SAHAY FOUNDATION,GANDHINAGAR V. THE CIT (EXEMPTION), AHMEDABAD

ITA 369/AHD/2025

AI Insights

The case involves Sahay Foundation, a trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, who had rejected their application for registration under section 12A(1)(ac)(ii) of the Income Tax Act, 1961, as non-maintainable without merit consideration. The Tribunal found that the application should have been filed under section 12A(1)(ac)(iii) instead. Acknowledging the procedural error, the Tribunal directed the Commissioner to reconsider the application under the correct provisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314243 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: Prerna P Mandal Vs. CIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: MEHUL K PATEL
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.369/Ahd/2025 (Assessment Year: N.A) Sahay Foundation, Office No.702, 7th Floor, Skyline Complex, Sector-11, Gandhinagar-382010. [PAN :ABHTS0530 K] Vs. The Commissioner of Income Tax(Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri Alpesh Parmar, CIT. DR Date of Hearing 05.05.2025 Date of Pronouncement 06.05.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 17.09.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, relating to the Assessment Year N.A. 2. The assessee has raised the following grounds of appeals: (1) That on facts, and in law, the learned CIT (Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable ITA No. 365/Ahd/2025 Prerna P Mandal Vs. CIT Asst. Year : N.A - 2– opportunity to the appellant and in rejecting the application u/s 12A (1). (2) That on facts, and in law, the learned CIT (Exemptions), Ahmedabad has grievously erred in rejecting the application as non maintainable by holding that it has no power to treat the application under the correct provisions of section 12A(1) (ac) (iii) instead of mistaken application filed u/s 12A (1) (ac) (ii) of the Act. (3) That on facts, and in law, learned CIT (Exemption) be directed to consider the application under the correct provisions of section 12A (1) (ac) (iii) decide on merits. of the Act, and (4) The appellant craves leave to add, alter, amend any ground of appeal. 3. The facts of the case are that the assessee is a Trust and had applied for registration under Form No.10AB of the Act. However, Ld. CIT(E) rejected the application u/s.12A(1)(ac)(ii) of the Act, as non- maintainable, without going into the merits. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, we find that assessee-trust was supposed to file an application under sub-clause (iii) of clause (ac) or subsection(1) of section 12A of the Act instead of sub-clause (ii) of clause (ac) of subjection (i) of the section 12A of the Act. Such mistake is not fatal to treat the application as invalid and hence Ld. CIT(E) is directed to consider the application of the assessee and pass an order de-novo. ITA No. 365/Ahd/2025 Prerna P Mandal Vs. CIT Asst. Year : N.A - 3– 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 06.05.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 06 .05.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "