SHRI SHAMLANI POLE TAPAGA CHCHA UPASHRAYA,AHMEDABAD vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

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ITA 2979/AHD/2026Status: DisposedITAT Ahmedabad13 October 2026AY 2025-263 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's appeal should be allowed for statistical purposes. Following the precedent set in Shri Mota Hanuman Dada Seva Trust vs. CIT(E), the Tribunal found the facts to be similar, where the assessee had inadvertently filed the application under the wrong section. The Tribunal reasoned that the CIT(E) rejected the application without confronting the assessee with this defect or allowing an opportunity to explain the inadvertent mistake. Therefore, the Tribunal set aside the impugned order of the CIT(E). The CIT(E) was directed to either treat the application as filed under Section 12A(1)(ac)(ii) or grant the assessee an opportunity to file a rectified application. The CIT(E) was also granted liberty to decide the application on its merits after affording the assessee an opportunity to submit necessary information and documents.

What were the facts?

The assessee, Shri Shamlani Pole Tapaga Chcha Upashraya, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Ahmedabad. The CIT(E) rejected the assessee's application for renewal of registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) observed that the assessee already held a valid registration from AY 2022 to 2026. The CIT(E) held that the application was moved under Section 12A(1)(ac)(iii), which is for converting provisional registration to regular registration, whereas the assessee should have applied under Section 12A(1)(ac)(ii) for renewal. Consequently, the application in Form No. 10AB was deemed non-maintainable.

What were the issues?

1. Whether the Tribunal should set aside the order of the CIT(E) rejecting the assessee's application for renewal of registration on the ground of filing under a wrong provision of law. Assessee's Contention: The assessee argued that the rejection was solely based on a reference to a wrong provision of the Act. The assessee relied on the ITAT Ahmedabad Bench 'A' decision in Shri Mota Hanuman Dada Seva Trust vs. CIT(E) (ITA No. 1371/Ahd/2026). In that case, a similar mistake of filing under Section 12A(1)(ac)(iii) instead of Section 12A(1)(ac)(ii) was considered an inadvertent error, and the assessee was granted an opportunity to explain. Revenue's Contention: The judgment does not record any specific contentions made by the revenue.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac)(iii),Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: DR. BRR Kumar & Shri Tapas Ram Misra

For Appellant: Ms. Kaushani Shah on behalf of Shri Hardik Vora, A.R
For Respondent: Shri Kiran Unavekar, CIT-DR

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before DR. BRR Kumar, Vice President And Shri Tapas Ram Misra, Judicial Member ITA No: 2979/Ahd/2026 Assessment Year: N.A.

Shri Shamlani Pole Tapaga The CIT(Exemption), Chcha Upashraya Ahmedabad Vs 1234 , Unchi Gali, Shamlani Pole, Raipur, Ahmedabad, Ahmedabad-380001, Gujarat PAN: AAATS8588B (Respondent) (Appellant) Assessee by: Ms. Kaushani Shah on behalf of Shri Hardik Vora, A.R. Revenue by: Shri Kiran Unavekar, CIT-DR Date of hearing : 12-10-2026 Date of pronouncement : 13-10-2026 आदेश/ORDER PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The present appeal has been filed by the Assessee against the order passed by the Commissioner of Income Tax (Exemption), Ahmedabad rejecting the assessee’s application for renewal under section 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

The Ld. CIT(E) has observed that the assessee was already holding a valid order of registration dated 24-09-2021 valid for the period from Asst. Year 2022 to 2026. The Ld. CIT(E) held that this application was moved u/s 12A(1)(ac)(iii) which is meant for converting a provisional registration into a regular registration. The assessee, it was held by the CIT(E), was required to make an application u/s 12A(1)(ac)(ii) seeking renewal of registration and for

I.T.A No. 2979/Ahd/2026 Shri Shamlani Pole Tapaga Chcha Upashraya vs. CIT(E)

this reason, he held that the application in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act was to be rejected as non-maintainable.

3.

The assessee is aggrieved by the rejection of its application merely on account of reference to a wrong provision of the Act. The assessee has filed before us and relied upon a decision of ITAT Ahmedabad Bench ‘A’ in the case of Shri Mota Hanuman Dada Seva Trust vs. CIT(E) ITA No. 1371/Ahd/2026. In that case, the application was intended to be filed u/s 12A(1)(ac)(iii) but by mistake filed u/s 12A(1)(ac)(ii) of the Act. In that case, the assessee like in the present case, was not confronted with this defect in the application and was not able to explain before the Ld. CIT(E) that the mistake was an inadvertent mistake. The Co-ordinate Bench, on these facts, held it to be proper to grant another opportunity to the assessee to make out a case for renewal of registration in terms of Section 12A(1)(ac)(iii) of the Act

4.

Following the precedent of the Co-ordinate Bench and in view of the similarity of facts, we deem it proper to set-aside the impugned order passed by the CIT(E). The Ld. CIT(E) is directed either to treat the application filed by the assessee as one filed u/s 12A(1)(ac)(ii) of the Act or grant opportunity to the assessee to file a rectified application. The Ld. CIT(E) would be at liberty to decide upon the merits of the application as per law after affording the assessee an opportunity to submit all the necessary information and documents in support of its application.

5.

In terms of the aforesaid, the appeal of the assessee is allowed for statistical purposes. This Order is pronounced on 13/10/2026 Sd/- Sd/- (DR. BRR KUMAR) (TAPAS RAM MISRA) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad: True Copy Dated 13/10/2026 2

I.T.A No. 2979/Ahd/2026 Shri Shamlani Pole Tapaga Chcha Upashraya vs. CIT(E)

Rajesh आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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