DULEEP MATTHAI NATURE CONERVATION FOUNDATION,ANAND vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 206/AHD/2026Status: DisposedITAT Ahmedabad02 November 20264 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay of 28 days in filing the appeal, citing the Supreme Court judgment in Collector, Land Acquisition, Anantnag& Another v. Mst. Katiji& Others. Regarding the period of registration, the Tribunal held that the assessee is entitled to the benefit of registration with effect from its date of incorporation as a Section 8 company, i.e., 17/03/2025. The Tribunal noted that the Revenue did not dispute the assessee's incorporation as a Section 8 company from 17/03/2025 and its bonafides. Since the CIT(E) had already granted registration from 01/04/2025 for AY 2025-2026, the Tribunal found no reason to adopt a different approach for the preceding period from 17/03/2025 to 31/03/2025. The CIT(E) was directed accordingly. Grounds No. 1 and 2 raised by the assessee were allowed. Grounds No. 3 to 8 were dismissed as argumentative. The ratio decidendi is that a Section 8 company, being a successor to a registered charitable trust, should be granted registration under Section 12AB from its date of incorporation if its bonafides are not in doubt, even if there was a delay in filing the application, provided the delay is condoned.

What were the facts?

The assessee, Duleep Matthai Nature Conservation Foundation, is an appellant challenging an order dated 31/10/2025 passed by the Commissioner of Income-Tax (Exemption), Ahmedabad (CIT(E)). The CIT(E) rejected the assessee's application in Form No. 10AB for registration under Section 12AB(1)(b) of the Income Tax Act, 1961. The assessee was initially a trust registered under Section 12A since June 2007. It was later registered as a Section 8 company under the Companies Act, 2013, effective from 17/03/2025. The assessee filed the application for registration under Section 12AB on 14/05/2025, with a delay of 43 days, and also sought condonation of this delay. The CIT(E) granted registration from 01/04/2025 to 2030-2031, effectively denying the benefit of registration for the period 17/03/2025 to 31/03/2025, which falls in the previous year relevant to Assessment Year 2025-2026.

What were the issues?

1. Whether the Tribunal had jurisdiction to condone the delay in filing the appeal, and if so, whether the delay of 28 days was condonable on the grounds of reasonable cause, as per the judgment in Collector, Land Acquisition, Anantnag& Another v. Mst. Katiji& Others [1987 (2) SCR 387]? (Question of law and fact) 2. Whether the Learned CIT(E) erred in not granting registration under Section 12AB(1)(b) of the Income Tax Act, 1961, with effect from the date of incorporation of the assessee as a Section 8 company (17/03/2025), thereby denying the benefit of registration for the period 17/03/2025 to 31/03/2025, which falls in the previous year relevant to Assessment Year 2025-2026? (Question of mixed law and fact, turning on Section 12AB(1)(b)) Assessee's Contentions: The assessee argued that the CIT(E) erred in not appreciating that the assessee was initially a trust with valid registration since June 2007 and was subsequently incorporated as a Section 8 company on 17/03/2025. The denial of registration for the 14 days from 17/03/2025 to 31/03/2025 was incorrect. Revenue's Contentions: The judgment records no specific contentions from the Revenue regarding the period of registration, other than implicitly agreeing with the CIT(E)'s order.

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, D” BENCH, AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL "D” BENCH, AHMEDABAD DR. B.R.R. KUMAR VICE PRESIDENT SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.206/AHD/2026 Duleep Matthai Nature Conservation Foundation Kalrav, Opp. Sabarmati Vas, Near VVN Hospital, Nana Bazar, Vallabh Vidyanagar, …………. Appellant Anand-388120, Gujarat [PAN No.AALCD5162E] Vs Commissioner of Income Tax (Exemption), Ahmedabad Room No 609, Aaykar Bahwan (Vejalpur), Nr. Sachin Tower, 100ft Ring Road, Anand Nagar Prahalad Nagar Road, Ahmedabad-380015, Gujarat …………. Respondent Appearance For the Appellant/Assessee : Shri Ninad Patade For the Respondent/Department : Shri Aroon Kumar CIT-DR Date Conclusion of hearing : 30.09.2026 Pronouncement of order : 02.11.2026

O R D E R Per Rahul Chaudhary, Judicial Member: 1. The present appeal Assessee has challenged the Order, dated 31/10/2025, passed by Learned Commissioner of Income-Tax (Exemption), Ahmedabad [hereinafter referred to as the ‘CIT(E)’], whereby the application filed by the Assessee in Form No.10AB under Section 12AB(1)(b) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] was rejected.

2.

There is a delay of 28 days in filing the preset appeal. We have taken into consideration the explanation offered by the Assessee for delay in filing the present appeal. We are of the view that the Assessee was prevented by reasonable cause from filing the present appeal within the

ITA No.206/AHD/2026

prescribed time. Accordingly, keeping in view the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag& Another v. Mst. Katiji& Others [1987 (2) SCR 387], we condone the delay in filing the present appeal and proceed to adjudicate the grounds raised by the Assessee.

3.

The Assessee has raised 8 Grounds of appeal challenging the rejection of application filed under Section 12AB(1)(b) of the Income Tax Act, 1961 by the Learned CIT(E).

4.

We have heard the rival submissions and have perused the material on record.

5.

The limited grievance of the Assessee is that the Assessee has been granted registration from 01/04/2025. The contention of the Assessee is the Learned CIT(E) had erred in not appreciating the fact that the Assessee was initially incorporated as a trust and held valid registration under Section 12A of the Act since June, 2007. Later, the trust was registered as a Section 8 company under the provisions of Companies Act, 2013 with effect from 17/03/2025. The Assessee filed application for registration under Section 12A of the Act on 14/05/2025 after a delay of 43 days and moved application seeking condonation of delay. The Learned CIT(E) disposed the application vide impugned Order, dated 31/10/2025, granting registration for Assessment Year 2026- 2027 to 2030-2031. The grievance of the Assessee is that by doing so the Learned CIT(E) has denied benefit of registration for a period of 14 days [17/03/2025 to 31/03/2025] falling in previous year relevant to the Assessment Year 2025-2026.

6.

It is not disputed by the Revenue that the Assessee was constituted as a Section 8 company with effect from 17/03/2025, and is, in effect, successor of Duleep Matthai Nature Conservation Trust (which was registered as a charitable trust operational since June, 2007). There is

ITA No.206/AHD/2026

no doubt as to the bonafides of the activities carried out by the Assessee. The Assessee had filed application for registration on 14/05/2025. We note that the Learned CIT(E) had, partly allowed application for condonation of delay by granting registration to the Assessee with effect from 01/04/2025 for the Assessment Year 2025- 2026. Therefore, we find no reason for adopting a different approach for the balance period commencing from 17/03/2025 to 31/03/2025. Therefore, accepting the contention of the Assessee, we hold that the Assessee is entitled to benefit of registration with effect from date of incorporation (i.e., 17/03/2025). The Learned CIT(E) is directed accordingly. In terms of aforesaid Ground No. 1 and 2 raised by the Assessee are allowed. Ground No. 3 to 8 do not call for separate adjudication as the same argumentative in nature and are, therefore, dismissed.

7.

In result, the present appeal preferred by the Assessee is partly allowed.

The order is pronounced on 02.11.2026

Sd/- Sd/- (Dr. B.R.R. Kumar) (Rahul Chaudhary) Vice President Judicial Member

िदनांक Dated :02.11.2026 अहमदाबाद Ahmedabad; True Copy H.C. PS

ITA No.206/AHD/2026 Digitally signed by JEETENDRA JEETENDRA आदेशक��ितिलिपअ�ेिषत/Copy of the Order forwarded to : DEVENDRABHAI UPADHYAY DN: c=IN, o=PERSONAL, title=6087, 2.5.4.20=7e5568a89b633f174b28a8 DEVENDRA 1. अपीलाथ�/ The Appellant 0f5e63c638da40b7313fb47ebaefda 841cf59d1703, postalCode=380059, 2. ��यथ�/ The Respondent. st=Gujarat, BHAI 3. संबंिधतआयकरआयु�/ Concerned CIT serialNumber=816dc56e896211a1a 21ccc4abc94ddc94458f4a1b37be8 4. आयकरआयु�(अपील) / The CIT(A) e1854e9399295106d4, UPADHYAY cn=JEETENDRA DEVENDRABHAI 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, UPADHYAY 6. Date: 2026.11.06 17:36:23 +05'30' गाड�फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad

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