Supreme Court to Re-examine Income Tax S.12AA Registration Mandate for Section 80G Benefits [Read Judgement]
The High Court had dismissed an appeal and upheld the view that once a trust is recognized as charitable under Section 12AA, it is entitled to 80G benefits.
![Supreme Court to Re-examine Income Tax S.12AA Registration Mandate for Section 80G Benefits [Read Judgement]](https://images.taxscan.in/h-upload/2025/11/07/2102980-supreme-court-re-examine-income-tax-taxscan.webp "Supreme Court to Re-examine Income Tax S.12AA Registration Mandate for Section 80G Benefits [Read Judgement]")
The Supreme Court of India has agreed to re-examine the question of whether registration under Section 12AA of the Income Tax Act, 1961, automatically qualifies a charitable trust for tax benefits under Section 80G of the Income Tax Act.
The matter arose from a judgment of the Chhattisgarh High Court, which had held that a valid registration under Section 12AA was sufficient to grant approval under Section 80G of the Income Tax Act.
In the case titled Commissioner of Income Tax (Exemption), Bhopal v. Sadhumargi Shantkranti Jain, the Revenue had challenged the High Court’s decision, arguing that Section 80G approval cannot be granted merely on the strength of a 12AA registration. The High Court, however, dismissed the appeal and upheld the view that once a trust is recognized as charitable under Section 12AA, it is entitled to 80G benefits.
Appearing for the Revenue, Additional Solicitor General Mr. Raghavendra P. Shankar, assisted by Ms. Madhulika Upadhyay and others, contended before the Bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan that the High Court had erred in equating the two provisions.
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He submitted that although the respondent-trust held a 12AA certificate, such registration alone does not automatically entitle it to 80G approval. The assessing authority, he argued, is required to verify the nature of the activities and determine whether they are genuinely charitable or predominantly religious in character.
The ASG pointed out that, in the present case, the activities for which the trust sought 80G approval were religious in nature and thus did not qualify as charitable under the Income Tax Act. After hearing the submissions, the Supreme Court condoned the delay in filing the Special Leave Petition and issued notice to the respondent trust, returnable in four weeks.
The matter assumes significance as it could clarify the interplay between Sections 12AA and 80G, both central to the tax-exemption framework for charitable and religious institutions.
While Section 12AA deals with registration of trusts or institutions for recognition as charitable entities, Section 80G governs the grant of tax deductions to donors contributing to such entities.
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