Section 12AA of Income-Tax Act, 1961 deals with Procedure for Registration of a Charitable Trust or institution
Income Tax : This analysis explains how Parliament designed Sections 11 to 13 to ensure that tax-free income is ultimately used for charitable ...
Income Tax : This guide explains when gifts received by individuals and HUFs become taxable under the Income-tax Act, including monetary, movab...
Income Tax : This analysis explains how charitable and religious trusts qualify for exemption under Sections 11 to 13 of the Income-tax Act. It...
Income Tax : The document highlights situations where exemptions under Sections 11 and 12 can be withdrawn, including benefits provided to inte...
Income Tax : Expanded grounds for cancellation now include legal non-compliance and incorrect disclosures. Trusts must treat accuracy and gover...
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 : The ITAT Delhi held that although failure to file Form 10B disentitled the assessee from claiming exemption under Sections 11 and ...
Income Tax : The ITAT Visakhapatnam held that the Commissioner cannot invoke Section 263 where the Assessing Officer has already conducted inqu...
Income Tax : The ITAT held that registration granted under Section 12AA before completion of assessment entitled the trust to claim exemption f...
Income Tax : The dispute concerned whether dividend received on capital reduction by a foreign subsidiary could trigger restrictions under Sect...
Income Tax : The Tribunal held that the special tax regime under Section 115BBE is confined to additions made under Sections 68 to 69D. Additio...
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 document highlights situations where exemptions under Sections 11 and 12 can be withdrawn, including benefits provided to interested persons, impermissible investments, and violations of charitable purpose conditions.
The ITAT held that registration under Sections 12AA/12AB cannot be cancelled when the trust continues to genuinely carry out its educational objects. Alleged fund diversion and related-party transactions must be examined during assessment and taxation proceedings instead.
The Bangalore Bench held that filing Form No. 10B along with the return is directory and not mandatory in circumstances where the audit report becomes available during appeal proceedings. Relief under Sections 11 and 12A was restored.
When an educational society was found to be substantially engaged in genuine charitable activities, its exemption could not be denied under Section 13(1)(b) simply because a few specific expenditures happened to benefit individuals from a particular religious community.
The Bangalore ITAT held that a genuine clerical mistake in Form 10 cannot deprive a charitable trust of exemption under Section 11(2) when the accumulation claim was properly disclosed elsewhere and corrected before assessment completion.
The Bangalore ITAT held that charitable trusts publishing and selling educational books do not lose Section 11 exemption merely because they earn surplus. Educational publishing activities were held distinct from commercial business activities.
The Chennai ITAT dismissed the Revenue’s appeal after finding that identical issues had already been decided in favour of the assessee in earlier assessment years. The Tribunal followed its previous ruling on software service payments.
ITAT Mumbai held that the Commissioner of Income Tax (Exemptions) cannot impose independent or contingent conditions while granting registration under Section 12AB. The Tribunal ruled that tax benefits could not be kept subject to the outcome of a proposed Supreme Court appeal.
ITAT Bangalore held that the Income Tax Act does not bar a trust from filing a fresh Section 80G application merely because an earlier rejection was not challenged. The Tribunal remanded the matter for fresh consideration after holding the “void-ab-initio” finding unsustainable.
The Calcutta High Court upheld rejection of exemption under Section 12AB after finding that proposed microfinance activities involved commercial features such as charging interest. The Court held that such activities may not qualify as charitable purposes.
