PARMARTH FOUNDATION BHAVNAGAR,BHAVNAGAR vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 1457/AHD/2026Status: DisposedITAT Ahmedabad21 May 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(E) and directed it to re-adjudicate the 80G application after first deciding the issue of 12A registration. This was done to allow the assessee an opportunity to obtain the necessary 12A registration.

What were the facts?

The assessee's application for approval under Section 80G(5)(iv)(B) was rejected by the CIT(E) because the trust did not have a valid registration under Section 12A/12AB. The issue of 12A registration was pending before the CIT(E) based on a previous ITAT order.

What were the issues?

Whether the CIT(E) erred in rejecting the 80G approval application without considering the pending 12A registration issue. The prerequisite of 12A registration for 80G approval.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: MS SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Manoj Kumar P Gohil, AR
For Respondent: Shri Shramdeep Sinha, CIT-DR
Hearing: 20.05.2026Pronounced: 21.05.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’], dated 18.12.205 in the proceeding u/s 80G(5)(iv)(B) of the Income Tax Act [hereinafter referred as “the Act”].

2.

There was delay of 55 days in filing of this appeal. The assessee had filed a condonation application. It has been explained by Shri Sanjay Arvindbhai Pandya, the trustee of the assessee trust, that the accountant of the trust was changed on 01.02.2026 and the new accountant was not aware of the rejection of 80G application. When the new accountant came

ITA No. 1457/Ahd/2026 Parmarth Foundation Bhavnagar Vs. CIT(E) 2 to know about the rejection of 80G application of the Ld. CIT(E), he informed the trustee and the consultant of the trust. Thereafter, the status had checked by the trustee and on finding that the application was rejected, the present appeal was filed, and in the process there was delay of 55 days. It is submitted that the delay was not intentional. Considering the explanation of the assessee, the delay in filing of this application is condoned.

3.

The brief facts of the case are that the assessee had filed an application for approval of the Trust u/s. 80G(5)(iv)(B) of the Act filed in form No. 10AB. The Ld. CIT(E) had rejected the approval u/s 80G(5)(iv)(B) because the trust did not have a valid registration u/s. 12A/12AB, which is mandatory condition for getting approval u/s. 80G(5)(iv)(B) of the Act. Therefore, the Ld. CIT(E) had rejected the application of the assessee.

4.

Aggrieved with order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal.

1.

Ld. CIT(E) has erred in law and on facts of the case in passing the impugned order without giving proper attention on documents submitted/available with Income Tax Portal like ITRs and Forms. 2. Ld. CIT(E) has erred in law and on facts of the case in rejecting the registration application of the Appellant u/s. 80G of the Act. 3. The appellant craves leave to add, amend, alter, or withdraw any of the grounds of appeal at or before the time of hearing.

5.

Shri Manoj Kumar P Gohil, the Ld. AR of the assessee submitted that the Ld. CIT(E) had rejected the application on the ground that

ITA No. 1457/Ahd/2026 Parmarth Foundation Bhavnagar Vs. CIT(E) 3 assessee did not have valid registration u/s. 12A/12AB of the Act, without taking into account the substantial details and documents available with the Department. He explained that the Ld. ITAT vide order in ITA No. 2097/Ahd/2025 dated 05/12/2025, has set aside the matter regarding grant of registration u/s. 12A of the Act, to the file of Ld. CIT(E) for fresh adjudication. He, therefore, requested that the present matter may also be set aside to the file of the Ld. CIT(E) for deciding the matter afresh.

6.

Shri Shramdeep Sinha, the Ld. CIT-DR, had no objection if the matter was set aside to Ld. CIT(E) for allowing another opportunity to the assessee.

7.

We have considered the request of the assessee. The application of the assessee was rejected only for the reason that the assessee did not have any valid order for registration u/s. 12A/12AB of the Act, which is mandatory condition for getting 80G approval and the assessee was unable to re-new the earlier valid registration available with him. The Ld. CIT(E) had also relied upon the order of the Gujarat High Court in the case of CIT(Exemption) Vs. Shree Tapeshwar Hanumanji Bajrang Charity Trust [122 taxmann.com 98], where it has been held that the registration u/s. 12A of the Act is a pre-requisite for grant of approval u/s. 80G of the Act. It is found that the issue of registration u/s. 12A of the Act, was set aside to the file of Ld. CIT(E) vide the order of this Tribunal in ITA No. 2097/Ahd/2025 dated 05/12/2025. We, therefore, deem it is proper to set aside the present matter to the file of Ld. CIT(E) as well. The Ld. CIT(E) is directed to re-adjudicate the application of the assessee for approval

ITA No. 1457/Ahd/2026 Parmarth Foundation Bhavnagar Vs. CIT(E)

u/s. 80G(5) of the Act, after first deciding the issue of registration u/s. 12A of the Act.

8.

In the result, the appeal of the assesse is allowed for statistical purpose.

Order pronounced in the Court on 21/05/2026 at Ahmedabad.

Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 21st May, 2026 (True Copy) Neelesh,Sr. PS आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार

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

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