SHRI VISHA KHADAYATA MUTA TAD KELVANI MANDAL,NADIAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 2001/AHD/2024

AI Insights

The case involves Shri Visha Khadayata Muta Tad Kelvani Mandal, the appellant, who appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for registration under Section 12A of the Income Tax Act, 1961. The rejection was based on a clerical error in selecting the appropriate clause while filing Form 10AB electronically. The Tribunal considered various judicial precedents that minor procedural errors should not lead to outright rejection of applications and decided to remand the matter back to the CIT(E) for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472266 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: Shree Swaminarayan Gadi Trust vs. CIT(E), Uttar Gujarat Shikshan Seva Trust, Sauhard vs. CIT(E), Sarada Mission Sevasram
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: PLRATHVI RAJ MEENA
• Assessee Lawyers: CHETAN SHAH
• Keywords: Set aside; Principle of natural justice
• Section: 12A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “डी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ D ” BENCH, AHMEDABAD \u0016ी िस\u0018ाथ\u001a नौिटयाल, \u0011ाियक सद\u001e एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद\u001e क े सम%। ] ] BEFORE SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.2001/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : - Shri Visha Khadayata Muta Tad Kelvani Mandal Ichchhaba Hall Smt. Kalaba Jariwala Bhuvan Mugal Kot, Nadiad – 387 001 (Gujarat) बनाम/ v/s. The CIT(Exemption) Anandnagar-Prahladnagar Road Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AABTS 6502 N (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee by : Shri Chetan Shah, AR Revenue by : Shri PLrathvi Raj Meena, CIT-DR सुनवाई की तारीख/Date of Hearing : 13/02/2025 घोषणा की तारीख /Date of Pronouncement: 14/02/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal has been filed by the assessee against the order dated 17-10-2024 of the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as \"CIT(E)\"] rejecting the application for registration under Section 12A of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\"]. 2. The assessee raised following grounds of appeal: ITA No.2001/Ahd/2024 Shri Visha Khadayata Muta Tad Kelvani Mandal 2 1. Rejection Order passed by the Commissioner of Income Tax (Exemption) Ahmedabad is bad in Law and against the natural justice. 2. The Commissioner of Income Tax (Exemption) Ahmedabad has erred in Law and on facts, in rejecting the application in form 10AB U/s 12AB of the Income Tax Act, 1961. 3. The ld. CIT(E) failed to appreciate the clerical error committed in selecting appropriate head in drop down list provided in e-filing portal while furnishing Form 10AB electronically cannot lead to denial of registration, more particularly, on the fact that appellant is fulfilling all the conditions provided u/s 12A for becoming eligible to obtain registration. 4. Your appellant crave, leave to add, alter, & or to amend modify substitute all or any ground of appeal before final hearing if necessity so arise. 3. During the course of hearing before us, the Authorized Representative (AR) of the assessee contended that the rejection of its application was based solely on a clerical error in selecting the appropriate clause while filing Form 10AB. The assessee had erroneously applied under Section 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Act, and the CIT(E) rejected the application on this procedural ground without considering its merits. The AR further submitted that the CIT(E) had issued notices on 06/08/2024 and 09/09/2024, seeking additional details regarding the application under Section 12A(1)(ac)(iii) of the Act, indicating that the application was initially accepted for processing. However, before the assessee could respond to these notices, a subsequent notice dated 13/09/2024 was issued, questioning the validity of the application based on the incorrect clause selection. The rejection order was passed without providing the assessee an opportunity to rectify the procedural defect. ITA No.2001/Ahd/2024 Shri Visha Khadayata Muta Tad Kelvani Mandal 3 3.1. The assessee placed reliance on various judicial precedents, including Shree Swaminarayan Gadi Trust vs. CIT(E) (ITA No. 369/SRT/2024), where the ITAT Surat Bench held that minor procedural errors in filing should not lead to outright rejection, and the CIT(E) must consider applications on their merits. The assessee also cited decisions of the Ahmedabad ITAT in the case(s) of Uttar Gujarat Shikshan Seva Trust (ITA No. 1090/AHD/2023) and Sauhard vs. CIT(E) (ITA No. 747/AHD/2024), as well as Kolkata ITAT in the case of Sarada Mission Sevasram (ITA No. 994/KOL/2023), where similar relief was granted. 4. The Departmental Representative (DR) was heard and did not raise any objection to remanding the matter back to the CIT(E) for fresh adjudication. 5. Considering the submissions of the assessee, the reliance placed on judicial precedents, and the fact that the DR has not objected, we are of the view that the matter needs to be restored to the file of the CIT(E) for fresh adjudication. The CIT(E) is directed to consider the application on its merits, provide the assessee a reasonable opportunity to present its case, and allow the necessary rectification of the application form, if required, in accordance with the law. 5.1. In view of the above, the impugned order of the CIT(E) is set aside, and the matter is restored to the file of the CIT(E) for fresh adjudication after granting due opportunity to the assessee. ITA No.2001/Ahd/2024 Shri Visha Khadayata Muta Tad Kelvani Mandal 4 6. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 14th February, 2025 at Ahmedabad. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 14/02/2025 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 , राजोकट/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 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 14.2.2025 2. Date on which the typed draft is placed before the Dictating Member. : 14.2.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 14.2.25 7. Date on which the file goes to the Bench Clerk. : 14.2.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "