Section 12A

Section 12A - Page 4

Pre-School falls in the term 'education' as envisaged u/s 2(15)

Green Acres Educational Trust Vs. DCIT (ITAT Mumbai) -

The education has got different meaning, purpose or object for each person depending upon its position and background. We have education of various types e.g. Pre-schooling, schooling, higher education, professional education, vocational training, professions training etc etc....

Earning of profit from an incidental activity does not affect charitable status

DIT Vs M/s Lala Lajpatrai Memorial Trust (Bombay High Court) -

Even after amendment of the Trust Deed the main object of the trust was to promote education. Letting out was incidental and not the principle activity of the assessee trust.Thus carrying out such incidental activity and the income derived from it is used for the educational institute and not for any particular person & thus newly inserte...

Posted Under: Income Tax | Judiciary | All High Courts, Bombay High Court

Coaching Class Income of ICAI is exempt

Dy. Director of Income Tax (E) Vs ICAI (ITAT Delhi) -

The assessee is registered u/s. 12A of the Income Tax Act, 1961 (hereinafter referred the Act) and has been claiming exemption u/s. 11 of the Act which has been denied by the Assessing Officer mainly on the ground that the assessee is involved in commercial activities as the assessee receives coaching fees from the students of CA while gi...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

Exit tax where charitable institution converts into non-charitable

In order to ensure that the intended purpose of exemption availed by trust or institution is achieved, a specific provision in the Act is required for imposing a levy in the nature of an exit tax which is attracted when the organization is converted into a non-charitable organization or gets merged with a non-charitable organization or do...

Posted Under: Income Tax | Articles

Cancellation of Registration U/s 12AA(3) should be based on activities of Trust and not of Trustees

Friends of WWB India Vs Director of Income Tax (Exemption) (ITAT Ahmedabad) -

In the case of Friends of WWB India Vs The Director of Income Tax (Exemption) Ahmedabad, it was held that registration u/s 12AA cannot be cancelled under the provision of section 12AA(3) unless the activities of trust are not found in accordance with the provision rather than the trustees....

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Ahmedabad

Common errors in taxation of charitable and religious organization

Very often we get involve in rendering of professional services to charitable and religious organization commonly called as NGO, NPO etc. These services include Auditing, Accounting, Taxation, consultancy, foreign transaction related issues etc. In this regard as far as taxation services are concerned some common errors frequently happen ...

Posted Under: Income Tax | Articles

Registration u/s 12AA not to be denied to a trust not having any formal deed of trust, even oral deed may suffice

Tsurphu Labrang Vs DIT (Exemptions) (ITAT Delhi) -

ITAT Delhi held In the case of Tsurphu Labrang vs. DIT (Exemptions) that Rule 17A itself provides that it is not necessary that the Institution/Trust should be established under an instrument. The Rule 17A does not prescribe that in case the Institution/Trust...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

Denying registration u/s 12AA by testing ancillary objects rather than main objects for their charitable nature is unfair

Nanda Gokula Vs CIT (ITAT Bangalore) -

The ITAT Bangalore in the case of Nanda Gokula vs. CIT held that denial of registration u/s 12AA by the CIT by considering only the ancillary objects is unfair, because it is the main objects of the trust which are required to be tested for their charitable nature. ...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Bangalore

Proviso to section 12A(2) is to be construed as retrospective in operation

Sree Sree Ramkrishna Samity Vs D.C.I.T (ITAT Kolkata) -

since the only reason for denial of exemption u/s 11 was absence of registration u/s 12AA (which was granted to assessee society on 29.10.2010 with effect from 1.4.2010) for the relevant assessment years and on no other ground...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Kolkata

Exemption U/s. 10(23C)(iiiad) cannot be denied merely because assessee have objects other than education in its Trust Deed

ITO Vs Shri Balaji Prem Ashram & Nikhil Vidyalaya (ITAT Chandigarh) -

The undisputed facts of the case are that the assessee society does not possess registration under section 12A of the Act for relevant assessment year. From the perusal of return filed by it alongwith Form No.10B shows that it intended to claim exemption under section 11 of the Act...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Chandigarh