GAYATRI PARIVAR SHODASH SANSKAR KENDRA GOTRI,VADODARA V. CIT (EXEMPTION), AHEMDABAD

ITA 666/AHD/2025

AI Insights

The case involves Gayatri Parivar Shodash Sanskar Kendra, a trust engaged in charitable activities, which appealed against the denial of approval for registration under section 12A of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Ahmedabad. The initial rejection was based on the trust not meeting the conditions for registration as per the cited section. The trust argued that there was an inadvertent error in selecting the section code in their application, which led to the rejection. The Tribunal found merit in the trust's argument and set aside the matter for re-examination by the CIT(E).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707210 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 29-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: KUNAL RATHOD
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 11; 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri TR Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Gayatri Parivar Shodash Sanskar Kendra Gotri D 101 The Valencia, B/H Priya Cinema Sevasi Gujarat - 391101 PAN: AADTG6466B (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri Kunal Rathod, A.R. Revenue by: Shri Alpesh Parmar, CIT-D.R. Date of hearing : 09-07-2025 Date of pronouncement : 10-07-2025 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER This appeal is filed by the assessee against the denial of approval u/s. 12A(1)(ac)(vi)(B) of the Income Tax, 1961 vide order dated 02/12/2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad [in short the CIT(E)]. 2. There was delay of 29 days in filing this appeal. The assessee had filed a condonation application along with an affidavit explaining the reason for delay. It is stated that the consultant was hospitalized for medical treatment which led to delay in filing this ITA No. 666/Ahd/2025 Assessment Year : NA I.T.A No. 666/Ahd/2025 A.Y. NA Gayatri Parivar Sodash Sanskar Kendra.. vs. CIT (Exemption) 2 appeal. A medical certificate in this respect has also been filed. Considering the explanation of the assessee, the delay in filing the appeal is condoned. 3. The following grounds have been taken in this appeal: - “On the facts in the circumstances of your appellant case and in law, the rejection of application u/s 12(A) by CIT(EXEMPTION) АНEMDABAD is bad in law, therefore we have objections against your observations for violating the existing provision:- The existing provision of section 12AB(1)(b) states that the assessing satisfying himself about genuineness of activities of trust and the actual activities conducted are material for the purpose of achieving its objects. \"Genuineness of activities\" refers to the Income Tax Department's (ITD) requirement to ensure that the trust's or institution's activities are truly charitable and not merely a facade for tax evasion. There is no intention of trust to evade the tax. The objection shown in our trust deed are purely of CHARITABLE NATURE ONLY. Specifically the objects are:- 1. Carrying out human welfare activities. 2. Imparting yoga training through well-structured yoga camps and providing ayurvedic treatment to cure various diseases by performing spiritual rituals. Further, the actual activities conducted by trust are purely for achieving the charitable purposes inclusive religious activities. On verification of the audited statements, it seems that the actual expenses incurred are for imparting yoga training through well-structured yoga camps and providing ayurvedic treatment to cure various diseases by performing spiritual rituals. From the above stated para, it clearly states that trust has no intention of tax evasion. Therefore, we request you to consider our application for registration u/s 12A. Your appellant graves leave to add to amend or to modify the ground in above raised.” 4. Shri Kunal Rathod, the ld. counsel for the assessee submitted that the ld. CIT(E) had rejected the application filed by the assessee for the reason that the assessee Trust was not found eligible for registration under section 12A(1)(ac)(vi)-ITEM(B) of the Act. The Ld. AR explained that the trust was registered on 12th March, 2020 and a provisional approval u/s 12A was received on 10th march, 2022 for the period AY 2022-23 to AY 2024-25. Accordingly return of income was filed claiming exemption u/s 11 of the Act. On expiry I.T.A No. 666/Ahd/2025 A.Y. NA Gayatri Parivar Sodash Sanskar Kendra.. vs. CIT (Exemption) 3 of the provisional certificate the Trust had made fresh application for registration on 29th June, 2024. The Ld. AR submitted that while filing the application in Form 10AB, there was an inadvertent error as incorrect section code - item (B) of sub clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act was selected in place of the correct code, which was sub clause (iii) of clause (ac) of sub- section (1) of section 12A of the Act. The Ld. AR submitted that the assessee is engaged in charitable activities and it may be allowed an opportunity to rectify the mistake in the application and the matter may be set aside to the file of Ld. CIT(E) with a direction to re-adjudicate the issue. 5. Per contra, Shri Alpesh Parmar, the ld. CIT-D.R. submitted that the Ld. CIT(E) had rightly rejected the application as filed by the assessee. 6. We have considered the submission of the assessee and perused the materials placed before us. The Ld. CIT(E) had rightly rejected the application filed by the assessee Trust u/s 12A(1)(ac)(vi) of the Act as non-maintainable for the reason that the conditions for such approval was not found satisfied. In fact, the Ld. CIT(E) had made certain queries in the course of the proceeding before him, which was responded by the assessee. However, the fact that there was a mistake in the application of the assessee was not brought to the notice of the Ld. CIT(E). The assessee has now submitted that there was a mistake in the application in quoting the section code under which the approval was sought. According to the assessee, the section code “Item (B) of sub-section (vi) of clause (ac) of sub-section (1) of section 12A” was I.T.A No. 666/Ahd/2025 A.Y. NA Gayatri Parivar Sodash Sanskar Kendra.. vs. CIT (Exemption) 4 wrongly quoted in the application in place of correct section code “sub-section (iii) of clause (ac) of sub-section (1) of section 12A” of the Act. A copy of order dated 03.10.2022 of the provisional registration allowed to the assessee has been brought on record. It is found there from that the assessee was allowed provisional registration under sub-section (vi) of clause (ac) of sub-section (1) of section 12A for the AY 2022-23 to AY 2024-25. When the provisional registration was allowed under sub-section (vi) of clause (ac) of sub-section (1) of section 12A of the Act, the assessee had rightly applied for regular registration under this provision only. The mistake on the part of the assessee, if any, had occurred in the application for provisional registration and not in the application for regular registration. 7. The contention of the assessee is that there was a mistake in wrong selection of section code in the application. We don’t find any such mistake in the regular registration application. Rather, the mistake was made at the time of filing the application for provisional registration. The moot issue to be considered here is, if the provisional registration was allowed under one sub- clause, whether the assessee could have made application for final registration under different sub-clause. For this purpose, we deem it proper to set aside the matter to the file of Ld. CIT(E) with a direction to first examine this issue and thereafter allow an opportunity to the assessee to rectify the application, if permissible as per the provisions of law. The assessee may also be allowed a proper opportunity of being heard I.T.A No. 666/Ahd/2025 A.Y. NA Gayatri Parivar Sodash Sanskar Kendra.. vs. CIT (Exemption) 5 in the matter. The assessee will also be free to make a fresh application under the correct provisions of the Act, if it so desires. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. This order is pronounced in the Open Court on 10/07/2025. Sd/- Sd/- (TR SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 10/07/2025 TRUE COPY आदेश की Ůितिलिप अŤेिषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद Strengthened preparation & delivery of orders in the ITAT 1) Date of dictation Dictaphone 2) Date on which the typed draft is placed before the Dictating Member & Other Member 3) Date on which the approved draft comes to the Sr. P.S./P.S. /07/2025 4) Date on which the fair order is placed before the Dictating Member for pronouncement 10/07/2025 5) Date on which the fair order comes back to the Sr. P.S./P.S. 10/07/2025 6) Date on which the file goes to the Bench Clerk 10/07/2025 7) Date on which the file goes the Head Clerk 8) Date on which the file goes to the Assistant Registrar for signature on the order 9) Date of Dispatch of the order "