of the public, as distinguished from a special individual, is sufficient for a trust to be considered for charitable registration and exemptions. This applies even if the beneficiaries belong to a specific caste, community, or professional group, allowing the trust to qualify as serving a general public utility under Section 2(15).

Shree Swaminarayan Gadi Trust v. CIT
162 Taxmann.com 772 · 2024 · Reported
44
citing judgments

Where a trust application has a curable defect, the assessee should be allowed an opportunity to explain and rectify the defect before the CIT (Exemption). The appellate tribunal may allow the appeal and direct the CIT to reconsider the application.

Ram Nath Sahu & Others v. Gobardhan Sao and Others
3 SCC 195 · 2002 · Reported
43
citing judgments

The expression "sufficient cause" for condonation of delay under Section 5 of the Limitation Act or similar provisions must receive a liberal construction to advance substantial justice. Courts should avoid a pedantic or hyper-technical approach, generally accepting explanations unless negligence, inaction, or lack of bona fides is evident.

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

Radisson India Charitable Foundation, Gurgaon vs. CIT (Exemptins), Chandigarh

The appeals of the assessee are treated as allowed for statistical purposes

ITA 345/CHANDI/2023[2023-24]Status: DisposedITAT Chandigarh27 Feb 2024AY 2023-24

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadavआयकर अपील सं./Ita Nos. 344 & 345/Chd/2023 "नधा"रण वष" / Assessment Year : 2023-24 Radisson India Charitable Foundation, Vs The Cit (Exemption), 1St Floor, Block-A Chimes, Chandigarh. Plot No.61, Sector 44, Gurgaon. "थायीलेखासं./Pan No: Aaetr3910L अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee By: Shri Pradeep Dinodia, Ca राज"व क" ओर से/ Revenue By : Smt. Kusum Bansal, Cit, Dr सुनवाई क" तार"ख/Date Of Hearing : 14.02.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 27.02.2024 Hybrid Hearing आदेश/Order Per Sanjay Garg: The Present Appeal ( Ita 344/Chd/2023) Has Been Preferred By The Assessee Foundation Agitating Against The Action Of The Ld. Commissioner Of Income Tax (Exemptions), Chandigarh [Hereinafter Referred To As ‘Ld.Cit(E)’] Dated 29.03.2023 In Rejecting The Application Of The Assessee For Final Registration U/S 12A(1)(Ac) (Iii) Of The Income Tax Act, 1961 (In Short ‘The Act) Whereas Ita No. 345/Chd/2023 Is Relating To Rejection Of The Application Of The Assessee For

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 12ASection 12A(1)(ac)Section 80G(5)

Radisson India Charitable Foundation, Gurgaon vs. CIT (Exemptins), Chandigarh

The appeals of the assessee are treated as allowed for statistical purposes

ITA 344/CHANDI/2023[2023-24]Status: DisposedITAT Chandigarh27 Feb 2024AY 2023-24

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadavआयकर अपील सं./Ita Nos. 344 & 345/Chd/2023 "नधा"रण वष" / Assessment Year : 2023-24 Radisson India Charitable Foundation, Vs The Cit (Exemption), 1St Floor, Block-A Chimes, Chandigarh. Plot No.61, Sector 44, Gurgaon. "थायीलेखासं./Pan No: Aaetr3910L अपीलाथ"/Appellant ""यथ"/Respondent "नधा"रती क" ओर से/Assessee By: Shri Pradeep Dinodia, Ca राज"व क" ओर से/ Revenue By : Smt. Kusum Bansal, Cit, Dr सुनवाई क" तार"ख/Date Of Hearing : 14.02.2024 उदघोषणा क" तार"ख/Date Of Pronouncement : 27.02.2024 Hybrid Hearing आदेश/Order Per Sanjay Garg: The Present Appeal ( Ita 344/Chd/2023) Has Been Preferred By The Assessee Foundation Agitating Against The Action Of The Ld. Commissioner Of Income Tax (Exemptions), Chandigarh [Hereinafter Referred To As ‘Ld.Cit(E)’] Dated 29.03.2023 In Rejecting The Application Of The Assessee For Final Registration U/S 12A(1)(Ac) (Iii) Of The Income Tax Act, 1961 (In Short ‘The Act) Whereas Ita No. 345/Chd/2023 Is Relating To Rejection Of The Application Of The Assessee For

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 12ASection 12A(1)(ac)Section 80G(5)

Ramkrishna Mandal Institute of Education., Howrah vs. CIT(Exemptions), Kolkata.

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

ITA 924/KOL/2023[00]Status: DisposedITAT Kolkata20 Feb 2024

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.924/Kol/2023 Ramkrishna Mandal Institute Of Education..............…...……………....Appellant At Rashpur, Amta-I, Rashpur B.O. Howrah, West Bengal, India - 711401 [Pan:Aabtr9493B] Vs. Cit (Exemptions, Kolkata…...…..........................................…..…..... Respondent Appearances By: Shri P. K. Roy, Ar, Appeared On Behalf Of The Appellant. Shri Rakesh Kumar Das, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 20, 2024 Date Of Pronouncing The Order : February 20, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Filed By The Assessee Against The Rejection Of His Application For Final Registration U/S 12A(1)(Ac)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Ld. Cit(Exemptions) Has Rejected The Application Holding The Same To Be Prima Facie Not Maintainable Being Premature. The Ld. Cit(Exemptions) Observed That The Assessee Earlier Was Granted Provisional Registration In Form 10Ac Which Was Valid Till A.Y 2026-27. He, Therefore, Held That The Application Of The Assessee Being Premature Was Not Maintainable & Rejected The Same. Being Aggrieved By The Above Order Of The Ld. Cit(Exemptions), The Assessee Has Come In Appeal Before Us.

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

Rayavaram Sri Muthuimariamman Charitale Trust, Pudukottai vs. ITO, Exemptions Ward, Trichy

The appeals stand dismissed as withdrawn

ITA 849/CHNY/2023[-]Status: DisposedITAT Chennai06 Feb 2024

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.809/Chny/2023 Doctors Educational & Charitable Trust Ito बनाम/ 103/214, South Iv Street, Exemptions Ward, Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatd-9346-E (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2.आयकरअपील सं./ Ita No.810/Chny/2023 Saa Charitable Trust Ito बनाम 3756M, South 3Rd Street, Exemptions Ward, / Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadts-9844-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 3.आयकरअपील सं./ Ita No.828/Chny/2023 Kamala Chidambaram Trust Ito बनाम 1, Nagappa Illam Thirumayam Taluk, Exemptions Ward, / Vs. Rangiem Post, Pudukottai-622 409. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabtk-9711-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4.आयकरअपील सं./ Ita No.849/Chny/2023 Rayavaram Sri Muthumariamman Ito बनाम Charitable Trust Exemptions Ward, 702, Palaiyur Veedhi Old Post Office Trichy. / Vs. Building, Rayavaram, Pudukottai-622 506. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aactr-3006-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. Sree Lakshmi Valli (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri R. Clement Ramesh Kumar(Cit)- Ld. Dr

For Appellant: Ms. Sree Lakshmi Valli (Advocate)-Ld. ARFor Respondent: Shri R. Clement Ramesh Kumar(CIT)- Ld. DR
Section 12A(1)(ac)

Kamala Chidambaram Trust, Pudukkottai vs. ITO, Exemptions Ward, Trichy

The appeals stand dismissed as withdrawn

ITA 828/CHNY/2023[--]Status: DisposedITAT Chennai06 Feb 2024

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.809/Chny/2023 Doctors Educational & Charitable Trust Ito बनाम/ 103/214, South Iv Street, Exemptions Ward, Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatd-9346-E (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2.आयकरअपील सं./ Ita No.810/Chny/2023 Saa Charitable Trust Ito बनाम 3756M, South 3Rd Street, Exemptions Ward, / Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadts-9844-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 3.आयकरअपील सं./ Ita No.828/Chny/2023 Kamala Chidambaram Trust Ito बनाम 1, Nagappa Illam Thirumayam Taluk, Exemptions Ward, / Vs. Rangiem Post, Pudukottai-622 409. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabtk-9711-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4.आयकरअपील सं./ Ita No.849/Chny/2023 Rayavaram Sri Muthumariamman Ito बनाम Charitable Trust Exemptions Ward, 702, Palaiyur Veedhi Old Post Office Trichy. / Vs. Building, Rayavaram, Pudukottai-622 506. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aactr-3006-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. Sree Lakshmi Valli (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri R. Clement Ramesh Kumar(Cit)- Ld. Dr

For Appellant: Ms. Sree Lakshmi Valli (Advocate)-Ld. ARFor Respondent: Shri R. Clement Ramesh Kumar(CIT)- Ld. DR
Section 12A(1)(ac)

Saa Charitable Trust, ITO, Exemptions Ward vs. ITO, Exemptions Ward, Trichy

The appeals stand dismissed as withdrawn

ITA 810/CHNY/2023[-]Status: DisposedITAT Chennai06 Feb 2024

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.809/Chny/2023 Doctors Educational & Charitable Trust Ito बनाम/ 103/214, South Iv Street, Exemptions Ward, Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatd-9346-E (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2.आयकरअपील सं./ Ita No.810/Chny/2023 Saa Charitable Trust Ito बनाम 3756M, South 3Rd Street, Exemptions Ward, / Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadts-9844-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 3.आयकरअपील सं./ Ita No.828/Chny/2023 Kamala Chidambaram Trust Ito बनाम 1, Nagappa Illam Thirumayam Taluk, Exemptions Ward, / Vs. Rangiem Post, Pudukottai-622 409. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabtk-9711-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4.आयकरअपील सं./ Ita No.849/Chny/2023 Rayavaram Sri Muthumariamman Ito बनाम Charitable Trust Exemptions Ward, 702, Palaiyur Veedhi Old Post Office Trichy. / Vs. Building, Rayavaram, Pudukottai-622 506. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aactr-3006-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. Sree Lakshmi Valli (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri R. Clement Ramesh Kumar(Cit)- Ld. Dr

For Appellant: Ms. Sree Lakshmi Valli (Advocate)-Ld. ARFor Respondent: Shri R. Clement Ramesh Kumar(CIT)- Ld. DR
Section 12A(1)(ac)

Doctors Educational and Charitable Trust, Pudukottai vs. ITO, Exemptions Ward, Trichy

The appeals stand dismissed as withdrawn

ITA 809/CHNY/2023[-]Status: DisposedITAT Chennai06 Feb 2024

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1.आयकरअपील सं./ Ita No.809/Chny/2023 Doctors Educational & Charitable Trust Ito बनाम/ 103/214, South Iv Street, Exemptions Ward, Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatd-9346-E (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2.आयकरअपील सं./ Ita No.810/Chny/2023 Saa Charitable Trust Ito बनाम 3756M, South 3Rd Street, Exemptions Ward, / Vs. Pudukottai-622 001. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadts-9844-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 3.आयकरअपील सं./ Ita No.828/Chny/2023 Kamala Chidambaram Trust Ito बनाम 1, Nagappa Illam Thirumayam Taluk, Exemptions Ward, / Vs. Rangiem Post, Pudukottai-622 409. Trichy. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabtk-9711-D (अपीलाथ"/Appellant) : (" थ" / Respondent) & 4.आयकरअपील सं./ Ita No.849/Chny/2023 Rayavaram Sri Muthumariamman Ito बनाम Charitable Trust Exemptions Ward, 702, Palaiyur Veedhi Old Post Office Trichy. / Vs. Building, Rayavaram, Pudukottai-622 506. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aactr-3006-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. Sree Lakshmi Valli (Advocate)-Ld. Ar " थ"कीओरसे/Respondent By : Shri R. Clement Ramesh Kumar(Cit)- Ld. Dr

For Appellant: Ms. Sree Lakshmi Valli (Advocate)-Ld. ARFor Respondent: Shri R. Clement Ramesh Kumar(CIT)- Ld. DR
Section 12A(1)(ac)

Diamond Cares, Kolkata vs. CIT(Exemption), Kolkata

In the result, appeal of the assessee is allowed

ITA 877/KOL/2023[2023-24]Status: DisposedITAT Kolkata10 Jan 2024AY 2023-24

Bench: Shri Sanjay Garg, Hon’Ble & Shri Girish Agrawal, Hon’Blei.T.A. No. 877/Kol/2023 Assessment Year: 2023-24 Diamond Cares Commissioner Of Income Tax C/O M/S. Salarpuria Jajodia & Co. Vs (Exemption), Kolkata 7, C.R. Avenue 3Rd Floor Kolkata - 700072 [Pan : Aadtd7296A] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Siddharth Jhajharia, Fca Revenue By : Shri Abhijit Kundu, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 12/12/2023 घोषणा क" तारीख/Date Of Pronouncement : 10/01/2024 आदेश/O R D E R Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Exemption), [Hereinafter The “Ld. Cit(E)”] Dt. 28/06/2023. 2. The Assessee Is This Appeal Has Agitated Against The Action Of The Ld. Cit(E) In Rejecting The Application Of The Assessee For Final Approval U/S 80G(5)(Iii) Of The Income Tax Act, 1961 (In Short ‘The Act’). 3. Brief Facts Of The Case Are That The Assessee Trust Has Already Been Duly Registered U/S 12A(1)(Ac)(Iii) Of The Act For Assessment Year 2023-24 To 2027-28. The Assessee Trust Has Also Applied For Provisional Approval U/S 80G(5)(Iv) Of The Act Which Was Granted By The Ld. Cit(E) For The Period From 26/05/2022 To Assessment Year 2025-26. Subsequently, The Assessee Moved An Application For Final Approval U/S 80G(5)(Iii) Of The Act On 30/12/2022. However, The Ld. Cit(E) Has Rejected The Said Application. The Ld. Cit(E) In This Respect Referred To

For Appellant: Shri Siddharth Jhajharia, FCAFor Respondent: Shri Abhijit Kundu, CIT, D/R
Section 12ASection 12A(1)(ac)Section 80G(5)Section 80G(5)(iii)Section 80G(5)(iv)