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

Gayatri Parivar Trust, Bhatapara vs. Commissioner of Income Tax(Exemption), Bhopal

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

ITA 220/RPR/2019[2019-20]Status: DisposedITAT Raipur12 Dec 2022AY 2019-20

Bench: Shri Ravish Sood & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.220/Rpr/2019 िनधा"रण वष" / Assessment Year :- Gayatri Parivar Trust, The Commissioner Of Income New Bus Stand, Baloda Vs Tax(Exemption), Bhopal. Bazar, Bhatapara, Chattisgarh – 493118. Pan: Aactg 9688 A Appellant/ Assessee Respondent /Revenue Assessee By None Revenue By Shri Debashish Lahiri – Cit(Dr) Date Of Hearing 02/11/2022 Date Of Pronouncement 12/12/2022 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), Bhopal, Passed Under Section 12Aa Of The Income Tax, 1961 Dated 27.09.2019 . The Assessee Has Raised The Following Grounds Of Appeal: “1. That The Order Of Commissioner Of Income(Exemption) Dated 27.09.2019 Under Section 12Aa(1)(B)(Ii) Declining Registration U/S 12Aa Is Bad In Law As Well As On Facts. 2. That The Commissioner Of Income(Exemption) Has Grossly Erred In Law & On Facts In Rejecting The Grant Of Registration Under Section 12Aa Of The Income Tax Act Without Granting Proper Opportunity Of Being Heard. 3. On The Facts & Circumstances Of The Case, The Appellant Society Ought To Have Been Granted Registration Under Section 12Aa Of The Income Tax Act, 1961. Gayatri Parivar Trust [A]

Section 12A

Shree Marutideo Sarvajanik Trust, Satara vs. Commissioner of Income Tax, Exemption, Pune

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

ITA 423/PUN/2022[2021-22]Status: DisposedITAT Pune09 Dec 2022AY 2021-22

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.423/Pun/2022 िनधा"रण वष" / Assessment Year : N.A. Shree Marutideo Sarvajanik The Commissioner Of Trust, V Income Tax-Exemption, At Post Dhamner, Tal Koregaon, S Pune. District Satara, Maharashtra – 415511. Pan: Aagts 5930 D Appellant/ Assessee Respondent /Revenue Assessee By Piyush Chaturvedi – Ar Revenue By Shri Keyur Patel Cit(Dr) Date Of Hearing 07/12/2022 Date Of Pronouncement 09/12/2022 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 14.01.2021 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 03.04.2002. 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 22.06.2020 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. Shree Marutideo Sarvajanik Trust [A]

Section 10ASection 12A

Deputy Commissioner of Income-Tax, (Exemption), Circle, Pune vs. Maharashtra Education Society, Pune

In the result, the appeal filed by the Revenue stands allowed

ITA 1577/PUN/2019[2015-16]Status: DisposedITAT Pune05 Dec 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.1408/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Maharashtra Education Vs. Dcit (Exemption), Pune. Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune-411030. Pan : Aaatm1730E Appellant Respondent आयकर अपील सं. / Ita No.1577/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit (Exemption), Pune. Vs. Maharashtra Education Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune- 411030. Pan : Aaatm1730E Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 24.11.2022 Date Of Pronouncement : 05.12.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Cross Appeals Filed By The Assessee As Well As By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16. Ita No.1408/Pun/2019 – By Assessee : 2. During Course Of Hearing, The Ld. Ar Did Not Press Grounds Of Appeal. Therefore, We Dismiss The Appeal Of The Assessee As Not Pressed. 3. In The Result, The Appeal Of The Assessee Stands Dismissed.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 11(1)(a)Section 12ASection 143(3)

Maharashtra Education Society (Mes), Pune vs. Deputy Commissioner of Income-Tax, (Exemption), Pune

In the result, the appeal filed by the Revenue stands allowed

ITA 1408/PUN/2019[2015-16]Status: DisposedITAT Pune05 Dec 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.1408/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Maharashtra Education Vs. Dcit (Exemption), Pune. Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune-411030. Pan : Aaatm1730E Appellant Respondent आयकर अपील सं. / Ita No.1577/Pun/2019 िनधा"रण वष" / Assessment Year: 2015-16 Dcit (Exemption), Pune. Vs. Maharashtra Education Society (Mes), Mes Bhavan, 1214-1215, Sadashiv Peth, Pune- 411030. Pan : Aaatm1730E Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 24.11.2022 Date Of Pronouncement : 05.12.2022 आदेश / Order Per Inturi Rama Rao, Am: These Are The Cross Appeals Filed By The Assessee As Well As By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 10, Pune [‘The Cit(A)’] Dated 16.07.2019 For The Assessment Year 2015-16. Ita No.1408/Pun/2019 – By Assessee : 2. During Course Of Hearing, The Ld. Ar Did Not Press Grounds Of Appeal. Therefore, We Dismiss The Appeal Of The Assessee As Not Pressed. 3. In The Result, The Appeal Of The Assessee Stands Dismissed.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 11(1)(a)Section 12ASection 143(3)