SUNRISE EDUCATION TRUST,SABARKANTHA vs. CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 1049/AHD/2026Status: DisposedITAT Ahmedabad21 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 trust applied for regular registration under Section 12A of the Income Tax Act. They inadvertently ticked clause 12A(1)(ac)(ii) instead of the correct clause (iii) in the application form.

What were the issues?

Whether a bona fide mistake in selecting the correct sub-clause in a Section 12A application warrants rejection of the registration.

Which sections of the Income-tax Act were involved?

Section 12A

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 Jignesh Parikh, A.R, Shri Praveen Verma, CIT. DR
For Respondent: Shri Praveen Verma, CIT. DR
Hearing: 21/05/2026Pronounced: 21/05/2026

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 17.01.2026 rejecting the application of the assessee for final/regular registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

I.T.A. No.1049/Ahd/2026 Sunrise Education Trust vs. CIT(E) - 2 – 2. In this case, the assessee applied for provisional registration u/s. 12A of the Act, which was granted to the assessee-trust. 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 the Ld. CIT(E) is set aside and the matter is restored to the file of the CIT(E).

I.T.A. No.1049/Ahd/2026 Sunrise Education Trust vs. CIT(E) - 3 –

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 21/05/2026

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 21/05/2026 DS, PS TRUE COPY 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,

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

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