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

Income-tax Act, 2025: ss.332–355

Section 12A(1)(ac) 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) is Keshav Mills Co. Ltd. v. CIT (56 ITR 365), cited in 42 of the 537 judgments on BharatTax that turn on this section.

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

Keshav Mills Co. Ltd. v. CIT
56 ITR 365 · 1965 · Supreme Court
42
citing judgments

An appellate authority has the jurisdiction to admit additional evidence if it is necessary for a complete and effective adjudication of the matter.

Oxford Academy for Career Development v. Chief CIT
315 ITR 382 · 2009 · High Court
37
citing judgments

The Commissioner of Income Tax (CIT) has no power to cancel registration granted under Section 12A of the Income Tax Act retrospectively, especially when there is no express provision in the Act for such cancellation and the order is quasi-judicial in nature.

Neelam Cable Manufacturing Co. v. ACIT
63 ITD 1 · 1997 · ITAT
29
citing judgments

Expenses incurred for services rendered in relation to a let-out property are deductible when computing the annual value of the property under Section 23 of the Income-tax Act, 1961.

DIT (Exemption) v. Khar Gymkhana
385 ITR 162 · 2016 · High Court
27
citing judgments

The cancellation of registration under section 12AA(3) is limited to circumstances specified in the section. Income and application of funds issues are matters of assessment, not grounds for cancellation under section 12AA(3).

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.

Mohammed Ibrahim Riza v. CIT
65 ITR 611 · 1967 · Supreme Court
20
citing judgments

A trust or institution is considered a valid charity if its primary or dominant purpose is charitable, even if it has other non-charitable objects that are merely ancillary or incidental to the main charitable purpose.

Director of Income-tax (Exemptions), Mumbai v. Shri Vile Parle Kelavani Mandal
58 Taxmann.com 288 · 2015 · High Court
19
citing judgments

Depreciation claimed on an asset acquired from trust income is not a double deduction. It is a permissible deduction representing the use of the asset, distinct from the earlier claim towards application of funds for acquisition.

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
Vananchal Kelavani Trust v. CIT(Exemption)
159 Taxmann.com 634 · 2024 · ITAT
6
citing judgments

Judgments on Section 12A(1)(ac)

Inspira Global Foundation, Mumbai vs. Commissioner of Income Tax (Exemptions), Mumbai

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

ITA 2369/MUM/2026[2026-2027]Status: DisposedITAT Mumbai20 May 2026AY 2026-2027

Bench: Ms. Kavitha Rajagopal & Shri Makarand Vasant Mahadeokar1. Ita No. 2488/Mum/2026 (Assessment Year: 2026-27) & 2. Ita No. 2369/Mum/2026 (Assessment Year: 2026-27) Inspira Global Cit (Exemptions), Foundation Room No. 601, 6Th 3/B, Hind Saurasta Vs. Floor, Mtnl Te Chs Ltd. Andheri Kurla Building, Cumballa Road, Marol Naka, Hill, Pedder Road, Mumbai – 400 059 Mumbai-400 026 Pan/Gir No. Aahci7703E (Applicant) (Respondent) Assessee By Shri Punit Shah, Ld. Ar Revenue By Shri Virabhadra Mahajan, Ld. Dr Date Of Hearing 19.05.2026 Date Of Pronouncement 20.05.2026 आदेश / Order Per Makarand Vasant Mahadeokar, Am: These Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Passed By The Learned Commissioner Of Income Tax (Exemptions), Mumbai [Hereinafter Referred To As “Cit(E)”], Both Dated 18.12.2025, Passed In Form No.10Ad Rejecting The Assessee’S Application For Regular Registration Under Section 12Ab Of The Income-Tax Act, 1961[Hereinafter Referred To As "The Act"]And Consequential Rejection Of Approval Under Section 80G(5) Of The Act. Since Common Facts & Common Issues Are Involved In Both The Appeals, These Were Heard Together & Are Being Disposed Of By Way Of This Consolidated Order For The Sake Of Convenience.

Section 11Section 12ASection 12A(1)(ac)Section 8Section 80G(5)

Om Jai Shree Dhuniwale Dadaji Pariwar, Pune vs. CIT (Exemption), Pune

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

ITA 2629/PUN/2025[2025-26]Status: DisposedITAT Pune14 May 2026AY 2025-26
For Appellant: Smt. Deepa KhareFor Respondent: Shri Amit Bobde
Section 12ASection 12A(1)(ac)

Shree Radha Madhav Gau Seva Charitable Trust, Bhavnagar vs. The ADIT, CPC, Bengaluru Juris. AO- the ITO(Exemp), Bhavnagar

In the result, the appeal of the assessee is partly allowed

ITA 1885/AHD/2025[2021-22]Status: DisposedITAT Ahmedabad12 May 2026AY 2021-22

Bench: Ms. Suchitra Kambleassessment Year 2021-22

For Appellant: Shri Sapnesh Sheth, CAFor Respondent: Smt. Mamta Singh, Sr. D.R
Section 11Section 12ASection 12A(1)(ac)

Shree Vile Parle Aath Koti Nani Paksha Sthanakvasi Jain Sangh, Mumbai vs. CIT (Exemption), Mumbai

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

ITA 1552/MUM/2026[2025-26]Status: DisposedITAT Mumbai12 May 2026AY 2025-26

Bench: Shri Amit Shukla & Shri Prabhash Shankar & Shree Vile Parle Aath Koti V/S. Commissioner Of Income Tax Nani Paksha Sthanakvasi बनाम (Exemptions) Jain Sangh 601, 6Th Floor, Cumballa Hill, C/O Rinakod Tailors Vora Kunj Mtnl Te Building, Pedder Shraddhanand Road, Vile Parle Road, Mumbai – 400 026, (East), Mumbai – 400 057, Maharashtra Maharashtra स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Abets5536J Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Mr. Ayush Chhajed, (virtually appeared)For Respondent: Shri Vimal Kumar Meena, CIT-DR
Section 12ASection 12A(1)(ac)

Shree Vile Parle Aath Koti Nani Paksha Sthanakvasi Jain Sangh, Mumbai vs. CIT (Exemptions), Mumbai

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

ITA 1551/MUM/2026[2025-26]Status: DisposedITAT Mumbai12 May 2026AY 2025-26

Bench: Shri Amit Shukla & Shri Prabhash Shankar & Shree Vile Parle Aath Koti V/S. Commissioner Of Income Tax Nani Paksha Sthanakvasi बनाम (Exemptions) Jain Sangh 601, 6Th Floor, Cumballa Hill, C/O Rinakod Tailors Vora Kunj Mtnl Te Building, Pedder Shraddhanand Road, Vile Parle Road, Mumbai – 400 026, (East), Mumbai – 400 057, Maharashtra Maharashtra स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Abets5536J Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Mr. Ayush Chhajed, (virtually appeared)For Respondent: Shri Vimal Kumar Meena, CIT-DR
Section 12ASection 12A(1)(ac)

Padmashree Manibhai Desai Shikshan Prasarak Mandal, Beed vs. CIT (E), Pune

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

ITA 2955/PUN/2025[2025-26]Status: DisposedITAT Pune11 May 2026AY 2025-26
For Appellant: NoneFor Respondent: Shri Amit Bobde
Section 12ASection 12A(1)(ac)

Dr.Shrikant Shinde Foundation, Mumbai vs. Commissioner of Income Tax (Exemption), Pune

In the result the appeals filed by the assessee are dismissed as withdrawn

ITA 92/MUM/2026[N.A ]Status: DisposedITAT Mumbai07 May 2026

Bench: Us Assessee Has Filed Following Letter For Withdrawal Of Appeal: “The Captioned Appeals Are Fixed For Hearing Before Your Honours On 26 March 2026. The Appeals Are Filed Against The Orders Dated 03.09.2025 Passed By The Cit(E), Pune Rejecting The Approval U/S 12Ab & 80G Respectively, On Account Of Incorrect Selection Of Clause (Ii) Instead Of Clause (Iii) Of Section 12A(1)(Ac) Of The Income Tax Act, 1961. Subsequently, The Learned Cit(E), Pune Has Passed Orders In Form 10Ad Dated 19.03.2026 Granting Approval U/S 12Ab(1)(B) & 80G. Copies Of Orders Dated 19.03.2026 Are Attached As Annexure 1 & 2. Since The Principal Issue Of Rejection Of Approval Under The Said Sections Is Resolved By The Subsequent Orders Of The Cit(E), The Appellant Submits That The Appeals Are Infructuous In The Circumstances, The Appellant Humbly Request Your Honours To Pass Orders Considering Recent Developments In The Matter” 3. Ld. Dr Does Not Have Any Objection.

Section 12ASection 12A(1)(ac)

Dr. Shrikant Shinde Foundation, Mumbai vs. Commissioner of Income Tax (Exemption), Pune

In the result the appeals filed by the assessee are dismissed as withdrawn

ITA 91/MUM/2026[n.a ]Status: DisposedITAT Mumbai07 May 2026

Bench: Us Assessee Has Filed Following Letter For Withdrawal Of Appeal: “The Captioned Appeals Are Fixed For Hearing Before Your Honours On 26 March 2026. The Appeals Are Filed Against The Orders Dated 03.09.2025 Passed By The Cit(E), Pune Rejecting The Approval U/S 12Ab & 80G Respectively, On Account Of Incorrect Selection Of Clause (Ii) Instead Of Clause (Iii) Of Section 12A(1)(Ac) Of The Income Tax Act, 1961. Subsequently, The Learned Cit(E), Pune Has Passed Orders In Form 10Ad Dated 19.03.2026 Granting Approval U/S 12Ab(1)(B) & 80G. Copies Of Orders Dated 19.03.2026 Are Attached As Annexure 1 & 2. Since The Principal Issue Of Rejection Of Approval Under The Said Sections Is Resolved By The Subsequent Orders Of The Cit(E), The Appellant Submits That The Appeals Are Infructuous In The Circumstances, The Appellant Humbly Request Your Honours To Pass Orders Considering Recent Developments In The Matter” 3. Ld. Dr Does Not Have Any Objection.

Section 12ASection 12A(1)(ac)

Chandigarh Rotary Club Service Trust, Chandiagrh vs. Commissioner of Income Tax (E), Chandigarh

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

ITA 59/CHANDI/2026[2026-27]Status: DisposedITAT Chandigarh04 May 2026AY 2026-27
For Appellant: Shri T.N. Singla, C.AFor Respondent: Shri Manav Bansal, CIT(DR)
Section 12A(1)(ac)Section 80G(5)

Chandigarh Rotary Club Service Trust, Chandiagrh vs. Commissioner of Income Tax (E), Chandigarh

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

ITA 58/CHANDI/2026[2026-27]Status: DisposedITAT Chandigarh04 May 2026AY 2026-27
For Appellant: Shri T.N. Singla, C.AFor Respondent: Shri Manav Bansal, CIT(DR)
Section 12A(1)(ac)Section 80G(5)

Shri Yashwant Ho Jaywant Ho De vs. TAN Trust, Sataravs.CIT(Exemption), Pune

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

ITA 2515/PUN/2025[-]Status: DisposedITAT Pune04 May 2026
For Appellant: Smt. Deepa KhareFor Respondent: Shri Amit Bobde
Section 12ASection 12A(1)(ac)

Iilm University, Greater Noida vs. Deputy Commissoiner of Income Tax, Noida

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

ITA 6696/DEL/2025[2026-27]Status: DisposedITAT Delhi29 Apr 2026AY 2026-27
For Appellant: Mohd. Athar Saifi, CAFor Respondent: Sh. Amit Jain, CIT-DR
Section 12ASection 12A(1)Section 12A(1)(ac)Section 2(15)

Maharashtra Pradesh Mahesh Wari Sabha, Beed vs. Commissioner of Income-Tax (Exemptions), Pune

In the result, the appeal filed by the assessee in ITA

ITA 1669/PUN/2026[NA]Status: DisposedITAT Pune28 Apr 2026
For Appellant: Shri Bhuvanesh KankaniFor Respondent: Shri Amit Bobde
Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

Padma Tulsidas Sanghavi Public Charitable Trust, Mumbai vs. Commissioner of Income Tax (Exemption), Mumbai

ITA 926/MUM/2026[N.A ]Status: DisposedITAT Mumbai27 Apr 2026
For Appellant: Shri Kumar KaleFor Respondent: Shri R. A. Dhyani
Section 12ASection 12A(1)(ac)

Shri Swami Lilashah Sindhi Samaj Seva Trust Rajula, Rajula vs. CIT(Exemption) Ahmedabad, Ahmedabad

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

ITA 467/AHD/2026[N.A.]Status: DisposedITAT Ahmedabad23 Apr 2026

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Hatim Bharmar, ARFor Respondent: Shri Sher Singh, CIT-DR
Section 12A(1)(ac)

Shree Sagar Sant Shree Dasaram Charitable Trust- Savarkundla, Savarkundla vs. CIT(Exemption)Ahmedabad, Ahmedabad

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

ITA 432/AHD/2026[N.A.]Status: DisposedITAT Ahmedabad23 Apr 2026

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Hatim Bharmar, ARFor Respondent: Shri Sher Singh, CIT-DR
Section 12ASection 12A(1)(ac)

Nationnext Foundation, Nagpur vs. CIT Exemption Pune, Pune

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

ITA 310/NAG/2025[-]Status: DisposedITAT Nagpur06 Apr 2026

Bench: Shri Pawan Singh & Shri Khettra Mohan Roy

For Appellant: Shri Mahavir Atal, CAFor Respondent: Shri Pankaj Kumar, CIT-DR
Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

Nationnext Foundation, Nagpur vs. CIT Exemptions, Pune

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

ITA 309/NAG/2025[-]Status: DisposedITAT Nagpur06 Apr 2026

Bench: Shri Pawan Singh & Shri Khettra Mohan Roy

For Appellant: Shri Mahavir Atal, CAFor Respondent: Shri Pankaj Kumar, CIT-DR
Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

Chimanlal Modi Charitable Trust, Mehsana vs. CIT (Exemption), Ahmedabad

In the result, the appeal filed by the assessee in ITA No

ITA 2521/AHD/2025[NOT APPLICABLE]Status: DisposedITAT Ahmedabad10 Mar 2026

Bench: Six Months From The Date Of Commencement Of The Activities, Which Was Further Extended By Cbdt Circular No. 7 Of 2024 Up To 30-06- 2024 But The Assessee Trust Had Not Filed Any Reason For Delay In Filing Such Application. Therefore Ld. Cit(E) Denied The Registration By Observing That The Application Is Filed Belatedly.

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

Chimanlal Modi Charitable Trust, Mehsana vs. CIT (Exemption), Ahmedabad

In the result, the appeal filed by the assessee in ITA No

ITA 2520/AHD/2025[NOT APPLICABLE]Status: DisposedITAT Ahmedabad10 Mar 2026

Bench: Six Months From The Date Of Commencement Of The Activities, Which Was Further Extended By Cbdt Circular No. 7 Of 2024 Up To 30-06- 2024 But The Assessee Trust Had Not Filed Any Reason For Delay In Filing Such Application. Therefore Ld. Cit(E) Denied The Registration By Observing That The Application Is Filed Belatedly.

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