Section 12AA of the Income Tax Act

The decision most relied on for Section 12AA is ACIT v. Ahmedabad Urban Development Authority (143 Taxmann.com 278), cited in 390 of the 4,243 judgments on BharatTax that turn on this section.

Leading authorities on Section 12AA

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.

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.

Queen’s Educational Society v. CIT
372 ITR 699 · 2015 · Supreme Court
152
citing judgments

An educational institution that generates a surplus does not automatically lose its charitable status or cease to exist solely for educational purposes. This is true if the surplus is reinvested for its educational objectives, and the predominant object test determines if the institution's primary aim is education or profit.

Union of India v. Exide Industries
425 ITR 1 · 2020 · Supreme Court
146
citing judgments

The provision for leave encashment is allowable as a deduction only on an actual payment basis under Section 43B(f) of the Income Tax Act, 1961. The Supreme Court upheld the constitutional validity of Section 43B(f).

Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax
31 ITR 28 · 1957 · Supreme Court
137
citing judgments

Expenditure incurred for commercial expediency, even without a direct or immediate benefit but indirectly facilitating business, is deductible as laid out wholly and exclusively for trade. The scope of reference jurisdiction under Section 66 is limited to questions of law, allowing challenges to Tribunal findings of fact only if they are perverse, unreasonable, or lack evidence.

R.B. Jodha Mal Kuthiala v. CIT
82 ITR 570 · 1971 · Supreme Court
131
citing judgments

Tax laws must be interpreted reasonably and in consonance with justice, even though equitable considerations are generally irrelevant in their interpretation.

Sarvodaya Charitable Trust v. ITO (Exemption)
125 Taxmann.com 75 · 2021 · High Court
129
citing judgments

The filing of Form 10B for claiming exemption under sections 11 and 12 is directory, not mandatory. A delay in filing Form 10B can be condoned, and exemption cannot be denied solely on this ground if the assessee satisfies other conditions and shows sufficient cause.

ACIT v. Surat City Gymkhana
300 ITR 214 · 2008 · Supreme Court
125
citing judgments

Once an institution receives registration under Section 12AA, the Assessing Officer must compute its income as per Section 11, focusing only on the application of income and not re-examining the charitable nature of its activities. The Supreme Court also clarified the meaning and scope of 'general public utility' under Section 2(15).

Judgments on Section 12AA

Sh.Shree Guru Nanak Dev Quin-Centenary Celebration Committee, Ludhiana vs. Income Tax Officer (Exemption), Jalandhar

In the result, appeal of the assessee is allowed

ITA 238/ASR/2019[2010-11]Status: DisposedITAT Amritsar30 Jun 2020AY 2010-11

Bench: Shri L.P. Sahu, Am & Shri Ravish Sood, Jm आयकर अपील सं./Ita No.238/Asr/2019 आयकर अपील सं आयकर अपील सं आयकर अपील सं (िनधा"रण िनधा"रण वष" वष" / Assessment Year :2010-2011) िनधा"रण िनधा"रण वष" वष" Shree Guru Nanak Dev Vs. Ito(Exemptions) Ward, Quin-Centenary Celebrations Jalandhar Committee, Guru Nanak Bhawan, Ludhiana "थायी लेखा सं./Panno. : Aawfs 2431 F .. (अपीलाथ" /Appellant) (" यथ" / Respondent) : Shri S.K.Mukhi, Advocate िनधा"!रती क" क" क" ओर क" ओर ओर सेसेसेसे /Assessee By ओर ओर सेसेसेसे /Revenue By : Shri M.P.Singh, Cit-Dr राज"व क" क" क" ओर क" ओर ओर सुनवाई क" तार'ख / Date Of Hearing : 06/02/2020 घोषणा क" तार'ख/Date Of Pronouncement : 30/06/2020 आदेश आदेश / O R D E R आदेश आदेश Per L.P.Sahu, Am: This Is An Appeal Filed By The Assessee Against The Order Of Cit(A)-4, Ludhiana, Dated 08.02.2019, On The Following Grounds Of Appeal :- 1. That The Orders Of Ld. Cit(A) Is Illegal, Erroneous & Perverse & Thus Needs To Be Quashed. 2. That The Issuance Of Notice U/S 147/148 Is Bad In Law As No New Material Was There With The Ao To Initiate Action U/S 147 & The Proceedings In Furtherance Of Illegal Notice Are Void Ab-Initio & Deserve To Be Set Aside. 3. That The Addition Made By Ao & Partially Confirmed By Cit (A) Is Devoid Of Proper Appreciation Of Facts On Record & Against Express Provisions Of Law & Deserve To Be Set Aside. 4. That The Appellant Craves Leave To Add, Amend Or Delete Any Of The Grounds Of Appeal On Or Before The Disposal Of The Present Appeal. 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income On 15.06.2010 Declaring Total Income After Claiming Exemption

For Respondent: Shri M.P.Singh, CIT-DR
Section 12ASection 144Section 147Section 148

M/S. Master Jaswant Singh Educational Society, Ludhiana vs. Commissioner of Income Tax (Exemptions), Chandigarh

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

ITA 575/ASR/2018[2017-18]Status: DisposedITAT Amritsar30 Jun 2020AY 2017-18

Bench: Shri L.P. Sahu, Am & Shri Ravish Sood, Jm आयकर अपील सं./Ita No.575/Asr/2018 आयकर अपील सं आयकर अपील सं आयकर अपील सं (िनधा"रण िनधा"रण वष" वष" / Assessment Year :2017-2018) िनधा"रण िनधा"रण वष" वष" M/S Master Jaswant Singh Vs. Cit(E), Chandigarh Educational Society, Village Balala, Tehsil: Samrala, Dist : Ludhiana (Punjab) "थायी लेखा सं./Panno. : Aagam 0541 H .. (अपीलाथ" /Appellant) (" यथ" / Respondent) : Shri Sudhir Sehgal, Advocate िनधा"!रती क" क" क" ओर क" ओर ओर सेसेसेसे /Assessee By ओर ओर सेसेसेसे /Revenue By : Shri M.P.Singh, Cit-Dr राज"व क" क" क" ओर क" ओर ओर सुनवाई क" तार'ख / Date Of Hearing : 06/02/2020 घोषणा क" तार'ख/Date Of Pronouncement : 30/06/2020 आदेश आदेश / O R D E R आदेश आदेश Per L.P.Sahu, Am: This Is An Appeal Filed By The Assessee Against The Order Of Cit(E), Chandigarh, Dated 26.03.2018. 2. As Per The Office Note, There Is A Delay Of 175 Days In Filing The Appeal. In This Regard, Ld. Ar Of The Assessee Has Filed An Application Dated 23.11.2018 Along With Affidavit For Condonation Of Delay, Copies Of Which Are Placed On Record. Ld. Dr Has Also Not Objected To Condone The Delay In Filing The Appeal By The Assessee. Considering The Application Of The Assessee, Wherein The Assessee Has Stated Sufficient Reason For Condonation Of Delay, We Condone The Delay Of 175 Days In Filing The Present Appeal By The Assessee & Appeal Is Heard Finally.

For Respondent: Shri M.P.Singh, CIT-DR
Section 12A

Sumitra Devi Arya Sr.Sec.School, Dinanagar vs. Commissioner of Income Tax (Exemptions), Chandigarh

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

ITA 546/ASR/2018[2018-19]Status: DisposedITAT Amritsar30 Jun 2020AY 2018-19

Bench: Shri L.P. Sahu, Am & Shri Ravish Sood, Jm आयकर अपील सं आयकर अपील सं./Ita No.546/Asr/2018 आयकर अपील सं आयकर अपील सं (िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" / Assessment Year :2018-2019) वष" Sumitra Devi Arya Sr. Secondary Vs. Cit(E), Chandigarh School, G.T.Road, Dinanagar, Punjab "थायी लेखा सं./Panno. : Aahas 4715 J .. (अपीलाथ" /Appellant) (" यथ" / Respondent) : Shri Ashwani Kalia, Ca िनधा"!रती क" क" क" ओर क" ओर ओर सेसेसेसे /Assessee By ओर ओर सेसेसेसे /Revenue By : Shri M.P.Singh, Cit-Dr राज"व क" क" क" ओर क" ओर ओर : 06/02/2020 सुनवाई क" तार'ख / Date Of Hearing घोषणा क" तार'ख/Date Of Pronouncement : 30/06/2020 आदेश आदेश / O R D E R आदेश आदेश Per L.P.Sahu, Am: The Assessee Has Filed This Appeal Against The Order Of Cit(E), Chandigarh, Dated 31.08.2018. 2. Though The Assessee Has Raised As Many As Nine Grounds Of Appeal, However, The Sole & Substantive Issue Involved In The Present Appeal Of The Assessee Is With Regard To Rejection Of Application Of Assessee For Grant Of Registration U/S.12A Of The Act By The Cit(E). 3. Brief Facts Of The Case Are That The Assessee Filed An Application In Form No.10A Before The Cit(E) Seeking Registration U/S.12A Of The Act, 1961. However, The Cit(E) Rejected The Application Of The Assessee Observing That The Assessee Society Does Not Fulfill The Conditions Laid Down For Grant Of Registration U/S.12A Of The Act.

For Respondent: Shri M.P.Singh, CIT-DR
Section 12A

Shiv Shakti Mandir, Jalandhar vs. Commissioner of Income Tax (Exemptions), Chandigarh

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

ITA 533/ASR/2018[2018-19]Status: DisposedITAT Amritsar30 Jun 2020AY 2018-19

Bench: Shri L.P. Sahu, Am & Shri Ravish Sood, Jm आयकर अपील सं आयकर अपील सं./Ita No533/Asr/2018 आयकर अपील सं आयकर अपील सं (िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" / Assessment Year :Na) वष" Shiv Shakti Mandir, Vs. Cit(E), Chandigarh 180, Lajpat Nagar, Jalandhar "थायी लेखा सं./Panno. : Caasas 8910 Q .. (अपीलाथ" /Appellant) (" यथ" / Respondent) िनधा"!रती क" क" ओर ओर सेसेसेसे /Assessee By : Shri J.S.Bhasin, Advocate क" क" ओर ओर राज"व क" क" ओर ओर सेसेसेसे /Revenue By : Shri M.P.Singh, Cit-Dr क" क" ओर ओर सुनवाई क" तार'ख / Date Of Hearing : 06/02/2020 घोषणा क" तार'ख/Date Of Pronouncement : 30/06/2020 आदेश आदेश / O R D E R आदेश आदेश Per L.P.Sahu, Am: This Is An Appeal Filed By The Assessee Against The Order Of Cit(E), Chandigarh, Dated 28.09.2018. 2. The Sole Issue Involved In The Present Appeal Of The Assessee Is With Respect To Rejection Of Application For Grant Of Registration U/S.12Aa Of The Act. 3. Brief Facts Of The Case Are That The Assessee Filed An Application In Form No.10A Dated 29.02.2018 Seeking Registration U/S.12Aa Of The Act, However, The Cit(E) Rejected The Application For Grant Of Registration On The Ground That The Assessee-Society Intents To Accumulate Assets.

For Appellant: Shri J.S.Bhasin, AdvocateFor Respondent: Shri M.P.Singh, CIT-DR
Section 12A