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

Shri Gurukul Chittorgarh, Chittorgarh vs. CIT(E), Jaipur

In the result, the appeal of the assessee is allowed

ITA 849/JODH/2026[NA]Status: DisposedITAT Jodhpur12 Aug 2026

Bench: Shri Amit Shukla, Hon’Ble & Shri Girish Agrawal, Hon’Bleshri Gurukul Chittorgarh Cit Exemption Kalani & Co. Llp, Chartered Jaipur Accountants, 5Th Floor, Milestone Building, Gandhinagar Turn, Tonk Road, Jaipur-302015 Pan No. Aadts 2321 K Assessee By Yogesh Parwal, Ca (Virtual) Revenue By O.P. Meena. Cit-Dr (Physical) Date Of Hearing 12 / 08 / 2026. Date Of Pronouncement 12 / 08 / 2026. Order Per Bench: The Aforesaid Appeal Has Been Filed By The Assessee Against The Impugned Order Dated 24.03.2026 Passed By The Ld. Commissioner Of Income Tax (Exemption), Jaipur, Whereby The Application Filed By The Assessee In Form No. 10Ab Seeking Approval Under Section 80G(5) Of The Income-Tax Act, 1961 Has Been Rejected. From A Perusal Of The Impugned Order, It Is Seen That The Assessee Had Filed Its Application On 29.09.2025 Seeking Approval Under Section 80G(5). During The Course Of Proceedings, A Deficiency Letter Dated 31.01.2026 Was Issued To The 2 Asst. Year: Na Assessee, In Response To Which A Reply Was Duly Furnished. The Ld. Cit(E), However, Rejected The Application Essentially On The Solitary Ground That The Assessee Did Not Possess A Valid Registration Under Section 12A/12Ab For The Period For Which Approval Under Section 80G Had Been Sought. According To The Ld. Cit(E), Registration Under Section 12A/12Ab Or Notification Under Section 10(23C) Was A Precondition For Grant Of Approval Under Section 80G And, Since According To Him The Assessee Did Not Have A Valid Registration Under Section 12Ab, The Application Was Held To Be Ineligible & Accordingly Rejected.

Section 10Section 12ASection 3Section 80GSection 80G(5)Section 80G(5)(i)

Shri Radhe Krishna Gaushala Sewa Samiti Dholerav Khurd, Shri Radhe Krishna Gaushala Sewa Samiti Dholerav K vs. Commissioner of Income Tax (Exemption), Jaipur

In the result, both the appeals of the assessees are allowed

ITA 78/JODH/2026[2025-26]Status: DisposedITAT Jodhpur12 Aug 2026AY 2025-26

Bench: Shri Amit Shukla, Hon’Ble & Shri Girish Agrawal, Hon’Bleshri Ram Gaushala Gau Seva Cit Exemption Samiti Raliyawata Jaipur Shri Ram Gaushala Gau Seva Samiti Raliyawata, Nagaur- 341510 Pan No. Abeas 8055 K Shri Radhe Krishna Gaushala Cit Exemption Sewa Samiti Dholerav Jaipur Shri Radhe Krishna Gaushala Sewa Samiti Dholerav, Khurd- 341510 Pan No. Abtas 0374 C Assessee By Rajesh Bhawsinghka, Advocate (Physical) Revenue By O.P. Meena. Cit-Dr (Physical) Date Of Hearing 12 / 08 / 2026. Date Of Pronouncement 12 / 08 / 2026. Order Per Bench: The Above Captioned Appeals Have Been Filed By The Respective Assessees Against Separate Impugned Orders, Both Dated 27.09.2025, Passed By The Ld. Asst. Year: 2025-26 Commissioner Of Income Tax (Exemption), Jaipur, Whereby The Applications Filed By The Assessees Seeking Registration Under Section 12Ab Of The Income-Tax Act, 1961 Have Been Rejected. Ita No. 77/Jodh/2026 Is In The Case Of Shri Ram Gaushala Gau Seva Samiti, Raliyawata, Whereas Ita No. 78/Jodh/2026 Is In The Case Of Shri Radhe Krishna Gaushala Sewa Samiti, Dholerav Khurd. Since The Facts, Nature Of Charitable Activities & The Reason For Rejection In Both The Appeals Are Substantially Identical, They Were Heard Together & Are Being Disposed Of By This Consolidated Order.

Section 12A

Shri Ram Gaushala Gau Seva Samiti Raliyawata vs. CIT (Exemptions), Jaipur

In the result, both the appeals of the assessees are allowed

ITA 77/JODH/2026[2025-26]Status: DisposedITAT Jodhpur12 Aug 2026AY 2025-26

Bench: Shri Amit Shukla, Hon’Ble & Shri Girish Agrawal, Hon’Bleshri Ram Gaushala Gau Seva Cit Exemption Samiti Raliyawata Jaipur Shri Ram Gaushala Gau Seva Samiti Raliyawata, Nagaur- 341510 Pan No. Abeas 8055 K Shri Radhe Krishna Gaushala Cit Exemption Sewa Samiti Dholerav Jaipur Shri Radhe Krishna Gaushala Sewa Samiti Dholerav, Khurd- 341510 Pan No. Abtas 0374 C Assessee By Rajesh Bhawsinghka, Advocate (Physical) Revenue By O.P. Meena. Cit-Dr (Physical) Date Of Hearing 12 / 08 / 2026. Date Of Pronouncement 12 / 08 / 2026. Order Per Bench: The Above Captioned Appeals Have Been Filed By The Respective Assessees Against Separate Impugned Orders, Both Dated 27.09.2025, Passed By The Ld. Asst. Year: 2025-26 Commissioner Of Income Tax (Exemption), Jaipur, Whereby The Applications Filed By The Assessees Seeking Registration Under Section 12Ab Of The Income-Tax Act, 1961 Have Been Rejected. Ita No. 77/Jodh/2026 Is In The Case Of Shri Ram Gaushala Gau Seva Samiti, Raliyawata, Whereas Ita No. 78/Jodh/2026 Is In The Case Of Shri Radhe Krishna Gaushala Sewa Samiti, Dholerav Khurd. Since The Facts, Nature Of Charitable Activities & The Reason For Rejection In Both The Appeals Are Substantially Identical, They Were Heard Together & Are Being Disposed Of By This Consolidated Order.

Section 12A