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Facts
The appellants are various charitable trusts that applied for registration or approval under sections 12A/12AB and 80G of the Income Tax Act, 1961. Their applications were rejected by the CIT(Exemption) for various reasons, including non-compliance with notices, delay in filing appeals, and incorrect selection of sections. The appeals were filed late, but the tribunal condoned the delay.
Held
The Tribunal condoned the delay in filing the appeals. Observing that the assessees were not granted sufficient opportunities to present their cases before the CIT(Exemption) and that the Ld. DR did not object to granting further opportunity, the Tribunal set aside the orders of the CIT(Exemption).
Key Issues
Whether sufficient opportunity was granted by the CIT(Exemption) to the assessees to represent their cases, and whether the appeals filed by the assessees should be remanded back to the CIT(Exemption) for fresh adjudication.
Sections Cited
10(23C), 12A, 12A(1)(ac), 12A(1)(ac)(ii), 12AB, 12AB(1)(b), 80G, 80G(5), 80G(5)(ii), 80G(5)(iii), 80G(5)(iv)
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Income Tax Appellate Tribunal, Rajkot Bench, Rajkot
Before: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha
आयकरअपीलीयअिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Dr. Dinesh Mohan Sinha, Judicial Member आयकरअपीलसं./ITA No.16/Rjt/2026 (�नधा�रणवष�/Assessment Year: (2026-27) Karsandas Kalabhai Thakkar Public CIT (EXEMPTION) Charitable Trust, Vs. Room No.609, Floor-6, Aayakar Bhawan At Mauvan, Taluka Khambhalia, (Vejalpur), Nr. Sachin Tower, 100 Foot Dist- Jamnagar, Gujarat- 361001 Road, Anandnagar-Prahladnagar Road, Ahmedabad, Gujarat, 380015, Ahmedabad. �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATK1903A (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Darshak Thakkar, Ld. AR : Shri Sanjay Punglia, Ld. CIT DR Respondent by आयकरअपीलसं./ITA No. 41/Rjt/2026 (�नधा�रणवष�/Assessment Year: (2026-27) MPSMC Alumni Scholarship Fund & CIT (EXEMPTION) Foundation, Ahmedabad, Gujarat, 380001. Samarpan Panchvati Main Road, Opp. Vs. Shrinathji Tower, Panchvati, Rajkot, Gujarat 360001 �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAHTM6187H (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Ms. Manalee N. Kamdar, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT DR
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. आयकरअपीलसं./ITA No. 42/Rjt/2026 (�नधा�रणवष�/Assessment Year: (2026-27) MPSMC Alumni Scholarship Fund & CIT (EXEMPTION) Foundation, Vs. Ahmedabad, Gujarat, 380001. Samarpan Panchvati Main Road, Opp. Shrinathji Tower, Panchvati, Rajkot, Gujarat 360001 �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAHTM6187H (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Ms. Manalee N. Kamdar, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT DR आयकरअपीलसं./ITA No. 85/Rjt/2025 (�नधा�रणवष�/Assessment Year: (2022-23) Sant Shri Mohandasbapa Gurushri CIT (EXEMPTION) Shamlabapa Manav Seva Trust Rajkot, Room No.609, Floor-6, Aayakar A 1103 Rajdeep Tower Pradyuman Green Vs. Bhawan (Vejalpur), Anandnagar- City, Opp. Kristal Mall Vrundavan, Society Prahladnagar Road, Ahmedabad, Road, Rajkot, Gujarat, 360005 Gujarat, 380015. �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAYTS8531L (अपीलाथ�/Appellant) (��यथ�/Respondent)
Appellant by : Shri Krutarth Desai, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT DR
आयकरअपीलसं./ITA No. 864/Rjt/2025 (�नधा�रणवष�/Assessment Year: (2026-27) Babra Kelvani Mandal, CIT (EXEMPTION) Babra Amreli, Amreli, Room No.609, Floor-6, Aayakar Bhawan Vs. Gujarat 365421 (Vejalpur), Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad, Gujarat, 380015. �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATB2006P (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Darshak Thakkar, Ld. AR : Shri Sanjay Punglia, Ld. CIT DR Respondent by 2
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. आयकरअपीलसं./ITA No. 868/Rjt/2025 (�नधा�रणवष�/Assessment Year: (2025-26) PU Shree Ranchhoddasjibapu Public CIT (EXEMPTION) Cheritable Trust, Room No.609, Floor-6, Aayakar Ravi Residency Dharmnagar Main Vs. Bhawan (Vejalpur), Nr. Sachin Tower, Road, 100 Foot Road, Anandnagar- 150 Feet Ring Road Rajkot, Prahladnagar Road, Ahmedabad, Gujarat 360007 Gujarat, 380015. �ायीलेखासं./जीआइआरसं./PAN/GIR No.: AABTP8125A (अपीलाथ�/Appellant) (��यथ�/Respondent)
Appellant by : Shri Darshak Thakkar, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT DR Date of Hearing : 16/03/2026 Date of Pronouncement : 17/04/2026
ORDER Per, Dr. Dinesh Mohan Sinha, JM: Captioned appeals filed by the assessees, pertaining to Assessment Year 2026-27, is directed against the order passed by the Learned Commissioner of Income Tax(Exemption), wherein the appellant has applied for registration of approval in Form No.10AB, u/s.12A(I)(ac)(II)) of the Act, and was rejected by CIT(e ) by order dt. 29.10.2025.
First, we shall take ITA No.41/Rjt/2026, 868/Rjt/2025, 864/Rjt/2025, 42/Rjt/2026, 16/Rjt/2026, 85/Rjt/2025. Since, the issues involved in all these appeals are common and identical, therefore, these appeals are being disposed of by a consolidated order. For the sake of convenience, the grounds of appeal as well as the facts narrated in ITA No.41/Rjt/2026, in the case of MPSMC Alumni Scholarship Fund & Foundation, for relevant 3
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. AY 2026-27 have been taken into consideration for deciding the above appeals en masse.
ITA No.41/Rjt/2025 3. At the outset, that the appeal filed by the assessee late by 15-days along with the appeal the assessee has filed an application for condonation of delay, supported by Affidavit. That the reasons for delay was that the main trustee was expired and for the first time knowledgment of the impugned ex-parte order was noticed on 07.01.2026 at the time of checking status of file return for FY 2024-25. That the delay in file the appeal is neither intentional nor deliberate but has occurred due to circumstances beyond the control of the applicant. The assessee has filed the appeal and the delay is bona fide, no mala fide intention of the assessee, the AR requested to for an opportunity to present the case before CIT(E), on the contrary the DR has not objected to request of the AR. We find that there was sufficient cause for delay in filing the appeal, we note that section 253(5) of the Act empower to ITAT to admit an appeal after expiry of prescribed time. Thus, taking into account facts of the case and the provisions of Section 253(5) of the Act, we take a judicious view and condone the delay and admit the appeal of the assesse.
Considering the above facts, we note that assessee has granted sufficient opportunity of being heard but the assesse did not avail the opportunity to explain the case before CIT(E). However, on account of non-compliance attitude of the assessee, we impose a cost of Rs.25,000/- on the assessee which should be deposited in the Prime Minister National Relief Fund, within 20-days from today and the receipt of the same to be submitted before the registry of this Court. 4
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. 5. Brief facts qua the issue are that the appellant is a Public Charitable Trust, duly constituted under Bombay Public Charitable Public Trust Act, 1950. Trust was being managed and corresponded with through Late Dr Kumudchandra Amilal Fichadia (M.S General Surgeon) residing at Veraval, who was a Trustee of the Applicant Trust and registered with Charity Commissioner office Rajkot. The Trust has been carrying on charitable activities within the meaning of section 2(15) of the Income-tax Act, 1961. The Appellant had been earlier granted registration under section 12A & 80G of the Income-tax Act and, pursuant to statutory amendments, filed an application for renewal / revalidation under section 12AB within the prescribed time. During the course of processing of the said application, certain notices were issued by the Department only through the income-tax e-filing portal / registered e-mail ID.
The assesse could not reply to the notice and no evidence could be furnished before the CIT(Exemption), now the assesse is ready to submit all the relevant documents before the CIT(Exemption). Therefore, we are of the view that one more opportunity given to the assessee before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption).
ITA No.868/Rjt/2025 6. That in this case, the assesse has applied registration of the trust and filed an application in Form 10AB under item (B) of sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of Income Tax Act, 1961as per above details.
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. 7. In this case, the issue is that the CIT(E) has been issued three notices on dtd. 21.03.2025, 22.05.2025 and 12.06.2025, that the reply of the assesse was not furnished para wise details. The request of the AR for granting an opportunity to represent the case before the CIT(E), the Ld. DR has not been objected to prayer, therefore, we are of the view that one more opportunity should be given to the assesse to present the case before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption) for proper adjudication.
ITA No.864/Rjt/2025 8. That in the case, the assesse has applied for renewal of approval has been filed in Form 10AB under clause (ii) of first proviso to sub-section (5) of section 80G of Income Tax Act, 1961.
In this case, while filing the application the applicant has inadvertently selected wrong section, the CIT(Exemption) has no power under Income Tax Act, 1961 to change the section opted/selected by the applicant in Form 10AB. The request of AR for granting an opportunity to represent the case before the CIT(E) however, the Ld. DR has not been objected to prayer, therefore, we are of the view that one more opportunity should be given to the assesse to correct the mistake in the application Form 10AB and present the case before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption) for proper adjudication.
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. ITA No.42/Rjt/2025 10. That in the case, the assesse has applied for approval of the trust/institution/fund under clause (ii) of first proviso to sub-section (5) of section 80G of the I.T. Act, 1961. Due notices has been issued on 08.09.2025 and 09.10.2025. The assessee could not respond to the notices remain uncomplied with the application in Form 10AB was rejected. During the course of hearing, the request of the AR for granting an opportunity to represent the case before the CIT(E), the Ld. DR has supported the Ld. AR, therefore, we are of the view that one more opportunity should be given to the assesse to present the case before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption) for proper adjudication.
ITA No.16/Rjt/2025 11. That in the case, the assesse has applied for approval under sub-clause (B) to clause (iv) of first proviso to sub-section (5) of section 80G of the I.T. Act, 1961 filed in Form no. 10AB electronically. Accordingly, notices were issued to the applicant, the assesse could not complied with the notice. The Ld. CIT(E) rejected the application with following remarks. However, on perusal details available on record it is observed that the applicant does not have any valid order for registration u/s. 12A/12ABof the Act i.e. neither in Form No.10AD(i.e. u/s. 12AB(1)(b) or U/s. 10(23C) (2nd proviso) of the Act)nor in Form No. 10AC(i.e. u/s 12A(1)(ac) (i) or u/s. 10(23C)(i) (1st proviso) of the Act)OR the applicant has a valid order of registration u/s. 12A/12AB of the Act (i.e. for 5 years) which was about to expire, however the applicant has failed to re-new it. Also, following application(s) of the applicant for registration u/s. 12A/12AB of the Act has already been rejected:
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors. Sr. Application filed Application number Date of No. u/s of the Act Application 1. 12A(1)(ac)(ii) CIT(EXEMPTION), 20/06/2025 AHMEDABAD/2025-26/12AA/ 16600
Under similar circumstances, where the assessee did not have valid registration u/s 12A of the Act, the Hon'ble Gujarat High Court in the case of CIT (Exemptions) vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust, reported in 122 taxmann.com 98 has held that the registration u/s 12A of the Act is a pre-requisite for grant of approval u/s 80G of the Act. In absence of valid registration certificate u/s 12A of the Act, approval u/s 80G could not be granted. The application was rejected as non-maintainable.
During the course of hearing, the request of the AR for granting an opportunity to represent the case before the CIT(E) however, the Ld. DR has not been objected to prayer, therefore, we are of the view that one more opportunity should be given to the assesse to present the case before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption) for proper adjudication.
ITA No.85/Rjt/2025 12. That in the case, the assesse has applied for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the I.T. Act, 1961 filed in Form no. 10AB electronically. Notices were issued to the applicant.
That Ld. CIT(E) rejected the application and observed that the objects of the applicant as stipulated in the instrument of creation of the Trust are religious in nature which put the applicant under the category of composite trust i.e. religious cum charitable trust. 8
ITA No. 16-2026, 41-2026, 42-2026, 85-2025, 864-2025, 868-2025, Karsandas Kalbhai Thakkar Public Charitable Trust and Ors.
During the course of hearing the AR submitted that the assesse will change the object and get registered with PTR, which will apply to CIT(Exemption), DR has not objected The request of the AR for granting an opportunity to represent the case before the CIT(E) however, the Ld. DR has not been objected to prayer, therefore, we are of the view that one more opportunity should be given to the assesse to present the case before the CIT(Exemption) therefore we set aside the order of the CIT(Exemption) and the issue remand back to the file of the CIT(Exemption) for proper adjudication.
In the result, all appeals ITA No.16-2026, ITA No.41-2026, ITA No.42- 2026, ITA No.85-2025, ITA No.864-2025, ITA No.868-2025, of the assessees are allowed for statistical purposes.
Order is pronounced in the open Court Today on 17/04/2026.
Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Dr. Dinesh Mohan Sinha ] Accountant Member Judicial Member //True Copy// राजकोट/Rajkot िदनांक/ Date: 17/04/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, RAJKOT 6. Guard File By order
Assistant Registrar/Sr. PS/P.S. ITAT, Rajkot 9