THE VALSAD SARVAJANIK EDUCATION SOCIETY,VALSAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 896/SRT/2026Status: DisposedITAT Surat17 July 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the matter to the CIT(E) for fresh adjudication. This was to consider the subsequent grant of 12A/12AB registration and to examine if other statutory conditions for 80G(5) approval were met.

What were the facts?

The assessee, an educational society, had its application for renewal of approval under Section 80G(5) rejected by the CIT(E) because it lacked registration under Section 12A/12AB. However, the assessee subsequently obtained the required 12A/12AB registration after the rejection order.

What were the issues?

Whether the denial of 80G(5) approval solely on the lack of 12A/12AB registration is sustainable when such registration is obtained subsequently. The need to re-examine the application in light of new developments.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12A,Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Suresh K Kabra, CA
For Respondent: Shri Aashish Pophare, CIT-DR

आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by the order bearing DIN: ITBA/EXM/F/EXM45/2025-26/1087001835(1) dated 08.03.2026 passed by learned Commissioner of Income-Tax (Exemption), Ahmedabad [“Ld. CIT(E)”] by which the assessee’s application for renewal of approval u/s 80G(5) of Income-tax Act, 1961 has been rejected, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

Page 1 of 4

The Valsad Sarvajanik Education Society ITA No. 896/Srt/2026 2. The brief background of the case is that the assessee is an old trust engaged in public welfare activities. The assessee was earlier granted approval u/s 80G(5) by the Income-tax Department vide order dated 24.09.2021 for the period from AY 2022-23 to AY 2026-27, a copy of order placed in the case file. Thereafter, the assessee filed an application before the Ld. CIT(E) seeking renewal of approval u/s 80G(5). However, vide impugned order dated 08.03.2026, the Ld. CIT(E) rejected assessee's application. Aggrieved, the assessee is in appeal before us.

3.

For ready reference, the impugned order passed by Ld. CIT(E) is scanned and reproduced below:

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The Valsad Sarvajanik Education Society ITA No. 896/Srt/2026 4. Ld. AR for the assessee referred the above-reproduced order and submitted that the Ld. CIT(E) rejected assessee’s application for renewal of approval u/s 80G(5) on the ground that the assessee did not possess registration u/s 12A/12AB, which is a mandatory pre-condition for grant of approval u/s 80G(5). However, subsequent to passing of impugned order dated 08.03.2026, the assessee has been granted registration u/s 12A/12AB by the office of the Ld. CIT(E) vide order dated 10.04.2026. A copy of the order was placed before Bench; first page of same is scanned and reproduced below for an immediate reference:

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The Valsad Sarvajanik Education Society ITA No. 896/Srt/2026 5. Accordingly, the Ld. AR made a limited prayer that the present matter be restored to the file of the Ld. CIT(E) for a fresh adjudication in the light of subsequent grant of registration u/s 12A/12AB. Ld. DR for revenue did not raise any objection against the submission and prayer of Ld. AR for assessee. Faced with above situation, we are inclined to remand this matter to the file of Ld. CIT(E) for a fresh adjudication in the light of the registration granted u/s 12A/12AB and after examining the fulfilment of other statutory conditions, if any, in accordance with law.

6.

Resultantly, this appeal is allowed for statistical purposes.

Order pronounced in open court on 17/07/2026

Sd/- Sd/- (SUCHITRA KAMBLE) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat दिन ांक /Dated : 17/07/2026 *a.k. Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Surat Bench, Surat

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