How many judgments are there on Section 12A?

BharatTax indexes 6,064 ITAT, High Court and Supreme Court judgments that turn on Section 12A of the Income Tax Act, 1961.

Section 12A of the Income Tax Act

Q: What is the leading case on Section 12A of the Income Tax Act?

CIT v. Institute of Banking Personnel Selection (264 ITR 110) is the decision most relied on for Section 12A, cited in 398 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.

Q: Which cases are most cited on Section 12A?

CIT v. Institute of Banking Personnel Selection (264 ITR 110) — 398 citing judgments; ACIT v. Ahmedabad Urban Development Authority (143 Taxmann.com 278) — 390 citing judgments; Addl. CIT v. Surat Art Silk Cloth Manufacturers Association (121 ITR 1) — 328 citing judgments; Sole Trustee, Loka Shikshana Trust v. CIT (101 ITR 234) — 323 citing judgments; Exide Industries Ltd. v. Union of India (292 ITR 470) — 320 citing judgments.

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

Shiksha Prasarak Samiti, Sendhwa vs. The CIT (E), Bhopal

ITA 102/IND/2023[00]Status: DisposedITAT Indore21 Jun 2023

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanishiksha Prasarak Samiti, Cit, (Exemption), Niwali Road, Bhopal. बनाम/ Sendhwa (M.P.) Vs. (Appellant / Assessee) (Respondent / Revenue) Pan: Aagas3296M Assessee By Shri Pankaj Shahand Shri Somya Bumb, Ca Revenue By Shri P.K. Mishra, Cit Dr Date Of Hearing 23.05.2023 Date Of Pronouncement 21.06.2023

Section 12ASection 80G(5)

Society for Computer Technology and Research, Pune vs. Assistant Commissioner of Income Tax (Exemption), Pune

In the result, the appeal is dismissed

ITA 603/PUN/2023[2017-18]Status: DisposedITAT Pune15 Jun 2023AY 2017-18

Bench: Shri R.S. Syal

Section 12ASection 133(6)Section 250

Kakatiya Sangham, Tanuku vs. Incpme Tax Officer, Ward-1, Tanuku

In the result, appeal filed by the assessee is allowed

ITA 19/VIZ/2023[2012-13]Status: DisposedITAT Visakhapatnam15 Jun 2023AY 2012-13

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.19/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2012-13) Kakatiya Sangham Vs. Income Tax Officer D.No.4-348 Ward-1 Bypass Road (Chivatam) Tanuku Tanuku, West Godavari Dist. [Pan : Aaatk7209H] अपीलधथी की ओर से/ Appellant By : Shri G.V.N.Hari, Ar प्रत्यधथी की ओर से / Respondent By : Shri O.N.Hari Prasada Rao, Dr सुनवधई की तधरीख / Date Of Hearing : 19.04.2023 घोर्णध की तधरीख/Date Of Pronouncement : 15.06.2023 आदेश /O R D E R Per Shri Duvvuru Rl Reddy: Condonation Of Delay : This Appeal Is Filed By The Assessee Against The Order Of Commissioner Of Income Tax (Appeals) [Cit(A)], National Faceless Appeal Centre (Nfac), Delhi In Din & Order No.Itba/Nfac/S/250/2022-23/1043166326(1) Dated 25.05.2022 For The Assessment Year (A.Y.) 2012-13, Arising Out Of The Order Passed U/S 143(3) Of The Income Tax Act, 1961 (In Short ‘Act’) Dated 23.09.2014 With The Delay Of 183 Days. The Assessee Filed Petition For Condonation Of Delay, Submitting That The Order Of The Ld.Cit(A), Nfac, Delhi Was Passed

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri O.N.Hari Prasada Rao, DR

Section 12ASection 143(3)Section 2(15)

The Nimar Educational Society, Khandwa vs. The Exemption Circle, Bhopal

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

ITA 162/IND/2022[2016-17]Status: DisposedITAT Indore14 Jun 2023AY 2016-17

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanithe Nimar Educational Society Cit(E) Harsud Road, Civil Lines Bhopal Vs. East Nimar, Khandwa (Appellant / Assessee) (Revenue) Pan: Aabtt 1409 K Assessee By Shri S.N. Agrwal, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 12.04.2023 Date Of Pronouncement 14.06.2023

Section 10Section 11Section 12ASection 12A(1)(ac)Section 143(3)Section 80G

Kunashni Foundation, Pune vs. Commissioner of Income Tax (Exemption), Pune

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

ITA 482/PUN/2023[-]Status: DisposedITAT Pune12 Jun 2023

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.481 & 482/Pun/2023 िनधा"रणवष" / Assessment Year : N.A. Kunashni Foundation, The Commissioner Of S.No.74A, Wing C-9, Eastern Vs Income Tax(Exemption), Court, B.T.Kawade Road, Pune. Ghorpadi Bazar, Pune – 411001. Pan: Aaick 7204 P Appellant / Revenue Respondent / Assessee Assessee By Mr. Neelesh Khandelwal – Ar Revenue By Shri Keyur Patel – Cit(Dr) Date Of Hearing 09/06/2023 Date Of Pronouncement 12/06/2023 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Are Filed By The Assessee Are Directed Against The Separate Orders Of Ld.Commissioner Of Income Tax(Exemption), Pune Both Dated 31.03.2023 Under Section 80G & 12A Respectively. The Assessee In Ita No.482/Pun/2023 Has Raised Following Grounds Of Appeal : “1. On Facts & Circumstances Prevailing In The Case & As Per The Provisions Of The Law, It Be Held That The Hon’Ble Commissioner Of Income Tax Exemptions Has Cancelled The Registration Granted U/S 12Ab R.W.S 12A(L)(Ac)(Vi) Without Granting Proper Opportunity

Section 12ASection 8Section 80G

Kunashni Foundation, Pune vs. Commissioner of Income Tax (Exemption), Pune

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

ITA 481/PUN/2023[-]Status: DisposedITAT Pune12 Jun 2023

Section 12ASection 8Section 80G

Salt Lake Shiksha Sadan, Kolkata vs. ITO(Exemp.)Ward 1(3), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 209/KOL/2021[2016-17]Status: DisposedITAT Kolkata12 Jun 2023AY 2016-17

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.209/Kol/2021 Assessment Year: 2016-17 Salt Lake Shiksha Sadan.................................................................……Appellant Ca-49, Salt Lake, Sector-1, Kolkata-700064. [Pan: Aadts4747F] Vs. Ito, Ward-1(3), Kolkata...............................……........……...…..…..Respondent Appearances By: Shri S.M. Surana, Advocate, Appeared On Behalf Of The Appellant. Shri Sanjay Mukherjee, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : April 03, 2023 Date Of Pronouncing The Order : June 12, 2023 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 22.03.2021 Of The Principal Commissioner Of Income Tax (Hereinafter Referred To As The ‘Pcit’) Exercising His Revision Jurisdiction U/S 263 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Society Is Involved In Educational Activity & Is Registered As A Charitable Institution U/S 12A Of The Act & Thus Entitled To The Deductions U/S 11 Of The Act. The Assessee Filed Its Return Of Income Declaring Nil Income For Claiming Deduction U/S 11 Of The Act Which Was Accepted By The Assessing Officer. Thereafter, The Ld. Pcit Exercising His Revision Jurisdiction U/S 263 Of The Act Observed From The Assessment Records That The Development Fund Of

Section 11Section 12ASection 263

Shree Agrasen Samiti, Nanded vs. The Commissioner of Income Tax (Exemption), Pune

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

ITA 442/PUN/2023[-]Status: DisposedITAT Pune08 Jun 2023

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.442/Pun/2023 िनधा"रण वष" / Assessment Year : N.A. Shree Agrasen Samiti The Commissioner Of Nanded, Vs Income Tax (Exemption), Add: C/O H No.3 1 439, Near Pune. Jain Priya Hotel, Vazirabad, Marwadi Dharamshala, Nanded – 431601 Pan: Aants 9855 L Appellant/ Assessee Respondent /Revenue Assessee By Shri Rohan Navinchandra Dedhia –Ar Revenue By Shri Keyur Patel – Cit(Dr) Date Of Hearing 08/06/2023 Date Of Pronouncement 08/06/2023 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Directed Against The Order Of Ld.Commissioner Of Income Tax (Exemption), Pune Passed Under Section 12A(1) Of The Act, Dated 31.03.2023. The Assessee Has Raised The Following Grounds Of Appeal: “1. In The Facts & Circumstances Of The Case, The Ld.Cit(E) Has Erred In Rejecting The Application Of The Appellant Trust U/S 12Ab R.W.S 12A(1)(Ac)(Iii) Terming The Transaction Of The Trust With Other Trusts As Non-Genuine. Shree Agrasen Samiti [A]

Section 12ASection 12A(1)Section 36(1)(c)

Disha Education Society, Raipur vs. Commissioner of Income Tax, Exemption, Bhopal

In the result ground of the appeal in the instant appeal of the assessee are allowed

ITA 60/RPR/2019[0]Status: DisposedITAT Raipur08 Jun 2023

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./ Ita No.32&60/Rpr/2019 (Assessment Year:) M/S Disha Education Society, Vs Commissioner Of Income Tax, Disha Crown, Katchana Road. Exemption, Bhopal Shankar Nagar, Raipur (Chhattisgarh) Pan No. :Aaatd5249C : Shri R.B.Doshi, Ca "नधा"रती क" ओर से /Assessee By राज"व क" ओर से /Revenue By : Shri V.K.Singh, Cit-Dr सुनवाई क" तार"ख / Date Of Hearing : 26/04/2023 घोषणा क" तार"ख/Date Of Pronouncement : 08/06/2023

For Respondent: Shri V.K.Singh, CIT-DR

Section 12A

Disha Education Society, Raipur vs. Commissioner of Income Tax, Exemption, Bhopal

In the result ground of the appeal in the instant appeal of the assessee are allowed

ITA 32/RPR/2019[0]Status: DisposedITAT Raipur08 Jun 2023

For Respondent: Shri V.K.Singh, CIT-DR

Section 12A

Sri Vidya Learning Centre, Hyderabad vs. CIT, (Exemption), Hyderabad

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

ITA 152/HYD/2023[2023-24]Status: DisposedITAT Hyderabad07 Jun 2023AY 2023-24

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2023-24 Sri Vidya Learning Centre Vs. Commissioner Of Income Hyderabad Tax (Exemption) Pan:Aasts8951Q Hyderabad (Appellant) (Respondent) Pan: Assessee By: Shri A Harish, Advocate Revenue By: Dr. Rajendra Kumar, Cit(Dr) Date Of Hearing: 07/06/2023 Date Of Pronouncement: 07/06/2023 Order Per Laliet Kumar, J.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 27/02/2023 Of The Learned Cit (Exemption)- Hyderabad, Against The Rejection Of Registration U/S 12A Of The Act On The Ground That The Assessee Could Not Furnish The Requisite Details As Called For By The Cit (E) On Or Before 23/12/2022. 2. Although A Number Of Grounds Have Been Raised By The Assessee, However, These All Relate To The Order Of The Cit (E) In Rejecting The Provisional Registration Granted U/S 12Ab & 80G(5) Of The I.T. Act.

For Appellant: Shri A Harish, AdvocateFor Respondent: Dr. Rajendra Kumar, CIT(DR)

Section 12A

Delhi Productivity Council, Delhi vs. CIT (Exemption), Delhi

In the result, both the appeals of assessee are dismissed

ITA 2760/DEL/2022[2022]Status: DisposedITAT Delhi07 Jun 2023

Bench: Shri N.K. Billaiya & Shri Anubhav Sharmaita Nos. 2760 & 2761/Del/2022 [Assessment Years: 2022] Delhi Productivity Council Vs. Cit(Exemption) 1E/10, Jhandewalan Extension Delhi New Delhi-110 055 Pan No. Aaatd 0844 P [Appellant] [Respondent]

For Appellant: -None-For Respondent: Ms. Parmita M. Biswas, CIT-DR

Section 12A