SHRI GUJARAT KADAVA PATIDAR JAN KALYAN TRUST,MEHSANA GUJARAT V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1149/AHD/2025

AI Insights

The case involves the Shri Gujarat Kadva Patidar Jankalyan Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied their application for registration under section 12A(1)(ac)(vi) of the Income Tax Act, 1961. The Trust argued that an inadvertent error in selecting the section code in their application form led to the rejection. The Tribunal found that the mistake, if any, occurred in the application for provisional registration and not in the application for regular registration. The Tribunal decided to set aside the matter to the CIT(E) for re-examination and allowed the Trust to rectify the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707202 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 21-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: SUNIL TALATI
• Keywords: Set aside; Opportunity of being heard
• Section: 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri TR Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha , Accountant Member Shri Gujarat Kadava Patidar Jankalyan Trust 36, First Floor, Mahatma Gandhi Shopping Centre, Rajmehal Road, Mehsana - 384001 PAN: AAZTS5321F (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee by: Shri Sunil Talati, A.R. Revenue by: Shri Alpesh Parmar, CIT-D.R. Date of hearing : 08-07-2025 Date of pronouncement : 10-07-2025 आदेश/ORDER PER : NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER This appeal is filed by the assessee against the denial of approval u/s. 12A(1)(ac)(vi) of the Income Tax, 1961 vide order dated 17/03/2025 passed by Commissioner of Income Tax (Exemption), Ahmedabad [in short the CIT(E)]. ITA No. 1149/Ahd/2025 Assessment Year : NA I.T.A No. 1149/Ahd/2025 A.Y. NA Shri Gujarat Kadva Patidar Jankalyan Trust vs. CIT (Exemption) 2 2. The following grounds have been taken in this appeal: - 1. The Ld. CIT (Exemption), Ahmedabad had erred in rejecting the application filed by the Appellant Trust on the ground that application filed in Form 10AB has not filed within time limit prescribed and therefore it is not maintainable. On facts and circumstances of the case, the action of the Ld. CIT (Exemption) of rejecting application filed u/s 12A(1)(ac)(vi-B) of the Act which is incorrect. The same be held now. 2. Without prejudice to the above, the appellant trust has selected the incorrect section code - item (B) of sub clause (vi) of clause (ac) of sub- section (1) of section 12A instead of the correct code, which is sub clause (iii) of clause (ac) of sub-section (1) of section 12A. 3. It is respectfully submitted before your Honor that the appellant was unable to avail proper guidance and professional assistance at the time of filing Form 10AB under the relevant provisions of the Income Tax Act, 1961. This lack of access to adequate professional support led to inadvertent errors in the application. 4. The order passed by Ld. CIT is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 5. Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing of the appeal. 3. Shri Sunil Talati, the ld. counsel for the assessee submitted that the ld. CIT(E) had rejected the application filed by the assessee for the reason that the assessee Trust was not found eligible for registration under section 12A(1)(ac)(vi) of the Act. The Ld. AR explained that the activity of the trust had commenced on 01.04.2022. While filing the application in Form 10AC, there was an inadvertent error as incorrect section code - item (B) of sub clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act was selected in place of the correct code, which was sub clause (iii) of clause (ac) of sub-section (1) of section 12A of the I.T.A No. 1149/Ahd/2025 A.Y. NA Shri Gujarat Kadva Patidar Jankalyan Trust vs. CIT (Exemption) 3 Act. He explained that this mistake had occurred for the reason that the assessee was operating from a remote location and there was no proper professional guidance available. The Ld. AR submitted that the assessee may be allowed an opportunity to rectify the mistake in the application and the matter may be set aside to the file of Ld. CIT(E) with a direction to re-adjudicate the issue. 4. Per contra, Shri Alpesh Parmar, the ld. CIT-D.R. submitted that the Ld. CIT(E) had rightly rejected the application as filed by the assessee. 5. We have considered the submission of the assessee and perused the materials placed before us. The Ld. CIT(E) had rightly rejected the application filed by the assessee Trust u/s 12A(1)(ac)(vi) of the Act, as the conditions for such approval was not found satisfied. In fact, the Ld. CIT(E) had made certain queries in the course of the proceeding before him, which was responded by the assessee. However, the fact that there was a mistake in the application of the assessee was not brought to the notice of Ld. CIT(E). The assessee has now submitted that there was a mistake in the application in quoting the section code under which the approval was sought. According to the assessee, the section code “Item (B) of sub-section (vi) of clause (ac) of sub- section (1) of section 12A” was wrongly quoted in the application in place of correct section code “sub-section (iii) of clause (ac) of sub-section (1) of section 12A” of the Act. A copy of order dated 23.09.2021 of the provisional registration allowed to the assessee I.T.A No. 1149/Ahd/2025 A.Y. NA Shri Gujarat Kadva Patidar Jankalyan Trust vs. CIT (Exemption) 4 has been brought on record. It is found there from that the assessee was allowed provisional registration under sub- section (vi) of clause (ac) of sub-section (1) of section 12A for the AY 2022-23 to AY 2024-25. When the provisional registration was allowed under sub-section (vi) of clause (ac) of sub-section (1) of section 12A of the Act, the assessee had rightly applied for regular registration under this provision only. The mistake on the part of the assessee, if any, had occurred in the application for provisional registration and not in the application for regular registration. 6. The contention of the assessee is that there was a mistake in wrong selection of section code in the application. We don’t find any such mistake in the regular registration application. Rather, the mistake was made at the time of filing the application for provisional registration. The moot issue to be considered here is, if the provisional registration was allowed under one sub-clause, whether the assessee could have made application for final registration under different sub-clause. For this purpose, we deem it proper to set aside the matter to the file of Ld. CIT(E) with a direction to first examine this issue and thereafter allow an opportunity to the assessee to rectify the application, if permissible as per the provisions of law. The assessee may also be allowed a proper opportunity of being heard in the matter. The assessee will also be free to make a fresh application under the correct provisions of the Act, if it so desires. I.T.A No. 1149/Ahd/2025 A.Y. NA Shri Gujarat Kadva Patidar Jankalyan Trust vs. CIT (Exemption) 5 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. This order is pronounced in the Open Court on 10/07/2025. Sd/- Sd/- (TR SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad : Dated 10/07/2025 आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद "