Section 12AA

Concept of NGO and Income Tax Provisions

Income Tax - Trust, Society and Section 8 Company can seek registration u/s 12A to claim exemption under provisions of Income Tax Act’1961, if certain conditions are satisfied. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust....

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Key Points for Registration of Trust / Society u/s 12AA of I T Act, 1961

Income Tax - The following points have to be observed in connection with Registration of Eligible Entity under Section 12AA of the Income Tax Act, 1961: (01) The due reasonable opportunity of being heard properly has to be provided to the applicant as per Subsection (1) of Section 12AA of the Income Tax Act, 1961. ...

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Exit tax where charitable institution converts into non-charitable

Income Tax - 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...

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Common errors in taxation of charitable and religious organization

Income Tax - 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 ...

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3 Important Income Tax Case laws on Charitable or Religious Trusts and Institutions

Income Tax - 1. Whether the Tribunal was right in negating the assessee’s claim for accumulation of unspent income? 2. Whether repayment of borrowed funds utilised for construction of commercial complex augmenting income of trust and amounts to application of income for charitable purpose eligible for exemption under section 11? ...

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Budget 2010-11: Power of Commissioner to Cancel registration obtained by trust under section 12A

Income Tax - Section 12AA provides the procedure relating to registration of a trust or institution engaged in charitable activities. Section 12AA(3) currently provides that if the activities of the trust or institution are found to be non-genuine or its activities are not in accordance with the objects for which such trust or institution was establis...

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Registration under FCRA cannot be denied to society on mere bald report on use of Foreign Contribution

DR R N Gupta Technical Education Society Vs Union of India (Delhi High Court) - The petitioner - a Society registered under the Societies Registration Act, 1860 - has filed the present petition impugning communications dated 01.08.2014 and 07.12.2015 (hereafter referred to as the impugned communications)...

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Merely charging of fees does not make an educational institute non charitable

Jaycees Public School Vs. ITO (ITAT Delhi) - Jaycees Public School Vs. ITO (ITAT Delhi) We do not find that assessee is not engaged in the educational activities as merely charging of the fees does not make it existing for the purposes of the profit. ...

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Hyderabad Cricket Association allowed to claim exemption u/s. 11

Hyderabad Cricket Association Vs. Jt. Director of Income Tax (ITAT Hyderabad) - Hyderabad Cricket Association is not engaged in activities in nature of trade and commerce or business and therefore, eligible to enjoy the benefit of section 11 of the Income Tax Act, 1961, the Income Tax Appellate Tribunal, Hyderabad bench said last week while disposing appeals filed by both HCA a...

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Giving awards, felicitating eminent people and organizing public debates is not charitable activity

Sri Chukkapalli Pitchaiah Foundation Vs. CIT(Exemptions) (ITAT Visakhapatnam) - Denying 12AA registration to a Trust, ITAT held that activity of organizing meetings and giving awards to eminent people do not fit into the definition of charitable purpose under Income Tax Act, 1961....

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No S. 12AA Registration cancellation for non-start of charitable or religious activity

CIT vs. Shreedhar Sewa Trust (Allahabad High Court) - Registration U/s. 12AA cannot be cancelled on the ground that trust has not yet commenced charitable or religious activity- CIT vs. Shreedhar Sewa Trust (Allahabad High Court)...

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No mandatory Trust registration cancellation u/s 12AA for Turnover

Circular No. 21/2016-Income TAx - (27/05/2016) - It is clarified that it shall not be mandatory to cancel the registration already granted u/s 12AA to a charitable institution merely on the ground that the cut-off specified in the proviso to section 2(15) of the Act is exceeded in a particular year without there being any change in the nature of a...

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CBDT to CIT(E)- Pass order U/s. 12AA within prescribed time or face action

Instruction No. 16/2015 - (06/11/2015) - Instruction No. 16/2015 Sub-section (2) of Section 12AA of the Income-tax Act 1961 prescribes that every order granting or refusing registration under clause (b) of sub-section (I) of that Section shall be passed before the expiry of six months from the end of the month in which the application was ...

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Section 12AA’s Popular Posts

Recent Posts in "Section 12AA"

Registration under FCRA cannot be denied to society on mere bald report on use of Foreign Contribution

DR R N Gupta Technical Education Society Vs Union of India (Delhi High Court)

The petitioner - a Society registered under the Societies Registration Act, 1860 - has filed the present petition impugning communications dated 01.08.2014 and 07.12.2015 (hereafter referred to as the impugned communications)...

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Merely charging of fees does not make an educational institute non charitable

Jaycees Public School Vs. ITO (ITAT Delhi)

Jaycees Public School Vs. ITO (ITAT Delhi) We do not find that assessee is not engaged in the educational activities as merely charging of the fees does not make it existing for the purposes of the profit. ...

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Hyderabad Cricket Association allowed to claim exemption u/s. 11

Hyderabad Cricket Association Vs. Jt. Director of Income Tax (ITAT Hyderabad)

Hyderabad Cricket Association is not engaged in activities in nature of trade and commerce or business and therefore, eligible to enjoy the benefit of section 11 of the Income Tax Act, 1961, the Income Tax Appellate Tribunal, Hyderabad bench said last week while disposing appeals filed by both HCA and the department....

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Giving awards, felicitating eminent people and organizing public debates is not charitable activity

Sri Chukkapalli Pitchaiah Foundation Vs. CIT(Exemptions) (ITAT Visakhapatnam)

Denying 12AA registration to a Trust, ITAT held that activity of organizing meetings and giving awards to eminent people do not fit into the definition of charitable purpose under Income Tax Act, 1961....

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No S. 12AA Registration cancellation for non-start of charitable or religious activity

CIT vs. Shreedhar Sewa Trust (Allahabad High Court)

Registration U/s. 12AA cannot be cancelled on the ground that trust has not yet commenced charitable or religious activity- CIT vs. Shreedhar Sewa Trust (Allahabad High Court)...

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Surplus generation from charitable activities did not dis-entitle assessee from registration U/s. 12A

Yashaswi Education Society Vs CIT (ITAT Pune)

This appeal by the assessee is directed against the order of Commissioner of Income Tax -I, Pune dated 29-11-2013 rejecting the application of the assessee for grant of registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as the Act)....

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At registration stage of a charitable trust u/s 12AA CIT not required to look its activities

CIT vs. Shreedhar Sewa Trust (Allahabad High Court)

This appeal under Section 260­A of Income Tax Act, 1961 (hereinafter referred to as the Act, 1961) has arisen from judgment and order dated 12.04.2017 passed by Income Tax Appellate Tribunal, Lucknow Bench A, Lucknow (hereinafter referred to as the Tribunal) in ITA No. 492/LKW/2016....

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Deemed Registration U/s. 12AA if not granted or refused by CIT within 6 Months

CIT Vs Sahitya Sadawart Samiti (Rajasthan High Court)

1. Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal has not acted illegally and perversely in making observations with regard to grant of exemption under sec­tion 10(23C)(vi) when the Income Tax Appellate Tribunal has no jurisdiction to decide any application/appeal arising out of order passed either ...

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Registration U/s. 12AA cannot be denied for mere non filing of Return

CIT (Exemptions) Vs. M/s Shri Shirdi Sai Darbar Charitable Trust (Dharamshala) (Punjab & Haryana High Court)

Advocate Akhilesh Kumar Sah Just because the assessee has not filed income tax returns in earlier years, it can not be said that the activities of the assessee of the charitable trust / society were not genuine and grant of the registration under section 12AA cannot be denied...

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Trust Corpus Fund cannot be taxed despite non registration u/s 12AA

Divine Educational Institute and Social Development Society Vs. ITO (ITAT Delhi)

Corpus fund which is meant for specific purpose to meet out capital expenditure could not be part of annual receipts of educational institution, even if no registration u/s 12AA have been granted....

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