#Section 12A

The tribunal held that where the sole financial creditor is paid in full and the operational creditor accepts enhanced settlement, leaving only CIRP costs unresolved, withdrawal under Section 12A is permissible despite procedural non-compliance with Regulation 30A. The ruling prioritizes commercial resolution over technical defaults, allowing corporate debtors to exit insolvency once all substantive claims are satisfied.

NCLAT quashed the liquidation order of Jeppiaar Cements, revived the corporate insolvency resolution process and permitted withdrawal of the Sec 12A application even though the Committee of Creditors failed to meet the 66 % voting threshold prescribed by Sec 33. The ruling affirms a resolution professional’s discretion to deem a Sec 12A withdrawal viable, protecting creditor interests and keeping restructuring options open for the debtor.

Delhi High Court ruled that a plaintiff can obtain a Section 12A exemption when a continuing IP infringement case demands urgent interim relief, permitting the court to order release of title deeds against cash security. This clarifies that mediation waiver is available for time-sensitive IP disputes, affecting commercial litigants seeking swift injunctive relief.

The Delhi ITAT ruled that a charitable trust’s failure to register its deed does not invalidate its claim to Section 12A tax exemption. This clarifies that registration is not a statutory prerequisite, benefiting existing and prospective charitable trusts seeking exemption.

ITAT Delhi rules sale of milk by a gaushala trust is incidental to its charitable purpose under Section 2(15) proviso, affirming Section 12A registration. The ruling clarifies that receipts from milk sales do not disqualify trusts from tax exemptions if aligned with primary charitable objectives.

The ITAT Agra bench ruled that technical non-compliance with Form 10AB filing deadlines cannot justify summary rejection of charitable trust registration when the entity’s core charitable purpose is clear and undisputed. This reinforces that natural justice and substantive fairness must prevail over rigid procedural defaults in tax exemption matters.

The ITAT Delhi has ruled that an educational institution qualifies for tax exemption under Section 12A(1)(ac)(ii) even without formal affiliation to a university or board, provided its objects and activities are exclusively educational and non-profit. This clarifies a critical ambiguity for small schools, nurseries, and alternative education trusts seeking tax status without institutional ties, reinforcing that substance overrides formality under the Income-tax Act.

Sikkim High Court clarifies that mandatory pre-institution mediation under Section 12A of the Commercial Courts Act does not apply to suits filed before the 20.08.2022 amendment, shielding litigants from procedural dismissals. The ruling ensures legal certainty for pending commercial disputes and reinforces the non-retrospective application of procedural amendments.

The ITAT Delhi has ruled that denying a charitable institution the opportunity to respond to a tax exemption questionnaire because notices were sent to an incorrect email address violates the fundamental principle of natural justice. This sets a critical precedent: government authorities must use officially registered contact details when issuing procedural notices, ensuring fair hearing rights in tax exemption proceedings under Sections 12A and 80G of the Income Tax Act.

The ITAT Delhi condoned a 706-day delay in filing an appeal against rejection of Section 12A registration for a charitable society, holding that lack of legal guidance constitutes sufficient cause and denying a hearing violated natural justice. This sets a critical precedent for charitable trusts facing bureaucratic delays in tax exemption processes, reinforcing that procedural fairness trumps technical non-compliance.

The NCLAT has ruled that when the Committee of Creditors approves a full settlement, any pending appeal under Section 7 IBC becomes infructuous and must be disposed of, as the statutory pathway for withdrawal under Section 12A now governs the outcome. This reinforces that procedural efficiency trumps appellate redundancy when resolution is secured, benefiting corporate debtors in essential services like healthcare.

ITAT Ahmedabad ruled that rejection of tax exemption registration under Sections 12A/12AB and 80G without granting the trust a fair hearing violates principles of natural justice. The tribunal set aside the order, emphasizing procedural fairness and the interdependency of these provisions for charitable trusts seeking tax benefits.

Calcutta High Court rules that inadvertent filing of Form 10BB instead of Form 10B does not defeat Section 12A exemption for charitable trusts, emphasizing substance over procedural technicalities. The authority is directed to decide the pending condonation application within one month, reinforcing CBDT's circular on condonation of delays.

ITAT Delhi rules that the absence of an irrevocable clause in a trust deed at the time of Form 10AB application justifies rejection of registration under Section 12A, but permits fresh consideration if the deed is amended post-application. The ruling underscores strict compliance with procedural requirements for charitable trust registrations, impacting trusts seeking tax exemptions.

The ITAT Delhi has ruled that denying an applicant an opportunity to be heard before rejecting their Section 12A registration application violates natural justice, regardless of the adequacy of submitted documents. This sets a critical precedent for all charitable entities seeking tax exemption, mandating procedural fairness even when substantive claims appear weak.