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

D.Y. International University, Pune vs. Commissioner of Income-Tax (Exemption), Pune

Appeal is allowed for statistical purpose

ITA 627/PUN/2020[2020-21]Status: DisposedITAT Pune01 Nov 2022AY 2020-21

Bench: Shri S.S.Godaraand Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No’S.416 & 627/Pun/2020 िनधा"रण वष" / Assessment Year :- D.Y.Patil International The Commissioner Of University, Sector 29, Nigdi V Income Tax(Exemption), Pradhikaran, Akurdi, S Pune. Pune – 411044. Pan: Aaajd 1365 R Appellant/ Assessee Respondent /Revenue Assessee By Shri S N Puranik – Ar Revenue By Shri Naveen Gupta – Dr Date Of Hearing 10/08/2022 Date Of Pronouncement 01/11/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: Both These Appeals Arises Out Of Ld.Cit(Exemption) Orders Rejecting Assessee’S Application Under Section 12Aa Of The Income Tax Act, 1961. Both These Appeals Were Clubbed, Heard Together & Disposed Of By A Common Order. The Assessee In Ita No.627/Pun/2020 Raised The Following Grounds Of Appeal: “1. Commissioner Of Income Tax(Exemption), Pune Has Erred In Rejecting Registration U/S..12A/12Aa Of The Income Tax Act, 1961. Same May Please Be Granted. 2. Honorable Cit Has Erred In Alleging Non-Compliances. In Fact, It Appears Cit(Exemptions) Has Not Applied His Mind To Submissions Made & On His Record. 3. Honourable Cit(Exemptions Has Erred In Stating “I Am Not Satisfied About The Charitable Nature Of The Object As Well As Genuineness Of Activities Of The Institution” When The University Is Established By Special Act By Statute.

Section 12A

D Y Patil Inrternational University, Pune vs. Cimmissioner of Income Tax, (Exemption), Pune

Appeal is allowed for statistical purpose

ITA 416/PUN/2020[2019-2020]Status: DisposedITAT Pune01 Nov 2022AY 2019-2020

Bench: Shri S.S.Godaraand Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No’S.416 & 627/Pun/2020 िनधा"रण वष" / Assessment Year :- D.Y.Patil International The Commissioner Of University, Sector 29, Nigdi V Income Tax(Exemption), Pradhikaran, Akurdi, S Pune. Pune – 411044. Pan: Aaajd 1365 R Appellant/ Assessee Respondent /Revenue Assessee By Shri S N Puranik – Ar Revenue By Shri Naveen Gupta – Dr Date Of Hearing 10/08/2022 Date Of Pronouncement 01/11/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: Both These Appeals Arises Out Of Ld.Cit(Exemption) Orders Rejecting Assessee’S Application Under Section 12Aa Of The Income Tax Act, 1961. Both These Appeals Were Clubbed, Heard Together & Disposed Of By A Common Order. The Assessee In Ita No.627/Pun/2020 Raised The Following Grounds Of Appeal: “1. Commissioner Of Income Tax(Exemption), Pune Has Erred In Rejecting Registration U/S..12A/12Aa Of The Income Tax Act, 1961. Same May Please Be Granted. 2. Honorable Cit Has Erred In Alleging Non-Compliances. In Fact, It Appears Cit(Exemptions) Has Not Applied His Mind To Submissions Made & On His Record. 3. Honourable Cit(Exemptions Has Erred In Stating “I Am Not Satisfied About The Charitable Nature Of The Object As Well As Genuineness Of Activities Of The Institution” When The University Is Established By Special Act By Statute.

Section 12A

Sri Shirdi Sai Baba Satsang Seva Charitable Trust, Bhilai vs. Commissioner of Income Tax(Exemption, Bhopal

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

ITA 201/RPR/2019[2018-19]Status: DisposedITAT Raipur17 Oct 2022AY 2018-19

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.201/Rpr/2019 (ननधाारण वषा / Assessment Year :Na) Sri Shirdi Sai Baba Satsang Seva Vs Cit(Exemption), Bhopal Charitable Trust, Plot No.98, Pragati Nagar, Risali, Bhilai, Dist : Durgq Pan No. : Aaits 4066 J (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : Shri R.B.Doshi, Ca राजस्व की ओर से /Revenue By : Shri P.Kmishra, Cit-Dr सुनिाई की तारीख / Date Of Hearing : 04/08/2022 घोषणा की तारीख/Date Of Pronouncement : 17/10/2022 आदेश / O R D E R Per Arun Khodpia, Am : This Appeal Is Filed By The Assessee Against The Order Passed By The Cit(E), Bhopal, Dated 30.09.2019. 2. The Sole Ground Raised By The Assessee In This Appeal Is Against The Action Of The Cit(E) In Rejecting The Application Of The Assessee Filed For Exemption U/S.80G Of The Act. 3. Brief Facts Of The Case Are That The Assessee Trust Filed An Application Seeking Approval U/S.80G Of The Act In Form No.10G On 08.03.2019. The Cit(E) Rejected The Application Of The Assessee Holding That The Genuineness Of The Activities Of The Assessee Could Not Verified. 4. Against The Rejection Of Application Of The Assessee For Approval U/S.80G Of The Act By The Cit(E), The Assessee Is Now In Appeal Before The Tribunal.

For Appellant: Shri R.B.Doshi, CAFor Respondent: Shri P.KMishra, CIT-DR
Section 11Section 12ASection 143(3)Section 80GSection 80G(5)