Section 12A of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 12A of the Income-tax Act, 1961 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 is CIT v. Institute of Banking Personnel Selection (264 ITR 110), cited in 398 of the 6,064 judgments on BharatTax that turn on this section.

Leading authorities on Section 12A

CIT v. Institute of Banking Personnel Selection
264 ITR 110 · 2003 · High Court
398
citing judgments

Depreciation is allowable on assets for which the cost has been fully allowed as an application of income under Section 11 in previous years, when computing the income of a charitable trust. Charitable trusts are also entitled to carry forward their deficit.

ACIT v. Ahmedabad Urban Development Authority
143 Taxmann.com 278 · 2022 · Supreme Court
390
citing judgments

If activities for the advancement of general public utility are carried on as a business, income from such activities is not exempt under Section 11, even if the profits are utilized for the main charitable object. The argument that profits from general public utility activities can be ploughed back to charity to maintain exemption is not a good law.

Addl. CIT v. Surat Art Silk Cloth Manufacturers Association
121 ITR 1 · 1980 · Supreme Court
328
citing judgments

A charitable institution, whose predominant object is general public utility, can engage in non-charitable activities yielding incidental profits, provided these profits are deployed to achieve the dominant charitable object. A subsidiary object, if ancillary to the primary charitable purpose, does not negate the institution's charitable character.

Sole Trustee, Loka Shikshana Trust v. CIT
101 ITR 234 · 1975 · Supreme Court
323
citing judgments

This case defines 'education' under Section 2(15) of the Income Tax Act as systematic instruction, schooling, or training given to the young for preparation for the work of life. It clarifies that 'education' in this context has a narrow meaning, not extending to every acquisition of further knowledge.

Exide Industries Ltd. v. Union of India
292 ITR 470 · 2007 · High Court
320
citing judgments

The Calcutta High Court held that restricting deduction for leave encashment via Section 43B(f) was arbitrary and contrary to Supreme Court decisions. However, this judgment was later stayed by the Supreme Court.

Escorts Ltd. v. UOI
199 ITR 43 · 1993 · Supreme Court
267
citing judgments

A statute should not be construed to permit double deduction for the same expenditure unless specifically provided by law.

1. AIR 1951 SC 467: HARLA v. THE STATE OF RAJASTHAN. 2
2 SCC 453 · 1997 · Reported
222
citing judgments

When an appeal or revision is filed against an order passed by a subordinate forum, and a superior forum modifies, reverses, or affirms that decision, the order of the subordinate forum merges into the superior forum's decision, which then becomes the sole operative and enforceable order.

CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal
211 ITR 293 · 1995 · High Court
204
citing judgments

A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.

CIT v. Gujarat Oil & Allied Industries
201 ITR 325 · 1993 · High Court
195
citing judgments

The requirement to file an audit report along with the income tax return, as specified in provisions like Section 80J(6A) or 80-IA(7), is directory and not mandatory. Substantial compliance is achieved if the audit report is submitted at any time before the assessment is framed or completed, and benefits should not be denied merely due to a delay in furnishing it.

CIT v. Society of the Sisters of St. Anne
146 ITR 28 · 1984 · High Court
195
citing judgments

Depreciation claimed by a charitable trust on its assets is an allowable application of income for computing exemption under Section 11, and this does not constitute a double deduction.

Judgments on Section 12A

Tax Advocates Association of Bengal, Kolkata vs. CIT(Examption), Kolkata

In the result, the appeal of the assessee stands dismissed

ITA 955/KOL/2023[NA]Status: DisposedITAT Kolkata08 Dec 2023

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.955/Kol/2023 Tax Advocates Association Of Bengal.......................…...……………....Appellant 61A, A.P.C Road, Opp. Bamboo Villa, Kolkata-700016. [Pan: Aactt1935H] Vs. Cit(Exemption), Kolkata.........…..........................................…..…..... Respondent Appearances By: Shri S. K. Tulsiyan, Advocate, Appeared On Behalf Of The Appellant. Shri Rakesh Kumar Das, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : November 21, 2023 Date Of Pronouncing The Order : December 08, 2023 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee-Association Agitating The Rejection Of Application For Registration U/S 12A Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) As Charitable Institution In An Ex Parte Order 08.08.2023 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’]. 2. At The Outset, The Ld. Counsel For The Assessee Has Submitted That In Fact The Assessee-Association Has Already Been Granted Registration U/S 12A Of The Act From A.Y 2022-23 To A.Y 2026-27. He, In This Respect, Has Relied Upon The Certificate/Order Of Registration Dated 07.04.2022 Bearing Unique Registration No.Aactt1935He20201. The Ld. Counsel Has Submitted That The Assessee Inadvertently Filed Second Application For Registration. The Ld. Counsel Has Submitted That The

Section 12A

M/S. Suprativa, Cuttack vs. ITO Ward-2(2), Cuttack

In the result, appeal filed by the assessee stands allowed

ITA 308/CTK/2023[2017-18]Status: DisposedITAT Cuttack07 Dec 2023AY 2017-18

Bench: Shri George Mathanआयकर अऩीऱ सं/Ita No.308/Ctk/2023 (ननधाारण वषा / Assessment Year :2017-2018) M/S Suprativa, Vs Ito, Ward-2(2), Cuttack Fakirpada, Cuttack-754100 Pan No. :Aasas 9915 R (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri Pradeep Kumar Pattnaik, Advocate राजस्व की ओर से /Revenue By : Shri S.C.Mohanty, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 07/12/2023 घोषणा की तारीख/Date Of Pronouncement : 07/12/2023 आदेश / O R D E R This Is An Appeal Filed By The Assessee Against The Order Of The Ld Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Dated 10.08.2023, Passed In Din & Order No.Itba/Nfac/S/250/2023- 24/1055034411(1) For The Assessment Year 2017-2018. 2. It Was Submitted By The Ld Ar That The Assessee Is A Society Registered U/S.12A Of The Act. It Was The Further Submission That Form 10B Was Filed Belatedly. It Was The Submission That When The Return Of Income Was Filed By The Assessee, The Same Was Processed By Issuance Of Intimation U/S.143(1) Of The Act, Wherein The Entire Expenditure Claimed By The Assessee Was Disallowed By Raising A Demand Of Rs.5,89,164/-. On Appeal, The Ld. Cit(A) Upheld The Adjustment Done By The Ld. Ao On Account Of Belatedly Filing Of Form 10B By The Assessee. Consequently, The Ld. Cit(A) Dismissed The Appeal Of The Assessee. It Was The Submission That The Assessee Has Not Received Any Show Cause Notice

For Appellant: Shri Pradeep Kumar Pattnaik, AdvocateFor Respondent: Shri S.C.Mohanty, Sr. DR
Section 11Section 12ASection 139Section 143(1)

Shri Shamjibhai Harjibhai Talavia Charitable Trust, Rajkot vs. The Pr. CIT(Exemption), Ahmedabad

The appeal of the assessee is dismissed

ITA 73/RJT/2021[2015-16]Status: DisposedITAT Rajkot04 Dec 2023AY 2015-16

Bench: Mrs. Annapurna Gupta & Shri Siddhartha Nautiyal(Through Web-Based Video Conferencing Platform) िनधा"रणवष"/Assessment Year: 2015-16 Shri Shamjibhai Harjibhai Talavia Vs. The Pr. Commissioner Of Charitable Trust, Income-Tax (Exemption), 50 Feet Road, 7-Parsana Society, Ahmedabad Rajkot-360002 Pan : Aacts 8845 F अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" Assessee By : Shri Mehul Ranpura, Ar Revenue By : Shri Shramdeep Sinha, Cit-Dr सुनवाई क" तारीख/Date Of Hearing : 04.09.2023 घोषणा क" तारीख /Date Of Pronouncement: 04.12.2023 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Gupta: This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Learned Commissioner Of Income-Tax (Exemptions), Ahmedabad [Herein-After Referred To As “Cit(Exemptions)”] Dated 23.03.2021, In Exercise Of His Revisionary Powers Under Section 263 Of The Income-Tax Act, 1961 [Hereinafter Referred To As “The Act”], For The Assessment Year 2015-16. 2. The Assessee Has Raised Following Grounds Challenging The Validity Of Revisionary Jurisdiction Exercised By The Ld. Cit (Exemptions) In The Present Case:- “1. The Grounds Of Appeal Mentioned Hereunder Are Without Prejudice To One Another. 2. The Order Passed By Pr. Commissioner Of Income-Tax (Exemption), Ahmedabad [Hereinafter Referred As To The “Pr. Cit”] Is Bad & Illegal & Requires To Be Quashed.

For Appellant: Shri Mehul Ranpura, ARFor Respondent: Shri Shramdeep Sinha, CIT-DR
Section 10Section 11Section 12ASection 143(3)Section 263