MEVAD VAGAD RAJPUT SEVA SANSTHA,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 20/AHD/2026

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The case involves Mevad Vagad Rajpur Seva Sanstha, a trust, which appealed against the rejection of its applications for final/regular registration under sections 12A and 80G of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Ahmedabad. The trust had initially been granted provisional registration but mistakenly applied for final registration under the wrong sub-clause of Section 12A. The Tribunal found that this was a clerical error and directed the CIT(E) to rectify the mistake and consider the application for registration under the correct provisions.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838012 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 05-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. P. RASTOGI
• Assessee Lawyers: DHAVAL PADIYA
• Keywords: Charitable institution
• Section: 12A; 80G

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “बी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं अ पूणा\u001a गु!ा, लेखा सद\u001b क े सम%। ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA Nos. 20/Ahd/2026 & 21/Ahd/2026 िनधा \u000fरण वष\u000f /Assessment Year : N.A. Mevad Vagad Rajpur Seva Sanstha 96-1143, Shreenagar Apartment Sola Road Ahmedabad – 380 013 बनाम / v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAIM 1712 F (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Dhaval Padiya, CA Revenue by : Shri R.P. Rastogi, CIT-DR सुनवाई की तारीख/Date of Hearing : 09/02/2026 घोषणा की तारीख /Date of Pronouncement: 18/02/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present two appeals have been preferred by the assessee-trust against the separate orders of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’], dated 01/12/2025 & 01/12/2025, assailing the rejection of its applications moved for final/regular registration u/s.12A and 80G of the Income Tax Act, 1961 (for short “the Act”) respectively. First, we take up assessee’s appeal in ITA No.20/Ahd/2026 as the lead case for the purpose of narration of facts. Printed from counselvise.com ITA Nos.20 & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E) 2 ITA No.20/Ahd/2026 2. The assessee was granted provisional registration u/s 12A of the Act under sub-clause (vi) of clause (ac) of sub-section (1) of Section 12A of the Act on 23/12/2022 upto AY 2025-26, i.e. upto 31/03/2025. The assessee was supposed to apply for final/regular registration under sub-clause (iii) of clause (ac) of sub-section (1) of Section 12A of the Act, within six months of commencement of its activities or atleast six months prior to expiry of the period of provisional registration, whichever is earlier. The assessee applied for final/regular registration on 15/04/2025, however, committed a mistake in mentioning the correct section. The assessee mentioned u/s. 12A(1)(ac)(ii) of the Act instead of mentioning u/s.12A(1)(ac)(iii) of the Act. 3. The Ld. CIT(E) dismissed the application of the assessee observing that, firstly, the same was filed under the wrong provision and, secondly, being time-barred as the assessee-trust was supposed to apply for final/regular registration as per the provisions of section 12A(1)(ac)(iii) of the Act, i.e. within six months of the commencement of its activities or before expiry of six months of its provisional registration, whichever is earlier. The Ld. CIT(E), while dismissing the said application with observing next due and has given the liberty to the assessee to file the application mentioning the correct provisions/clause and also to move an application for condonation of delay. 4. We note that there remained a lot of confusion about the interpretation of the relevant provisions regarding the registration u/s 12A and approval Printed from counselvise.com ITA Nos.20 & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E) 3 u/s.80 of the Act of the charitable organisations. Even the CBDT has to issue circulars/clarifications time and again and even the time-limit for applying for provisional/regular registration has been extended from time to time by the CBDT. In this case, though the assessee was supposed to apply under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act, however, it mistakenly applied under sub-clause (ii) of clause (ac) of sub- section (1) of section 12A of the Act. However, all the facts were before the Ld. CIT(E) and the Ld. CIT(E) was very well aware that the assessee was originally granted provisional registration under sub-clause (iv) of clause (ac) of sub-section (1) of section 12A of the Act and the assessee, in fact, had sought regular registration under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. The Ld.CIT(E), under the circumstances, was supposed to treat the said application under the relevant clause (iii) and proceed accordingly as it was just a clerical mistake while picking up the relevant clause at the time of submission of the online application Form 10AB. We accordingly, direct the Ld. CIT(E) to treat the application of the assessee under the relevant sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. 5. The Ld. Counsel for the assessee has submitted that assessee-trust has been doing its charitable activities and that the delay in filing the application for regular registration has occurred due to oversight and due to the confusion in interpretation of the relevant provisions. As observed above, that the confusion regarding interpretation of relevant provisions has not only been among the charitable organisations, income-tax practitioners but also among the Income-tax authorities and, therefore, under the circumstances, in our view, the delay in filing the present application before Printed from counselvise.com ITA Nos.20 & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E) 4 the Ld. CIT(E) for regular registration should be condoned. We order accordingly. 6. In view of our above discussion, the Ld. CIT(E) is directed to treat the application filed by the assessee under relevant provisions as applicable to the assessee for seeking final/regular approval after the grant of provisional approval, the delay in filing the said application, if any, before the Ld. CIT(E) is hereby condoned and the Ld. CIT(E) is directed to consider the application of the assessee on merits and grant the registration if so otherwise admissible to the assessee-trust. 7. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. ITA No.21/Ahd/2026 8. The facts and issue involved in the present appeal are also identical except that the present case is relating to the non-grant of approval u/s 80G(5) of the Act. 9. Our observation made above, will mutatis mutandis apply to this appeal also and the ld. CIT(E) is, accordingly, directed to treat the application of the assessee under the relevant provisions as applicable to the assessee-trust and decide the application of the assessee on merits irrespective of any delay in filing such application before him, as the same stood condoned by this Tribunal. Printed from counselvise.com ITA Nos.20 & 21/Ahd/2026 Mevad Vayad Rajpur Seva Sanstha vs. CIT(E) 5 10. in the result, both the appeals of the assessee-trust are treated as allowed for statistical purposes. Order pronounced in the Open Court on 18 /02/2026. Sd/- Sd/- (Annapurna Gupta ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 18/02/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(E)- Ahmedabad-380 015 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with file) : 09.2.2026 2. Date on which the typed draft is placed before the Dictating Member. : 09.2.2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 18.2.26 7. Date on which the file goes to the Bench Clerk. : 18.2.26 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "