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

Income-tax Act, 2025: ss.332–355

Section 12A(1)(b) 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)(b) is CIT v. Hardeodas Agarwalla Trust (198 ITR 511), cited in 46 of the 171 judgments on BharatTax that turn on this section.

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

CIT v. Hardeodas Agarwalla Trust
198 ITR 511 · 1992 · High Court
46
citing judgments

Filing an audit report, such as Form 10B under Section 12A(1)(b), is a directory procedural requirement for charitable trusts, not mandatory. If the report is not filed with the return, the Assessing Officer must provide an opportunity to rectify the defect before completing the assessment.

Social Security Scheme of GICEA v. CIT (Exemptions)
147 Taxmann.com 283 · 2023 · High Court
31
citing judgments

An assessee trust substantially satisfying conditions for exemption under section 11 should not be denied exemption merely due to delay in filing the audit report in Form 10B, as the legislature has conferred wide discretionary powers to condone such delay.

CIT v. GEI Engineering Ltd.
263 ITR 221 · 2003 · High Court
28
citing judgments

The scope of adjustment under Section 143(1)(a) is limited and has been well-settled by judicial pronouncements.

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).

Jamia Mohammediyah Education Society v. Commissioner of Income-tax (Exemptions)
162 Taxmann.com 114 · 2024 · High Court
27
citing judgments

A delay in filing Form 10B by a charitable trust, due to an oversight by the Chartered Accountant, is condonable, and the matter should be remanded to the Assessing Officer for a decision on merits.

6. Shree Bhairav Seva Samiti v. Income-tax Officer (Exemption)
149 Taxmann.com 478 · 2023 · ITAT
18
citing judgments

Exemption under section 11 of the Income Tax Act cannot be denied merely because Form 10B was not filed along with the return of income, as this is a procedural requirement and not a mandatory condition for claiming exemption.

CIT v. Devradhan Madhavlal Genda Trust
230 ITR 714 · 1998 · High Court
12
citing judgments

Filing of the audit report in Form No. 10B with the return of income is not mandatory for claiming exemption under Section 11. If the report is filed after the return but within the period permitted by law, the exemption cannot be denied.

Bank of America v. DCIT
200 ITR 739 · 1993 · High Court
11
citing judgments

The power to disallow a deduction or relief claimed in a return under section 143(1)(a) can only be exercised when the claim is prima facie inadmissible, meaning the error is clear or self-evident from the face of the return and accompanying documents. A debatable issue cannot be decided under this section.

Khatau Junker v. Pathania
248 ITR 139 · Reported
10
citing judgments

A deduction claimed must be inadmissible on the face of the return and accompanying documents for it to be rectified under section 143(1)(a). Debatable issues cannot be resolved through this summary assessment.

S.M. K.R. Vashi High School v. ITO (Exemption)
157 Taxmann.com 702 · 2023 · ITAT
9
citing judgments

Judgments on Section 12A(1)(b)

Jv Foundation, Mumbai vs. ITO Exemption Ward 1(4), Mumbai

In the result, both the appeals are dismissed

ITA 181/MUM/2025[2014-15]Status: DisposedITAT Mumbai09 Dec 2025AY 2014-15

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: NoneFor Respondent: Ms. Kavitha Kaushik, (Sr. DR)
Section 11Section 12A(1)(b)Section 143(1)Section 44A

Hare Krishna Movement Puri, Balagandi vs. Income Tax Officer (Exemption), Bhubaneswar

In the result, appeal of the assessee stands allowed

ITA 594/CTK/2025[2017-18]Status: DisposedITAT Cuttack05 Dec 2025AY 2017-18
Section 11Section 12A(1)(b)

Centre for Incubation and Business Acceleration, Verna vs. Centralize Processing Centre, Income Tax Department, Bengaluru

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

ITA 152/PAN/2025[2024-25]Status: DisposedITAT Panaji26 Nov 2025AY 2024-25

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. Nos.152/Pan/2025 (A.Y.2024-25 ) Centre For Incubation & Vs. I T O- Exemption, Business Acceleration, Ward-1, Angel Charities, Pundalik Niwas, Angel Ashram, Panaji-403001, Verna, Salcete, Goa. Goa-403722. Pan/Gir No. Aafcc5621B (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Appellant By Shri.Mahendra Gohel.Ar Revenue By Smt. Rijula Uniyal. Sr.Dr सुनवाई की तारीख/Date Of Hearing 18.11.2025 घोषणा की तारीख/Date Of Pronouncement 26.11.2025 Order Per Pavan Kumar Gadale, Jm:

Section 11Section 119(2)(b)

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)

Kranthi Educational Society, Bhadrachallam vs. DCIT., Exemption Circle-1(1), Hyderabad

In the result, the appeal filed by the assessee is allowed for statistical purposes in terms of our observations given hereinabove

ITA 820/HYD/2025[2022-2023]Status: DisposedITAT Hyderabad19 Nov 2025AY 2022-2023

Bench: the Ld. CIT(A).

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

Seva Bharathi Trust, Chamarajanagara vs. Income Tax Officer, Ward-1, Chamarajanagara

In the result, appeal filed by the assessee is partly allowed

ITA 1486/BANG/2025[2016-17]Status: DisposedITAT Bangalore31 Oct 2025AY 2016-17

Bench: Shri.Laxmi Prasad Sahu & Shri.Keshav Dubeyassessment Year : 2016-17 M/S. Seva Bharathi Trust, Vs. Ito, Sevabharathi College Campus, Ward –1, Chennipuradamole Road, Chamarajanagara. Chamarajanagara – 571 313. Pan : Aabts 6034 K Appellant Respondent Assessee By : Shri. Vageesh Hegde, Ca Revenue By : Shri. Ganesh R. Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 09.10.2025 Date Of Pronouncement : 31.10.2025

For Appellant: Shri. Vageesh Hegde, CAFor Respondent: Shri. Ganesh R. Ghale, Advocate, Standing Counsel for Revenue
Section 11Section 119Section 12A(1)(b)Section 139

Rural Development Foundation, Anand vs. CPC, Bengaluru Juris. AO- the ITO, Ward-Exemption, Vadodara

In the result, the appeal of the assessee is allowed

ITA 927/AHD/2025[2019-20]Status: DisposedITAT Ahmedabad29 Oct 2025AY 2019-20

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaआयकर अपील सं /Ita No.927/Ahd/2025 िनधा"रण वष" /Assessment Year : 2019-20 Rural Development Cpc, Bengaluru बनाम/ Foundation Juris.Ao – The Ito Ward- V/S. Aitc, 2Nd Floor Exemption Narayan Complex Vadodara – 390 007 Nr.Shubh Laxmi Shopping Centre Station Road Anand – 388 001 "थायी लेखा सं./Pan: Aabtr 1090 C (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Ms. Arti N. Shah, Ar Revenue By : Shri Rameshwar P. Meena, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 17/10/2025 घोषणा की तारीख /Date Of Pronouncement: 29/10/2025 आदेश/O R D E R Per Siddhartha Nautiyal, Jm: The Present Appeal Has Been Preferred By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As ‘Cit(A)’] Dated 21/02/2025 Passed U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For The Assessment Year (Ay) 2019-2020. 2. The Assessee Has Raised The Following Grounds Of Appeal: Rural Development Foundation Vs. Cpc, Bengaluru Juris Ao The Ito, Ward-Exemption Asst. Year : 2019-20

For Appellant: Ms. Arti N. Shah, ARFor Respondent: Shri Rameshwar P. Meena, Sr.DR
Section 11Section 12ASection 12A(1)(b)Section 143(1)Section 154Section 250

Triloknath Vatsalya Vatika, Gandhinagar vs. The Dy.CIT, CPC, Bangalore Present Jao- the ITO, Ward-1 (Exemption), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1092/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad28 Oct 2025AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaआयकर अपील सं /Ita No.1092/Ahd/2025 िनधा"रण वष" /Assessment Year : 2017-18 Triloknath Vatsalya Vatika The Dy.Cit बनाम/ At Balva Cpc Bangalore. V/S. Nr. Tahuko Hotel Present Jao Kalol The Ito Ward-1(Exemption) Gandhinagar – 382 001 Ahmedabad-380 015 "थायी लेखा सं./Pan: Aants 5604 B (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Shri Kushal Fofaria, Ar Revenue By : Shri R.P. Rastogi, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 15/10/2025 घोषणा की तारीख /Date Of Pronouncement: 28/10/2025 आदेश/O R D E R Per Siddhartha Nautiyal, Jm: This Appeal By The Assessee Is Directed Against The Order Dated 10/03/2025 Passed By The Office Of The Commissioner Of Income Tax, Appeal Addl/Jcit(A)-Gwalior [Hereinafter Referred To As “Cit(A)”], U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”), For The Assessment Year (Ay) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Kushal Fofaria, ARFor Respondent: Shri R.P. Rastogi, CIT-DR
Section 11Section 119(2)Section 119(2)(b)Section 12ASection 12A(1)(b)Section 139(1)Section 143(1)Section 234ASection 250Section 44A

Central Methodist Church, Lucknow vs. Commissioner of Income Tax (Exemption), Lucknow

In the result, the appeal of the assessee is dismissed

ITA 105/LKW/2025[2022-23]Status: DisposedITAT Lucknow30 Sept 2025AY 2022-23

Bench: SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. Rakesh Garg, AdvFor Respondent: Sh. R.R.N. Shukla, CIT DR
Section 119(2)(b)Section 12ASection 139(1)Section 143(1)Section 143(1)(a)Section 2Section 250

Church of Our Lady of Immaculate Conception, Mumbai vs. Income Tax Officer Exemption Ward 1(2), Mumbai

In the result, grounds of appeal raised by assessee are allowed

ITA 4999/MUM/2025[2023-24]Status: DisposedITAT Mumbai18 Sept 2025AY 2023-24

Bench: Shri Pawan Singh& Shri Arun Khodpia

Section 11Section 12A(1)(b)Section 143(1)Section 143(1)(a)Section 254(1)

Church of Our Lady of Immaculate Conception, Mumbai vs. Income Tax Officer Exemption Ward 1(2), Mumbai

In the result, grounds of appeal raised by assessee are allowed

ITA 4998/MUM/2025[2024-25]Status: DisposedITAT Mumbai18 Sept 2025AY 2024-25

Bench: Shri Pawan Singh& Shri Arun Khodpia

Section 11Section 12A(1)(b)Section 143(1)Section 143(1)(a)Section 254(1)

Shalom Charitable Ministries of India, Palakkad vs. ITO (Exemption), Thrissur

ITA 548/COCH/2025[2007-08]Status: DisposedITAT Cochin10 Sept 2025AY 2007-08

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: NoneFor Respondent: Smt. Leena Lal, Sr. DR
Section 12A(1)(b)Section 14Section 250Section 271(1)(c)Section 44A

Shalom Charitable Ministries of India, Palakkad vs. ITO (Exemption), Thrissur

ITA 545/COCH/2025[2011-12]Status: DisposedITAT Cochin10 Sept 2025AY 2011-12

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: NoneFor Respondent: Smt. Leena Lal, Sr. DR
Section 12A(1)(b)Section 14Section 250Section 271(1)(c)Section 44A

Jhaji Shikshan Samiti, Durg vs. Deputy Commissioner of Income-Tax Exemption Circle, Bhopal

The appeal of the assessee is ALLOWED

ITA 476/RPR/2025[2018-19]Status: DisposedITAT Raipur09 Sept 2025AY 2018-19

Bench: Hon’Ble Shri Partha Sarathi Chaudhury & Shri G. D. Padmahshaliassessment Year: 2018-19 Jhaiji Shikshan Samiti, Arora Niwas, Ward No. 08, Durg Road, Bemetara, Durg-491335, Chhattisgarh Pan: Aaatj7624B ……….Appellant

For Appellant: Mr Yogesh Sethia [‘Ld. AR’]For Respondent: Ms Manisha Kinnu [‘Ld. DR’]
Section 11Section 12ASection 12A(1)(b)Section 143(1)Section 154Section 246ASection 250

The National Sodality Centre, Mumbai vs. Income Tax Officer Exemption, Mumbai

In the result, the appeal of the assessee is allowed

ITA 4153/MUM/2025[2024-25]Status: DisposedITAT Mumbai29 Aug 2025AY 2024-25

Bench: Smt. Beena Pillai & Smt. Renu Jauhri

For Appellant: Ms. Vasanthi PatelFor Respondent: Shri. Bhagirath Ramawat (SR
Section 11Section 11(1)Section 11(1)(a)Section 11(6)Section 12ASection 143(1)Section 143(1)(a)Section 250

Public Education Society, Bangalore vs. Income Tax Officer, Exemptions Ward 2, Bangalore

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

ITA 1102/BANG/2025[2023-24]Status: DisposedITAT Bangalore26 Aug 2025AY 2023-24

Bench: Shri Prashant Maharishi & Shri Soundararajan K.Assessment Year: 2023-24

For Appellant: Shri Prathik, CAFor Respondent: Shri Thamba Mahendra, Jt.CIT (DR)(ITAT), Bengaluru
Section 11Section 12A(1)(b)Section 143(1)

Finecab Wires & Cables Private Limited, Hyderabad vs. DCIT., Circle-8(1), Hyderabad

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

ITA 614/HYD/2025[2020-21]Status: DisposedITAT Hyderabad20 Aug 2025AY 2020-21

Bench: Shri Ravish Sood & Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.614/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2020-21) M/S. Finecab Wires & Cables Pvt. Dy. Commissioner Of Income Tax, Vs. Circle 8(1), Hyderabad. Ltd., Hyderabad. Pan:Aaacf4141Q (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri Akshay Surana, C.A. रधजस् व द्वधरध/Revenue By:: Dr. Sachin Kumar, Sr-Dr सुिवधई की तधरीख/Date Of Hearing: 06/08/2025 घोर्णध की तधरीख/Pronouncement: 20/08/2025

For Appellant: Shri Akshay Surana, C.AFor Respondent: : Dr. Sachin Kumar, SR-DR
Section 115BSection 119Section 139(1)Section 143(1)

Akshat Education and Charitable Trust, Anand vs. The ITO, Ward- Exemption, Vadodara

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

ITA 457/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad19 Aug 2025AY 2020-21

Bench: Ms Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.457/Ahd/2025 िनधा"रण वष" /Assessment Year : 2020-2021 Akshat Education & Charitable The Income Tax Officer, Trust, बनाम Ward (Exemption), / 5/35, Gosainu Faliyu, Vadodara. V/S. Asodar Borsad Road, Asodar, Anand-388307. (Gujarat) "थायी लेखा सं./Pan: Aaeta2211K अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Mehul Thakkar, Ar Revenue By : Shri Rignesh Das, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 14/08/2025 घोषणा की तारीख /Date Of Pronouncement: 19/08/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: ] ] This Appeal By The Assessee Is Directed Against The Order Of The Learned Joint Commissioner Of Income Tax (Appeals)-2, Coimbatore [Hereinafter Referred To As “Ld. Cit(A)”] Dated 25.01.2025, Passed Under Section 250 Of The Income Tax Act, 1961 [Hereinafter Referred To As “The Act”] For The Assessment Year 2020–21. The Impugned Order Arises Out Of The Akshat Education & Charitable Trust Vs. Ito(E) Assessment Year 2020-21

For Appellant: Shri Mehul Thakkar, ARFor Respondent: Shri Rignesh Das, CIT-DR
Section 11Section 12ASection 12A(1)(b)Section 139(1)Section 143(1)Section 250

DCIT, Trivandrum vs. St Josephs Province, Trivandrum

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

ITA 443/COCH/2025[2018-19]Status: DisposedITAT Cochin14 Aug 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am & Shri Soundararajan K., Jm

For Appellant: ------- None -------For Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 11Section 12Section 12ASection 12A(1)(b)Section 13Section 13(9)Section 139Section 139(1)Section 143(3)Section 21A