SHREE HEMIBEN KANJIBHAI MALAVIYA CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1410/AHD/2025

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The case involves Shree Hemiben Kanjibhai Malaviya Charitable Trust appealing against the decision of the CIT (Exemption), Ahmedabad, which rejected their application for final/regular approval under section 80G(5) of the Income Tax Act due to a clerical error in the application form. The Tribunal noted that the CIT (E) was aware of the provisional approval previously granted and acknowledged the confusion caused by recent amendments to section 80G. The Tribunal found that the mistake in the application form was apparent and did not warrant rejection of the application, emphasizing the need for the CIT (E) to reconsider the application as per the correct clause.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 776307 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2025
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 08-07-2025
• Laws Referred To: Income Tax Act, 1961
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: BIJALKUMAR GANDHI
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं अ पूण\u001a गु!ा, लेखा सद\u001b क े सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.1410/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : N.A. Shree Hemiben Kanjibhai Malaviya Charitabale Trust C-1/6, Dwarkesh Apartment Rajtilak Raw House Lad Society, Bodakdev Ahmedabad – 380 054 बनाम/ v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: ABETS 5160 N (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Bijalkumar Gandhi, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 15/09/2025 घोषणा की तारीख /Date of Pronouncement: 17/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 19/06/2025, rejecting the application for final/regular approval u/s.80G(5) of the Income Tax, 1961 (hereinafter referred to as ‘the Act’). Printed from counselvise.com ITA No. 1410/Ahd/2025 Shree Hemiben Kanjibhai Malaviya Charitable Trust 2 2. At the outset, it has been brought to our knowledge that the ld. CIT(E) has rejected the application of the assessee due to technical/clerical error while mentioning/marking the relevant clause/code in the application form. The CIT(E) has mentioned that in relation to application moved for regular registration u/s. 80G(5) of the Income Tax Act, the assessee was required was to choose/select clause (iii) of first proviso to sub-section (5) of section 80G of the Act, whereas, the assessee had selected clause (ii) of first proviso to sub-section (5) of section 80G of the Act in the prescribed Form 10AB. 3. A perusal of the impugned order of the ld. CIT(E) would reveal that the CIT(E) was well aware that the concerned assessee had been granted provisional approval u/s. 80G(5) of the Act and that the present application was moved by the assessee for grant of final/regular approval u/s. 80G(5) of the Income Tax Act. It is pertinent to mention here that due to several recent amendments in the relevant provisions of the section 80G of the Income Tax Act, a confusion relating to the various clauses of the relevant sections and prescribed forms have occurred not only amongst the assessees but also amongst professionals/tax practitioners as well as the income tax authorities. Even the CBDT has also issued clarificatory circulars. Due to the complexity of the provisions, if an inadvertent mistake had occurred in the application from furnished by the assessee while selecting the relevant code/column in the prescribed application form, but at the same time, the said mistake was apparent from the contents of the application and it was apparent that the said application has been made by the assessee for final/regular registrations under the relevant provisions of section 80G of the Act, the Ld. CIT(E), in our view, was not justified in rejecting such application. In view of this, the impugned order of the CIT(E) in the Printed from counselvise.com ITA No. 1410/Ahd/2025 Shree Hemiben Kanjibhai Malaviya Charitable Trust 3 captioned appeal is set aside. It is directed that the application of the assessee pertaining to the approval u/s. 80G(5) of the Act will be read and treated to have been moved under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, irrespective of the fact that the assessee has mentioned any other clause inadvertently in the application form. The ld. CIT(E) will consider and decide the said application in accordance of law within a period of 90 days from the date of receipt of copy of this order. 4. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 17/09/2025. Sd/- Sd/- (Annapurna Gupta ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 17/09/2025 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 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 Printed from counselvise.com "