ANJUMAN FALAHE DAREN,DANTA vs. INCOME TAX DEPARTMENT, CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 909/AHD/2026Status: DisposedITAT Ahmedabad20 May 20263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that assessees should not be punished for bona fide mistakes, especially given the confusion surrounding recent amendments. The CIT(E) was directed to treat the application under the correct clause and decide it on merits.

What were the facts?

The assessee applied for regular registration under Section 12A(1)(ac) but inadvertently ticked the wrong clause (ii) instead of (iii). The CIT(E) rejected the application solely on this technical ground.

What were the issues?

Whether a registration application can be rejected due to a bona fide error in mentioning the correct sub-clause, despite the assessee being otherwise eligible.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Shri H. V. Doshi, A.R, Shri Praveen Verma, CIT. DR
For Respondent: Shri Praveen Verma, CIT. DR
Pronounced: 20/05/2026

Per Sanjay Garg, Judicial Member:

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 15.09.2025.

ITA No.909/Ahd/2026 [Anjuman Falahe Daren vs. CIT(E)] - 2 – 2. In this case, the assessee applied for provisional registration u/s. 12A(1)(ac)(vi)(A) of the Act, which was granted to the assessee-trust vide order of the Ld. CIT(E) dated 28.10.2022. The assessee, thereafter, applied for regular/final registration to the Ld. CIT(E). However, the assessee inadvertently mentioned/ticked the clause as 12A(1)(ac)(ii) instead of clause (iii) in the prescribed form. Merely, on this ground, the Ld. CIT(E) rejected the application of the assessee observing that his office suo moto cannot change the clause under which the application has to be made.

3.

It is observed here that after the amendment to the relevant provisions w.e.f. 01.04.2021, there were many misunderstandings and confusions about the correct interpretation of the same, not only among the assessees/Income Tax professionals, but also with the Income Tax Authorities. Even the CBDT had to issue circulars and clarifications regarding correct interpretation of the relevant provisions from time to time. Even the time/limitation for making the applications has also been extended from time to time taking note of such confusions in properly understanding relevant provisions. The Co-ordinate Benches of the Tribunal have held time and again that due to the complex provisions and even there being certain discrepancies in prescribed forms for issuing certificates, the assessees should not be punished for any mistake in mentioning the relevant clause in the application form. In the case in hand, the entire facts were before the Ld. CIT(E) and he was very much aware that the case of the assessee was otherwise eligible for granting final/regular registration, however, he found himself helpless only because the assessee had not mentioned correct clause. It has been held time and again that the litigants should not be punished for their bona fide mistakes. The impugned order of

ITA No.909/Ahd/2026 [Anjuman Falahe Daren vs. CIT(E)] - 3 –

the Ld. CIT(E) is set aside and the matter is restored to the file of the CIT(E). It is directed that the Ld. CIT(E) will treat the application moved by the assessee under the relevant clauses 12A(1)(ac)(iii), irrespective of the clause mentioned by the assessee in the application form and will decide the application of the assessee afresh on merits in accordance with law.

4.

With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.

This Order pronounced on 20/05/2026

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 20/05/2026 S. K. SINHA TRUE COPY आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��यथ� / The Respondent. संबंिधत आयकर आयु� / Concerned CIT 3. आयकर आयु�(अपील) / The CIT(A)- 4. 5. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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