TATSAT PUBLIC CHARITABLE TRUST,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1761/AHD/2025

AI Insights

The case involves Tatsat Public Charitable Trust appealing against the decision of the Commissioner of Income-Tax (Exemption), who granted the Trust registration under section 12AB for five years instead of the ten years allowed by the amended provisions effective from 01.04.2025. The Trust argued that the registration should be for ten years as per the new amendment, given that their application was processed after the amendment came into effect. The Tribunal agreed with the Trust's position, citing the specific date of the registration order as the critical factor for applying the ten-year term.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791844 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 22-09-2025
• Laws Referred To: Section 12AB of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: DIVYANG SHAH
• Keywords: Charitable institution
• Section: 11; 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No. 1761/Ahd/2025 (Assessment Year:N.A) Tatsat Public Charitable Trust, C/o. Divyang Shah & Co., Chartered Accountants, 201, 2nd Floor, Devashish Complex, Nr. Regenta, Central Antarim Hotel, Off. CG Road, Ahmedabad – 380009. [PAN: AACTT7148 N] Vs. The Commissioner of Income-Tax (Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by: Shri Divyang Shah, AR Respondent by: Shri R P Rastogi, CIT. DR Date of Hearing 08.12.2025 Date of Pronouncement 12.12.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT: - This appeal is filed by the Assessee against the appellate order dated 20.08.2025 passed by the Commissioner of Income Tax, (Exemption), relating to the Assessment Year N.A. 2. The solitary issue raised in this appeal is that the Ld. CIT(Exemption) has erred in granting registration under section 12AB of the Act for five assessment years instead of ten assessment years. Printed from counselvise.com 2 | P a g e ITA No.1761/Ahd/2025 A.Y N.A 2 3. The facts of the case are that the assessee is a Trust and applied for registration in Form No. 10AB under the relevant provisions of the Act. The details of the Trust’s application and approval are as under: a. Application for registration (Form 10AB) dated 17.01.2025 under Sub- clause (ii) of clause (ac) of sub-section (1) of section 12A b. Order of registration (Form 10AD) dated 20.08.2025 under Sub-section (1)(b) of section 12AB 4. The Ld. Counsel for the assessee submitted in his written submissions that an amendment has been introduced in the proviso to sub-section (1) of section 12AB, whereby registration shall be granted for ten years instead of five years in certain cases. The amended proviso reads as under: “Provided that where an application is made under sub-clause (i) to (v) of the said clause, and the total income of such trust or institution, without giving effect to the provisions of sections 11 and 12, does not exceed rupees five crores during each of the two previous years preceding the previous year in which such application is made, the provisions of this sub-section shall have effect as if for the words ‘five years’, the words ‘ten years’ had been substituted.” The Ld. Counsel further submitted that as per the Finance Act, 2025, the above amendment to section 12AB is applicable from 01.04.2025. Since the assessee-trust was granted registration on 20.08.2025 for five years, it is entitled to registration for ten years in view of the amended proviso. 5. The Ld. DR argued that since the assessee had filed its application on 17.01.2025, he is eligible only for registration for five years. Rebutting this argument, the assessee submitted that as the order was passed by the Ld. CIT(E) on 20.08.2025, the registration should have been granted for ten years in view of the amended provisions. We direct that the assessee be granted registration approval for ten years. The Revenue, however, retains the right to revoke the Printed from counselvise.com 3 | P a g e ITA No.1761/Ahd/2025 A.Y N.A 3 registration if the functions of the trust are found to be not in accordance with law at any point to time whether during the initial 5 years or full 10 years period. Accordingly, the appeal of the assessee is allowed. 6. In the result, the appeal file by the assessee is allowed. The order is pronounced in the open Court on 12.12.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 12.12.2025 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "