Section 12AB of the Income Tax Act

Income-tax Act, 2025: ss.332–355

Section 12AB 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 12AB is Sole Trustee, Loka Shikshana Trust v. CIT (101 ITR 234), cited in 323 of the 5,972 judgments on BharatTax that turn on this section.

Leading authorities on Section 12AB

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.

Vedabhai v. Santaram
253 ITR 798 · 2002 · Supreme Court
262
citing judgments

When substantial justice and technical considerations are in conflict, substantial justice should be prioritized. Condoning delay requires a cautious approach without malafide or dilatory tactics, and 'sufficient cause' should be interpreted liberally to advance substantial justice.

CIT v. Andhra Chamber of Commerce
55 ITR 722 · 1965 · Supreme Court
167
citing judgments

An organization qualifies as having a charitable purpose if its primary object is the advancement of general public utility, even if its members receive incidental benefits. The existence of incidental non-charitable objects does not negate its charitable status.

India Trade Promotion Organization v. DGIT(Exemption)
371 ITR 333 · 2015 · High Court
128
citing judgments

An institution engaged in the advancement of general public utility retains its charitable character and eligibility for exemptions under Section 11 or approval under Section 10(23C)(iv) provided profit is not its predominant motive, even if it generates incidental surpluses or collects fees.

Ananda Social and Educational Trust v. CIT
426 ITR 340 · 2020 · Supreme Court
116
citing judgments

For registration under Section 12AA, the Commissioner (Exemptions) must examine the objects of the trust and the genuineness of its proposed activities, even if the trust has not yet commenced actual charitable activities or incurred expenditure.

Velu Palandar v. DCIT
83 ITR 683 · 1972 · High Court
94
citing judgments

The opportunity of hearing provided to an assessee must be real, effective, and realistic, not merely notional, and tax authorities are incumbent to decide cases on their merits after affording due opportunity.

CIT v. Dawoodi Bohra Jamat
364 ITR 31 · 2014 · Supreme Court
83
citing judgments

A trust's objects, even if based on religious tenets, can qualify as charitable for tax exemptions if its benefits are not exclusively restricted to a particular religious community or caste.

CIT v. Ahmedabad Rana Caste Association
140 ITR 1 · 1983 · Supreme Court
82
citing judgments

An object beneficial to a section of the public, as distinguished from an individual or group of individuals, qualifies as an object of general public utility under Section 2(15) and hence a charitable purpose. This applies even if the benefits are restricted to a specific caste, community, or professional group.

Trustees of Shri Kot Hindu Stree Mandal v. CIT
209 ITR 396 · 1994 · High Court
80
citing judgments

Membership fees and subscription amounts received by a trust or society from its members are not considered 'voluntary contributions' under Section 12 of the Income-tax Act, as they are not gratuitous payments or gifts but are made with consideration.

CIT v. Bar Council of Maharashtra
130 ITR 28 · 1981 · Supreme Court
74
citing judgments

An organization’s purpose qualifies as 'general public utility' under section 2(15) if its primary objective is charitable, even if it incidentally benefits a specific group or generates some profit, provided the dominant motive is not profit-making. Such an entity is eligible for exemptions under the Act.

Judgments on Section 12AB

Hema Educational Trust, Nadaun, Hamirpur, Himachal Pradesh vs. ITO Exemptions Ward Solan, Himachal Pradesh

The appeal stand allowed for statistical purposes

ITA 832/CHANDI/2026[2022-23]Status: DisposedITAT Chandigarh01 Oct 2026AY 2022-23

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Rajesh Damodarlal Sharma, Jm आयकरअपीलसं./ Ita No.832/Chandi/2026 Hema Educational Trust Cit (Exemptions) बनाम/ Vs. Nadaun, Hamirpur Sector-17 Himachal Pradesh – 177033 Chandigarh "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aaath-5654-F (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Parikshit Aggarwal (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Smt. Jaishree Sharma (Cit) - Ld. Dr (Virtual Mode) सुनवाईकीतारीख/Date Of Hearing : 28-09-2026 घोषणाकीतारीख /Date Of Pronouncement 01-10-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aggrieved By Rejection Of An Application As Filed By The Assessee Seeking Registration U/S 12Ab Vide Rejection Order Dated 02.03.2026 Of Ld. Commissioner Of Income Tax (Exemption), Chandigarh, [Cit(E)], The Assessee Is In Further Appeal Before Us. Upon Perusal Of Paras 4.3 & 5 Of The Impugned Order, It Could Be Seen That The Registration Has Been Denied On The Ground That No Concrete Steps Were Shown To Have Been Taken By The Assessee Towards Revival Of Its Stated Educational Activities. It Has Been Observed By Ld. Cit(E) That Mere

For Appellant: Sh. Parikshit Aggarwal (CA) – Ld. ARFor Respondent: Smt. Jaishree Sharma (CIT) - Ld. DR
Section 12A

Akal Educational Society, Jalandhar vs. Commissioner of Income Tax Exemptions, Chandigarh

The appeal stand dismissed as withdrawn

ITA 1083/CHANDI/2026[2025-26]Status: DisposedITAT Chandigarh01 Oct 2026AY 2025-26

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Rajesh Damodarlal Sharma, Jm आयकरअपीलसं./ Ita No.1083/Chandi/2026 Akal Education Society Cit (Exemptions) बनाम/ Vs. C/O Surinder Mahajan & Associates Cr Building, Himalaya Marg 74, Vijay Nagar, Jalandhar - 144001 Sector 17E, Chandigarh – 160017 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aabaa-1932-D (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Withdrawal Application Dated 26.09.2026 ""थ"कीओरसे/Respondent By : Smt. Jaishree Sharma (Cit) - Ld. Dr (Virtual Mode) सुनवाईकीतारीख/Date Of Hearing : 28-09-2026 घोषणाकीतारीख /Date Of Pronouncement 01-10-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aggrieved By Rejection Of An Application As Filed By The Assessee Seeking Registration U/S 12Ab Vide Impugned Order Dated 28.02.2026 Of Ld. Commissioner Of Income Tax (Exemptions), Chandigarh The Assessee Is In Further Appeal Before Us. 2. The Assessee Seek Withdrawal Of The Appeal Vide Letter Dated 26.09.2026 On The Ground That This Appeal Is Required To Be Filed Before Amritsar Benches. Accordingly, Permission Has Been Sought Seeking

For Appellant: Withdrawal Application dated 26.09.2026For Respondent: Smt. Jaishree Sharma (CIT) - Ld. DR
Section 12A

Punjab Urban Planning and Development Authority, Mohali vs. Income Tax Officer, Ward 6(1), Mohali

The appeals stand allowed for statistical purposes

ITA 636/CHANDI/2024[2021-22]Status: DisposedITAT Chandigarh01 Oct 2026AY 2021-22

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Rajesh Damodarlal Sharma, Jm 1. आयकर अपील सं. / Ita No.633/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकर अपील सं. / Ita No.634/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकर अपील सं. / Ita No.635/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2017-18) & 4. आयकर अपील सं. / Ita No.636/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2021-22) Punjab Urban Planning & Dcit Circle – 6(1) Development Authority (Puda) Mohali, Punjab बनाम/ Vs. Room No. 301, 3Rd Floor Puda Bhawan, Sector – 62 Mohali, Punjab – 160062 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aaalp-0045-J (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Parikshit Aggarwal (Ca) & Sh. Hrithik Singla (Ca) – Ld. Ars ""थ"कीओरसे/Respondent By : Smt. Jaishree Sharma (Cit) Ld. Dr (Virtual) सुनवाईकीतारीख/Date Of Hearing : 22-09-2026 घोषणाकीतारीख /Date Of Pronouncement 01-10-2026 :

For Appellant: Sh. Parikshit Aggarwal (CA) &For Respondent: Smt. Jaishree Sharma (CIT) Ld. DR (Virtual)
Section 10(20)Section 12ASection 142Section 143(3)