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

Dada Jethanand Pagrani Trust, Nashik vs. CIT (Exemption), Pune

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

ITA 137/PUN/2021[-]Status: DisposedITAT Pune19 Dec 2022

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.137/Pun/2021 िनधा"रण वष" / Assessment Year : N.A. Dada Jethanand Pagrani Trust, The Cit(Exemption), Pune. 5869, Jajuwadi Indrakund, V Nasik – 422003. S Pan: Aadtd 0396 H Appellant/ Assessee Respondent /Revenue Assessee By Shri Pramod S Shingte – Ar Revenue By Shri Keyur Patel Cit(Dr) Date Of Hearing 09/12/2022 Date Of Pronouncement 19/12/2022 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 Dated 29.03.2021 Under Section 12Aa(1)(B)(Ii) Of The Act. The Assessee Has Raised The Following Grounds Of Appeal: “1. The Learned Commissioner Of Income Tax (“Cit”) Was Not Justified In Rejecting Your Appellant’S Application For Registration Under Section 12Aa. 2. The Learned Cit Was Wrong In Stating That He Was Not Satisfied About The Genuineness Of The Activities Of The Trust, Merely Because Tax Had Not Been Paid On Specific Donations Received For A Capital Purpose In Earlier Years. 3. The Learned Cit Failed To Appreciate That Section 12Aa Requires Satisfaction Regarding Genuineness Of Activities Of The Trust & Not Of The Fund Raising By The Trust, Nor Of The Claim Made By The Trust For Exemption Of Certain Receipts. Dada Jethanand Pagrani Trust [A]

Section 11Section 12A

Darul Ulum Hajrat Abubkar Siddik, Satara vs. Commissioner of Income Tax- Exemption, Pune

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

ITA 426/PUN/2022[2021-22]Status: DisposedITAT Pune13 Dec 2022AY 2021-22

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.426/Pun/2022 िनधा"रण वष" / Assessment Year : N.A. Darul Ulum Harjat Abubkar The Commissioner Of Siddik, V Income Tax-Exemption, \Registered Sanstha Pune S Pune. Pandharpur Road, Quresh Mohalla, Phaltan Satara, Maharashtra – 415523. Pan: Aaabd 0794 L Appellant/ Assessee Respondent /Revenue Assessee By Shri Piyush Chaturvedi – Ar Revenue By Shri Keyur Patel Cit(Dr) Date Of Hearing 07/12/2022 Date Of Pronouncement 13/12/2022 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 Dated 15.01.2021 Under Section 12Aa(1)(B)(Ii) Of The Act. The Assessee Has Raised The Following Grounds Of Appeal: “1. The Ld. Cit (Exemption), Pune Erred In Rejecting/Cancelling The Registration U/S 12Aa Of The Act & Ought To Have Restored The Appellant’S Trust Registration U/S 12Aa Dated 21.03.2017. 2. The Ld. Cit (Exemption), Pune Failed To Appreciate The Facts That The Appellant Trust Has Made Application U/S 10A Following The New Procedure Laid Down For Re-Registration U/S 12Ab (Which Was Made Effected From 01.04.2021), On 18.06.2020 Itself Due To Anxiety & Uncertainty Which Everyone Was Facing In A Time Of Covid-19 & Not For Registration Of Trust When There Is A Modification In Object Of Trust After 12Aa Registration. Darul Ulum Hajrat Abukar Siddik [A]

Section 10ASection 12A

Dronagiri Sikshan Sansha, Satara vs. Commissioner of Income Tax, Exemption, Pune

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

ITA 425/PUN/2022[2020-21]Status: DisposedITAT Pune13 Dec 2022AY 2020-21

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.425/Pun/2022 िनधा"रण वष" / Assessment Year : N.A. Dronagiri Sikshan Sanstha, The Commissioner Of Mhaswad, Tal. Man, District V Income Tax-Exemption, Satara, Maharashtra – 415509. S Pune. Pan: Aaatd 7800 K Appellant/ Assessee Respondent /Revenue Assessee By Shri Piyush Chaturvedi – Ar Revenue By Shri Keyur Patel Cit(Dr) Date Of Hearing 07/12/2022 Date Of Pronouncement 13/12/2022 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 Dated 21.01.2021 Under Section 12Aa(1)(B)(Ii) Of The Act. The Assessee Has Raised The Following Grounds Of Appeal: “1. The Ld. Cit (Exemption), Pune Erred In Rejecting/Cancelling The Registration U/S 12Aa Of The Act & Ought To Have Restored The Appellant’S Trust Registration U/S 12Aa Dated 15.03.1999. 2. The Ld. Cit (Exemption), Pune Failed To Appreciate The Facts That The Appellant Trust Has Made Application U/S 10A Following The New Procedure Laid Down For Re-Registration U/S 12Ab (Which Was Made Effected From 01.04.2021), On 07.07.2020 Itself Due To Anxiety & Uncertainty Which Everyone Was Facing In A Time Of Covid-19 & Not For Registration Of Trust When There Is A Modification In Object Of Trust After 12Aa Registration. 3. The Ld. Cit (Exemption), Pune Failed To Appreciate That When The Date Of Trust Deed Mentioned In Form 10A Was Of 14.03.1996 & The Dronagiri Sikshan Sanstha [A]

Section 10ASection 12A

Sri Gurukrupa Rajjyog Charitable Trust, Satara vs. Commissioner of Income Tax, Exemption, Pune

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

ITA 424/PUN/2022[2021-22]Status: DisposedITAT Pune13 Dec 2022AY 2021-22

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.424/Pun/2022 िनधा"रण वष" / Assessment Year : N.A. Sri Gurukrupa Rajyog The Commissioner Of Charitable Trust, V Income Tax-Exemption, Krushna Apartments, Sadar S Pune. Bazar, Satara – 415001. Pan: Aajts 1357 D Appellant/ Assessee Respondent /Revenue Assessee By Shri Piyush Chaturvedi – Ar Revenue By Shri Keyur Patel Cit(Dr) Date Of Hearing 07/12/2022 Date Of Pronouncement 13/12/2022 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 Dated 15.01.2021 Under Section 12Aa(1)(B)(Ii) Of The Act. The Assessee Has Raised The Following Grounds Of Appeal: “1. The Ld. Cit (Exemption), Pune Erred In Rejecting/Cancelling The Registration U/S 12Aa Of The Act & Ought To Have Restored The Appellant’S Trust Registration U/S 12Aa Dated 04.10.2016. 2. The Ld. Cit (Exemption), Pune Failed To Appreciate The Facts That The Appellant Trust Has Made Application U/S 10A Following The New Procedure Laid Down For Re-Registration U/S 12Ab (Which Was Made Effected From 01.04.2021), On 27.07.2020 Itself Due To Anxiety & Uncertainty Which Everyone Was Facing In A Time Of Covid-19 & Not For Registration Of Trust When There Is A Modification In Object Of Trust After 12Aa Registration. Sri Gurukrupa Rajyog Charitable Trust [A]

Section 10ASection 12A