HINSA VIRODHAK SANGH,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 2282/AHD/2026Status: DisposedITAT Ahmedabad07 August 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a technical error in selecting the clause in the application form should not be fatal, especially when there are no adverse findings regarding the trust's genuineness or activities. The matter was remanded for de-novo adjudication.

What were the facts?

The assessee, a charitable trust registered under section 12AB, applied for approval under section 80G(5). The application was rejected by the CIT(E) due to an incorrect clause selection in the application form.

What were the issues?

Whether a technical error in selecting a clause in the application form for 80G approval can lead to rejection without considering the merits of the trust's eligibility.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI RAHUL CHAUDHARY

For Appellant: Shri Hemanshu Shah, AR
For Respondent: Shri Ram Tiwari, CIT. DR
Hearing: 22.07.2026Pronounced: 07.08.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

The captioned appeal has been filed by the assessee against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad dated 01.12.2025, whereby the application for approval under section 80G(5) of the Act was rejected.

2.

The assessee has raised the following grounds of appeal:

1.

The Ld.CIT(E) erred in law and on facts in rejecting the appellant’s application for approval u/s.80G(5) of the Act., 1961 due to wrong selection of clause. The appellant is a genuine charitable trust registered under section 12AB and carrying out charitable activities for the benefit

ITA No. 2282/Ahd/2026 Asst. Year : NA - 2– of the public at large. It is therefore prayed that the approval under section 80G(5) may kindly be granted to the appellant.

3.

The brief facts of the case are that the assessee is a charitable trust registered under section 12AB of the Act. It filed Form No. 10AB seeking approval under section 80G(5) of the Act. The Ld. CIT(E), however, rejected the application on the ground that the assessee had selected an incorrect clause while filing Form No. 10AB and, therefore, was not eligible to seek approval under the said clause.

4.

Aggrieved by the order of the Ld. CIT(E), the assessee has preferred the present appeal before the Tribunal.

5.

The learned counsel for the assessee submitted that the application for approval under section 80G of the Act was rejected solely on account of an inadvertent error in selecting the applicable clause in Form No. 10AB. It was contended that the rejection was not based on any adverse finding regarding the objects of the trust, the genuineness of its activities, or its eligibility for approval under section 80G(5) of the Act. The learned counsel submitted that the error was purely technical in nature and prayed that one more opportunity be granted to the assessee to explain the mistake before the Ld. CIT(E).

6.

On the other hand, the learned Departmental Representative submitted that the assessee is required to furnish the necessary details, explanations and supporting documents before the Ld. CIT(E.), who may examine the same in accordance with law.

ITA No. 2282/Ahd/2026 Asst. Year : NA - 3– 7. We have carefully considered the rival submissions and perused the material available on record. We find that the application of the assessee has been rejected solely on account of a technical error in quoting clause (ii) instead of clause (iv) while filing the application under section 80G of the Income-tax Act, 1961. In our considered opinion, such an inadvertent procedural mistake cannot be treated as fatal so as to render the application invalid, particularly when no adverse finding has been recorded with regard to the genuineness of the trust or its charitable activities. Considering the totality of facts, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(E) for de-novo adjudication. The Ld. CIT(E) shall afford the assessee a reasonable opportunity of being heard, permit it to rectify the technical defect and consider all the submissions, thereafter, pass an order in accordance with law.

8.

In the result, the appeal of the assessee is allowed for statistical purposes.

The order is pronounced in the open Court on 07.08.2026

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.08.2026 MV

ITA No. 2282/Ahd/2026 Asst. Year : NA - 4– 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(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file.

आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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