Case Law Details
Hasaniya Healthcare Sarvajanik Trust Vs CIT (ITAT Ahmedabad)
Introduction: The case of Hasaniya Healthcare Sarvajanik Trust vs. CIT (ITAT Ahmedabad) involves appeals against the rejection of applications for registration under Section 12AB and approval under Section 80G(5) of the Income Tax Act. The trust, formed to provide medical relief without discrimination, faced challenges due to discrepancies in its applications.
Detailed Analysis: The trust, incorporated on 06.11.2020, operates a medical hospital named “Fatema Hospital” in Himatnagar. While granted provisional registration under Section 12AB, discrepancies arose during the final registration process. The Chartered Accountant’s inadvertent interpretation labeled the medical store as a “business” in Form No.10AB.
The rejection order, dated 29.11.2022, cited inconsistencies between the form and subsequent clarifications. The trust argued a bona fide mistake, emphasizing a lack of opportunity for clarification. The Chartered Accountant, admitting the error, clarified that he mistakenly believed a fresh application was necessary after rejection.
The delay in filing the appeal (129 days) was attributed to this mistake. The trust, seeking condonation, argued for a fair opportunity to address contradictions. The ITAT Ahmedabad, acknowledging the bona fide nature of the mistake, condoned the delay, emphasizing justice.
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