Sunrise Education Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The appeal was filed against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, dated 17.01.2026 rejecting the assessee-trust’s application for final/regular registration under Section 12A of the Income Tax Act.
The assessee had initially obtained provisional registration under Section 12A and subsequently applied for regular/final registration. However, while filing the prescribed form, the assessee inadvertently selected Section 12A(1)(ac)(ii) instead of Section 12A(1)(ac)(iii). The CIT(E) rejected the application solely on the ground that his office could not suo motu change the clause under which the application had been filed.
The Tribunal observed that following amendments effective from 01.04.2021, there had been considerable confusion regarding the interpretation of the relevant provisions. It noted that even the CBDT had issued clarifications from time to time and that application deadlines had been extended due to such confusion. The Tribunal further observed that coordinate benches had consistently held that assessees should not be penalized for bona fide mistakes in mentioning the relevant clause in application forms.
The Tribunal found that all relevant facts were before the CIT(E) and that the assessee was otherwise eligible for consideration of final registration. Accordingly, it set aside the impugned order and restored the matter to the CIT(E), directing him to treat the application as one filed under Section 12A(1)(ac)(iii) and decide it afresh on merits. The appeal was allowed for statistical purposes.
