Section 12AA of Income-Tax Act, 1961 deals with Procedure for Registration of a Charitable Trust or institution
Income Tax : Expanded grounds for cancellation now include legal non-compliance and incorrect disclosures. Trusts must treat accuracy and gover...
Income Tax : Objects benefiting specific communities or allowing overseas application of funds invite rejection. The ruling focus is on deed la...
Income Tax : Understand the tax treatment of monetary, movable, and immovable gifts received by individuals and HUFs. Learn the ₹50,000 thres...
Income Tax : Understand the taxability, registration, and exemption provisions for charitable and religious trusts under Sections 11–13, incl...
Corporate Law : Learn the registration process for NGOs (Trust, Society, Section 8 Company) on the Social Stock Exchange (NSE/BSE), including elig...
Income Tax : Karnataka State Chartered Accountants Association made a representation on 31.10.2022 to Minister of Finance Smt. Nirmala Sitharam...
Income Tax : CAG noticed ineffective monitoring of accumulation of income and its utilization, ineffective monitoring of receipts and utilizati...
Income Tax : BCAS representation in regard to the conditions set out in various orders of registration granted to Charitable institutions in re...
Income Tax : CA Shailesh R Ghedia president of BJP Professional Cell, Mumbai has written a letter to Honorable Finance Minister, Smt. Nirmala S...
Income Tax : Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Incom...
Income Tax : ITAT Bangalore rules skill development qualifies as education, allowing Sec 11 exemption to charitable trust. Rejects commercial a...
Income Tax : The issue was whether utilisation of earlier accumulated income qualifies for fresh exemption. The Tribunal held it amounts to dou...
Income Tax : ITAT held that interest earned on bank deposits is taxable and not covered by the principle of mutuality. The ruling confirms that...
Income Tax : The ruling held that incomplete documentation or minor deficiencies cannot be sole grounds for denial of registration. It emphasiz...
Income Tax : ITAT held that vacant unsold flats attract tax on notional rent under house property. The key takeaway is that ownership triggers ...
Income Tax : PCIT or CIT can examine if there is any specified violation by the trust or institution registered or provisionally registered und...
Income Tax : CBDT issues Notification no. 19/2021 dated 26/03/2021 pertaining to procedure for registration of fund/ trust/charitable instituti...
Income Tax : CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be def...
Income Tax : These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019. 2. In rule 1 of the Bombay Public Trusts Rules,...
Income Tax : Thus, for a trust registered u/s 12AA of the Act to avail the benefit of exemption u/s 11 shall inter-alia file its return of inco...
The ITAT Chennai allowed a charitable trust to rectify its mistake of applying for provisional 80G registration, remanding the case for reconsideration under the correct clause for a five-year registration.
Chhattisgarh High Court dismissed Revenue’s appeal, ruling that an existing and operational registration under Section 12AA makes grant of Section 80G approval mandatory. The court held that once 12AA status is granted, further inquiry into application for 80G is unnecessary, citing Supreme Court precedent.
ITAT Jaipur held that denial of Section 11 exemption solely due to non-furnishing of the registration certificate under Section 12A is invalid where 80G approval exists, since 80G presupposes valid 12AA registration.
The ITAT Delhi affirmed the grant of Section 11 exemption to a charitable society, ruling that if the Assessing Officer fails to make a mandatory reference to the DVO to question a valuation, the registered valuer’s report must be accepted. Since the purchase price was lower than the valuer’s estimate, no benefit accrued to related persons.
The case addressed the disallowance of Rs.1.89 Cr, which the AO treated as a donation to other trusts and deemed income under S 11(3). The ITAT deleted the addition, ruling that payments made to other NGOs for executing charitable projects under the Trust’s supervision and control constitute genuine application of income, not donation.
The Income Tax Appellate Tribunal (ITAT), Dehradun, quashed the retrospective cancellation of the charitable trust registration (Sec 12A/12AB) of Sushila Devi Centre. The Tribunal held that the PCIT (Central), Kanpur, acted without jurisdiction, asserting that only the CBDT-notified CIT (Exemption) possessed the authority to cancel such registrations under section 120.
Summary of the Bombay High Court judgment where a charitable trust’s oversight in e-verifying its Form 10B was considered a human error and the delay was condoned, securing its Section 11 income tax exemption for A.Y. 2017-18.
ITAT Delhi held that a Local Authority providing general public utility services is not required to maintain books under Section 44AA. The penalty under Section 271A for non-maintenance of books was deleted.
Charitable Trust Registration Rejected on Technicality? ITAT Agra rules CIT(E) must allow rectification for wrong clause application (12A) and restore for fresh merit-based review and hearing.
Upholding the CIT(A)’s decision, the ITAT confirmed that the charitable trusts claim for exemption on ₹2.45 crore application of income could not be denied. The ruling establishes that the registration granted under Section 12AA, even if initially delayed, holds legal force for the current assessment year, nullifying the AOs attempt to tax voluntary contributions.
