In this case Supreme Court recently clarified important questions regarding registration of charitable trusts under Section 12-AA of the Income Tax Act. In the event a charitable trust is applying for income-tax exemptions under Section 12-AA, India’s top court held that authorities must make certain its intended activities comply with its stated charitable objects. Trusts must meet a 3-pronged test, Supreme Court has clarified that simply registering under Section 12-AA doesn't automatically grant a trust exemption under Sections 10 and 11 of the Act. If it fails to provide convincing materials, authorities can refuse exemptions.