SAHIB DAYAL FOUNDATION,CHANDIGARH V. COMMISSIONER OF INCOME TAX(EXEMPTIONS), CHANDIGARH

ITA 468/CHANDI/2025

AI Insights

The case involves Sahib Dayal Foundation Nirankari Darbar, which appealed against the rejection of their application for regular registration under Section 12A(1)(ac)(iii) of the Income Tax Act by the Commissioner of Income Tax (Exemptions), Chandigarh. The foundation had commenced its activities on April 4, 2008, and applied for provisional registration, which was granted. However, they mistakenly selected the clause applicable to trusts that had not commenced activities for their provisional registration. The Tribunal found that this was an inadvertent error and directed the CIT(E) to reconsider the application under the correct clause.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786506 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Appeal Filed On: 28-03-2025
• Laws Referred To: Section 12A(1)(ac)(iii) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT BHUSHAN GARG LD
• Assessee Lawyers: A.K. SOOD LD
• Keywords: Set aside
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH Virtual Hearing BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No. 468/CHANDI/2025 Sahib Dayal Foundation Nirankari Darbar Sector-21, Chandigarh-160021 बनाम/ Vs. CIT (Exemption) CR Building Sec-17, Chandigarh ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. AAHTS-9966-Q (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/Appellant by : Sh. A.K. Sood (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Bharat Bhushan Garg (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 11-11-2025 घोषणाकीतारीख /Date of Pronouncement : 17/11/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking registration u/s 12A(1)(ac)(iii) vide impugned order passed by learned Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E)] on 05-02-2025, the assessee is in further appeal before us. 2. Upon perusal of impugned order, it could be seen that the asssessee commenced its activities on 04-04-2008. In the new regime of registration, the assessee applied for provisional registration which was granted by CPC on 10-01-2024. However, post 01-10-2023, such Printed from counselvise.com 2 provisional registration could be granted only in case of a trust who had not yet commended its activities. Therefore, impugned regular registration application as filed by the assessee in Form 10AB u/s 12A(1)(ac)(iii) was rejected by Ld. CIT(E). Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR stated that as per amendment to Sec.12A w.e.f. 01- 10-2023, two separate provisions were created i.e., assessee which had not commenced the activities [Sec.12A(1)(ac)(vi)(A)] and the assessee who had already commenced its activities [(Sec.12A(1)(ac)(vi)(B)]. While seeking provisional registration, the assessee inadvertently selected Clause (A) instead of applicable Clause (B). The Ld. AR thus seeks consideration of application under correct clause as applicable to the assessee. 4. We find that the trust is an existing trust which has commenced its activities on 04-04-2008. The assessee’s return of income for AY 2010-11 was scrutinized u/s 143(3) vide assessment order dated 31- 10-2012 wherein the returned income of the assessee was accepted. In the new regime, the assessee applied for provisional registration on 03-01-2024 in Form No.10A clearly mentioning date of creation as 04- 04-2008. However, the assessee inadvertently selected clause (A) instead of applicable clause (B) of Sec.Sec. 12A(1)(ac)(vi) which has led to denial of regular registration to the assessee. Since the same was merely an inadvertent error and the assessee apparently fulfils all the other conditions to lay claim of regular registration, we set aside the impugned order and direct Ld. CIT(E) to consider the application Printed from counselvise.com 3 of the assessee under relevant clause as applicable to the assessee. The assessee is directed to plead and prove its application. 5. The appeal stand allowed for statistical purposes. Order pronounced on 17/11/2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 17/11/2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "