TAPASVI FOUNDATION TRUST,RAJKOT V. THE COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

ITA 270/AHD/2025

AI Insights

The case involves the Tapasvi Foundation Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under section 12A of the Income Tax Act, 1961. The Trust had initially filed an application in Form 10AB, which was rejected. A subsequent application was also rejected as it was deemed non-maintainable because it did not comply with the conditions of the CBDT Circular No.7 of 2024, particularly because the earlier application was not rejected at the time of filing the new application. The Tribunal dismissed the appeal, allowing the Trust to possibly pursue a separate appeal regarding the earlier application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717715 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 01-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: VIMAL DESAI
• Keywords: Condonation of delay; Bonafide belief
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 270/Ahd/2025 (िनधा[रण वष[ / Assessment Year : NA) Tapasvi Foundation Trust C/o. Sarda & Sarda (CA), Sakar 1st Floor, Dr. Radha- Krishnan Road, Opp. Rajkumar College, Rajkot – 360001, Gujarat बनाम/ Vs. The Commissioner of Income Tax (Exemption) 609, Floor-6, Aayakar Bhavan (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar- Prahladnagar Road, Ahmedabad Öथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AADTT7273P (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Vimal Desai, AR Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Alpesh Parmar, CIT.DR Date of Hearing 13/08/2025 Date of Pronouncement 14/08/2025 (आदेश)/ORDER PER SMT. ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “CIT(E)”), Ahmedabad dated 06.12.2024, rejecting assessee’s application seeking registration of the assessee trust filed in Form No. 10AB under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Printed from counselvise.com ITA No. 270/Ahd/2025 [ Tapasvi Foundation Trust vs. CIT(E)] - 2 – Act, 1961 (hereinafter referred to as the “Act”), as non- maintainable. 2. The grounds raised by the assessee are as under: “1. The order passed under section 12AB(1)(b)(ii) of the Act is bad in law. 2. The learned CIT(Exemption) has erred in law as well as on facts in rejecting the application for registration u/s 12A(1)(ac)(iii) by considering it as non-maintainable.” 3. The order of the Ld. CIT(E) reveals that the assessee has originally filed an application in Form 10AB on 30.03.2024, which was rejected by the Ld. CIT(E) vide his order dated 02.09.2024. In the meanwhile, the assessee had filed fresh application dated 05-06-2024,the impugned application before us, which the Ld. CIT(E) noted that though it was filed within the extended time provided by the CBDT Circular No.7 of 2024, dated 25.04.2024 i.e. upto 30.06.2024, however, since the earlier application filed by the assessee was not rejected by then, having been rejected on 02-09-2024, ,therefore, the assessee was not saved by the Clause 4.1 of the said Circular which provided that where the earlier application of the assessee stood rejected on the date of the issuance of the Circular, on account of having been furnished after the due date, the assessee can file a fresh application in Form 10AB within the extended time provided i.e. 30.06.2024. 4. Ld. Counsel for the assessee was unable to controvert the factual findings of the Ld. CIT(E) as noted above. The Ld. Printed from counselvise.com ITA No. 270/Ahd/2025 [ Tapasvi Foundation Trust vs. CIT(E)] - 3 – Counsel for the assessee was also unable to demonstrate as to how the assessee was entitled to benefit of extension of time provided by the CBDT Circular No. 7 of 2024, more particularly, clause 4.1 thereof, noting which the Ld. CIT(E) had found assessee’s application non-maintainable. 5. In the light of the same, we have no hesitation in confirming the order of the Ld. CIT(E) rejecting the assessee’s application seeking approval u/s.12A of the Act. We may, however add that the assessee is at liberty to pursue the appeal against the earlier application rejected by the Ld. CIT(E), since, it was contended before us that the assessee had filed a fresh application under the bonafide belief that it was entitled to do so as per Circular No.7 of 2024. We are aware that the appeal so filed by the assessee would be belatedly filed, but the assessee is at liberty to plead before the ITAT the condonation of delay on the bonafide belief as noted above by us. In the light of the same, appeal filed by the assessee is dismissed. 6. In the result, appeal filed by the assessee is dismissed. This Order pronounced on 14/08/2025 Sd/- Sd/- (SUCHITRA KAMBLE) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 14/08/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. Printed from counselvise.com ITA No. 270/Ahd/2025 [ Tapasvi Foundation Trust vs. CIT(E)] - 4 – 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "