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

Jivan Jyot Trust, Umreth vs. The ITO, Ward-1, Anand

The appeal of the assessee is treated as allowed for statistical purposes

ITA 697/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad17 Feb 2026AY 2020-21

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.697/Ahd/2025 िनधा"रण वष" /Assessment Year : 2020-21 Jivan Jyot Trust The Ito बनाम/ 6, Yamuna Park Society Ward-1 V/S. C/O. Dr Mb Bhagat, Anand – 388 001 Ode Bazar Umreth – 388 220 (Gujarat) "थायी लेखा सं./Pan: Aaaaj 1506 F (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri S.N. Divatia, Ar Revenue By : Shri Alpesh Parmar, Cit, Dr सुनवाई की तारीख/Date Of Hearing : 19/112025 घोषणा की तारीख /Date Of Pronouncement: 17/02/2026 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 (Appeals), [Addl/Jcit(A) Mysore, National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As ‘Cit(A)’] Dated 14/02/2025 Passed U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For The Assessment Year (Ay) 2020-21. 2. The Assessee Is A Public Charitable Trust & Is Registered U/S. 12A Of The Income Tax Act, 1961 (For Short “The Act”) & Is Also Approved U/S.80G (5) Of The Act. The Assessee Filed Its Return Of Income (Itr) For Ay 2020-21 Jivan Jyot Trust Vs. Ito Asst.Year : 2020-21

For Appellant: Shri S.N. Divatia, ARFor Respondent: Shri Alpesh Parmar, CIT, DR
Section 12ASection 143(1)Section 250Section 80G

Shri Narayan Jan Kalyan Ewam Gramin Vikas Samiti, Barnahal Mainpuri Up vs. ITO Exemption Ghaziabad, Income Tax Office Exemption Ghaziabad

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose

ITA 244/DEL/2026[2017-2018]Status: DisposedITAT Delhi17 Feb 2026AY 2017-2018

Bench: Shri Vikas Awasthyआअसं.244/धिल्ली/2026 (नि.व. 2017-18) Shri Narayan Jan Kalyan Ewam Gramin Vikas Samiti Barnahal Mainpuri, Uttar Pradesh, 205261 ...... अपीलार्थी/Appellant Pan: Aaoas-9172-N बिाम Vs. Income Tax Office [Exemption], ..... प्रनिवादी/Respondent Ghaziabad, Uttar Pradesh अपीलार्थी द्वारा/Appellant By : Shri Rajeev Kumar Kulshreshtha, Advocate प्रधििािीद्वारा/Respondent By : Shri Manoj Kumar, Sr. Dr सुिवाई की निथर्थ/ Date Of Hearing : 17/02/2026 घोषणा की निथर्थ/ Date Of Pronouncement : 17/02/2026 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Order Of Additional/Joint Commissioner Of Income-Tax (Appeals)-1, Nashik (Hereinafter Referred To As ‘The Cit (A)’) Dated 27.06.2025, For Assessment Year 2017-18. 2. The Appeal Is Time Barred By 32 Days. The Assessee Has Filed An Application For Condonation Of Delay Supported By An Affidavit Citing Reasons Causing Delay In Filing Of Appeal. After Perusal Of The Same, I Am Satisfied That Delay In Filing Of Appeal Is Not Intentional. The Delay Has Been Caused For The Reasons Stated In Petition Which Appears To Be Bonafide. Thus, Delay Of 32 Days In Filing Of Appeal Is Condoned & Appeal Is Admitted For Decision On Merits.

For Appellant: Shri Rajeev Kumar Kulshreshtha, AdvocateFor Respondent: Shri Manoj Kumar, Sr. DR
Section 10Section 12ASection 143(3)