SAHAJANAND EDUCATION AND CHARITABLE TRUST,GANDHINAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 451/AHD/2025

AI Insights

The case involves Sahajanand Education And Charitable Trust appealing against the decisions of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied the Trust's applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act, 1961. The Trust's initial application was rejected due to an incorrect section code, and subsequent applications were rejected for want of prosecution and non-compliance with the conditions of a relevant CBDT Circular. The Tribunal dismissed the appeals, agreeing with the Commissioner's findings and noting that the Trust's applications did not fulfill the necessary conditions for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717619 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 27-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AASHISH RAJESH REWAR
• Assessee Lawyers: MEHUL THAKKAR
• Keywords: Set aside; Charitable institution
• Section: 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. Nos. 450&451/Ahd/2025 (Assessment Year: N.A.) Sahajanand Education And Charitable Trust, 30, Alkapuri Society, B/H. Ambikanagar 2 Highway, Ankit Vidhyalay Kalol, Gandhinagar, Gujarat-382721 Vs. Commissioner of Income Tax (Exemption), Ahmedabad [PAN No. AAQTS5279K] (Appellant) .. (Respondent) Appellant by : Shri Mehul Thakkar, A.R. Respondent by : Shri Aashish Rajesh Rewar, CIT-DR Date of Hearing 11.08.2025 Date of Pronouncement 12.08.2025 O R D E R PER ANNAPURNA GUPTA - AM: Both appeals relate to the same assessee and are against separate orders passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad (in short “Ld. CIT(E)”), dated 24.12.2024 denying grant of registration under Section 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and denying approval under Section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) dated 25.12.2024. We shall first deal with the appeal of the assessee against the denial of registration under Section 12AB of the Act in ITA No. 450/Ahd/2025 2. The assessee has raised the following grounds of appeal are as under: Printed from counselvise.com ITA Nos.450&451/Ahd/2025 Sahajanand Education And Charitable Trust vs. CIT(E) Asst.Year –N.A. - 2 - “1. That the Ld. CIT(E), Ahmedabad erred in law and on facts in rejecting the appellant’s application for registration under Section 12A of the Act, despite the appellant having duly complied with all requirements. 2. That the Ld. CIT(E) wrongly interpreted Para 4.1 of CBDT Circular No. 07/2024 and misapplied the same to reject the appellant’s application, despite the appellant fulfilling all eligibility conditions for registration under Section 12A of the Act. 3. That in any event, the rejection of the appellant’s application for registration under Section 12A is unjustified, arbitrary, and in violation of the provisions of the Act, and therefore, deserves to be set aside. 4. That the appellant craves leave to add, alter, amend, or withdraw any of the above grounds before or at the time of the hearing of the appeal.” 3. The orders of the authorities below reveal that the assessee’s application for registration of the Trust under sub-Clause (iii) of Clause (ac) of sub-Section (1) of Section 12A of the Act in Form 10AB was rejected as non-maintainable noting that the assessee had filed an application earlier in this regard which had been rejected vide order dated 17.08.2023 and the said order was not covered vide Para 4.1 of the CBDT Circular 7/2024 dated 25.04.2024. Para 4.1 of the CBDT Circular No. 7/2024 dated 25.04.2024 reads as under: “4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. 10AB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024.” 4. As per the said para where the initial application in Form 10AB was rejected by the Commissioners before the issuance of the Circular of 25.04.2024 for the reason that the application was furnished after the due date or the application was furnished under the wrong section code then a fresh application could be furnished within the extended time provided in paragraph 3.2 of the Circular i.e. by 30.06.2024. The Ld.CIT(E) noted that the rejection Printed from counselvise.com ITA Nos.450&451/Ahd/2025 Sahajanand Education And Charitable Trust vs. CIT(E) Asst.Year –N.A. - 3 - of the earlier application of the assessee was not covered by Para 4.1 of the Circular and therefore, the present application filed by the assessee within the extended date i.e. 30.06.2024 was held to be non-maintainable by him. 5. In the statement of facts filed before us, the assessee however has contended that the initial application filed by the assessee in Form No. 10AB was rejected for incorrect section code being mentioned and this order was passed on 18.02.2023, that thereafter another application under the correct section code was made but this again was rejected for want of prosecution vide order dated 17.08.2023. That the assessee was not aware about the passing of the second rejection order and became aware of it only when it’s third application, the impugned application before us, seeking registration was rejected mentioning the passing of the order dated 17.08.2023 not being for the reasons stated in Para 4.1 of the CBDT Circular No. 7/2024 and thus, holding the impugned application as non-maintainable. The contents of the statement of facts before us are reproduced herein below: “1. The appellant trust initially applied for registration under Section 12A of the Income Tax Act, 1961 (\"the Act\"); however, the application was rejected on the ground that it was filed under an incorrect section code, i.e., Section 12A(1)(ac)(iv). This rejection was conveyed vide order of the Learned Commissioner of Income Tax (Exemption) [\"Ld. CIT(E)\"] dated 18 February 2023. 2. Subsequently, the appellant submitted a fresh application under the correct section code. However, this application was rejected for want of prosecution vide order of the Ld. CIT(E) dated 17 August 2023. The appellant became aware of it when its third application for registration was denied. 3. The third application was duly filed with complete compliance to the notice issued by the office of the Ld. CIT(E), Ahmedabad. However, it was rejected on technical grounds, with the reason cited being that the application was not maintainable as it did not fulfill the conditions prescribed in Para 4.1 of CBDT's Circular No. 07/2024. Printed from counselvise.com ITA Nos.450&451/Ahd/2025 Sahajanand Education And Charitable Trust vs. CIT(E) Asst.Year –N.A. - 4 - 4. Aggrieved by the rejection of the application despite having met all statutory requirements, the appellant trust is filing this appeal before the Hon'ble Income Tax Appellate Tribunal (ITAT), Ahmedabad, seeking just and fair consideration.” 6. It is evident from the above that even the assessee does not dispute the findings of the Ld. CIT(E) that the rejection of the earlier application of the assessee vide order dated 17.08.2023 was not for the reason specified in Para 4.1 of CBDT Circular No. 7/2024. Therefore, there is no infirmity, we hold, in the order of Ld. CIT(E) rejecting the third application filed by the assessee within the extended time limit provided by the said CBDT Circular for not having fulfilling the conditions specified therein. The said fact was pointed out to the Ld. Counsel for the assessee who fairly agreed with the same and admitted that the rightful course of action was the filing of appeal against the second order passed dated 17.08.2023 rejecting assessee’s application for non- prosecution. The assessee is free to follow whatever remedy is provided in law for seeking registration under Section 12A of the Act. The authorities concerned may appreciate assesses reasons for delay in filing appeal, considering the background of facts pleaded before us in which the present application was filed. 7. The order passed by the Ld. CIT(E), therefore, in the present case rejecting assessee’s application for seeking registration under Section 12A of the Act is accordingly, upheld. 8. In the result, the appeal of the assessee is dismissed. ITA No. 451/Ahd/2025 9. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA Nos.450&451/Ahd/2025 Sahajanand Education And Charitable Trust vs. CIT(E) Asst.Year –N.A. - 5 - “1. The Ld. CIT-Exemption, Ahmedabad has erred in law in rejecting the application for registration of the trust u/s 80G(5)(iii) of the Income Tax Act on the ground that appellant does not have any valid order for registration u/s. 12A / 12AB of the Act either inform No.10AD or in Form No.10AC. 2. The appellant craves leave to add, alter or delete any ground either before or in the course of hearing of the appeal.” 10. The present appeal pertains to the rejection of assessee’s application seeking approval under Section 80G of the Act, which was rejected noting the denial of registration to the assessee under Section 12A of the Act, which registration is a necessary prerequisite for seeking approval under Section 80G of the Act. Since we have confirmed the order of the Ld. CIT(E) denying registration under Section 12A of the Act to the assessee in its appeal filed in ITA No.450/Ahd/25 above, the order passed denying approval under Section 80(5) of the Act is also upheld. 11. In effect, both the appeals of the assessee are dismissed. This Order pronounced in Open Court on 12/08/2025 Sd/- Sd/- (SUCHITRA KAMBLE) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 12/08/2025 TANMAY, Sr. PS TRUE COPY आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "