Section 12AA - Page 14

Exemption to Charitable institution cannot be denied on the basis of a hypothetical assumption of an event that will happen in future

Additional Commissioner of Income-tax Vs N.L. Education Society (ITAT Agra)

The whole case revolves upon the lease deed dated 24.12.2004 executed between the lessor, Smt. Sudha Saraswat and the assessee-society through which the land measuring 5150.48 sq. meter was let out to assessee society for 30 years. Copy of the lease deed is appended with the assessment order. The assessee paid Rs. 10,000/- as premium and ...

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Once CIT grants registration u/s 12AA,He can not cancel the same if activities are in accordance with objects

CIT Vs Sarvodaya Ilakkiya Pannai (Madras High Court)

Under section 12AA, the Commissioner is empowered to grant or refuse the registration and after granting registration, would be empowered to cancel and that too, only on two conditions laid down under section 12AA(3) of the Act. Whether the income derived from such transaction would be assessed for tax and also whether the trust would be ...

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Benefits granted to a charitable institution cannot be extended to its substantially amended objects

The Board of Control for Cricket in India, Vs Income Tax Officer (ITAT Mumbai)

Registration granted under section 12A, on 12th February 1996, and the benefits flowing therefrom, cannot be extended to the amended objects of the society unless the DIT examines the same and comes to a conclusion that the registration under section 12A, can be extended to the revised objects, memorandum and by-laws. It would be illogica...

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Registration of institution u/s 12AA cannot be cancelled if its receipts from trade, commerce, etc., exceeds Rs.10Lakhs/Rs.25 Lakhs limit u/s 2(15)

Rajasthan Housing Board Vs The CIT (ITAT Jaipur)

If in any year, the gross receipts of the Institution exceeds Rs. 10 lakhs or Rs. 25 lakhs, as the case may be, then in that year, the Assessing Officer is empowered to examine the allowability of exemption u/s 11 but the same has no effect on granting the registration u/s 12AA of the Act....

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Holding of classes not mandatory to qualify as educational institution

Council for The Indian School Certificate Examinations Vs Director General of Income Tax (Delhi High Court)

Assessee has filed writ petition against order passed by the Director General of Income Tax (Exemptions), for denying them exemption under Section 10(23C)(vi) of the Income Tax Act, 196, on the ground that the aforesaid institute was not directly imparting education and had not employed teachers who were teaching or giving lectures to the...

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S. 12AA CIT can cancel registration even after grant – High profit Ratio cannot be ground for rejection

Shanti Devi Educational Trust Vs. CIT (ITAT Delhi)

according to the provisions of sub-section (3) to Section 12AA, even after grant of registration, if the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, he is empowered to pass an order in writing canceling t...

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CIT vs. Surya Educational & Charitable Trust (P&H High Court)

Commissioner of Income-tax Vs Surya Educational & Charitable Trust (Punjab and Haryana High Court)

CIT Vs. Surya Educational & Charitable Trust (P&H HC) - Section 10(23C) of the Act are the provisions of the Act in substitution of the earlier provisions of Section 10(22) of the Act as to which income shall not be included in computing the total income of any person. Therefore, the provisions of Sections 11, 12 or Section 10(23C) of th...

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While processing application u/s. 12AA of the Act Commissioner should not act as an Assessing Authority

The Commissioner of Income Tax Vs M/s Baba Deep Singh Educational Society (Punjab & Haryana High Court)

CIT Versus Baba Deep Singh Educational Society (P & H High Court)- Jurisdiction of the Commissioner at the stage of processing application under Section 12AA of the Act is limited regarding whether the activities are genuine and in consonance with the objects of the trust or institution and where education is being imparted as per the r...

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While granting registration u/s 12AA Commissioner not expected to see other provisions of the Income Tax Act, 1961

Maharashtra Academy of Engineering and Educational Research Vs. CIT (ITAT Pune)

n the recent past the question of interpretation of newly inserted section 12AA( with effect from 01/04/1997) has always been perennial teaser not only to the trust or institutions but also to the Revenue Department as also faced by the judiciary. To get the answer we have heard both the sides at length, carefully perused the impugned ord...

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Income Tax provisions related to Charitable Trust

Income derived from property held under trust or of an institution (‘trust’) wholly for charitable/religious purpose is exempt, if 85% of the income is spent on the objects of the trust, during the year. If the amount spent is less than 85% of the income, the shortfall is taxable, unless the trust has complied with the conditions ment...

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