MAA Sharda Kothari Foundation Vs CIT (ITAT Ahmedabad)
In a recent order, the Income Tax Appellate Tribunal (ITAT) in Ahmedabad has remanded a case involving the MAA Sharda Kothari Foundation back to the Commissioner of Income Tax (Exemption) [CIT(Exemption)] for fresh adjudication. The tribunal’s decision came after it set aside an order that had rejected the foundation’s application for regular registration, deeming it both “premature” and “non-maintainable.”
The appeal, filed by the assessee-trust, challenged the CIT(Exemption)’s order dated December 5, 2023, which had denied the foundation’s application in Form 10AB for regular registration under Section 12AB(1)(b) of the Income-tax Act, 1961. The case provides significant clarity on the procedural requirements for trusts seeking to convert their provisional registration to a regular one under the Act’s amended provisions.
The proceedings at the ITAT began with a procedural matter: a considerable delay of 319 days in filing the appeal. The foundation’s trustee submitted a detailed affidavit explaining that the delay was not deliberate but was caused by a series of technical issues with the income tax e-filing portal. The affidavit stated that after the rejection, the trust, having commenced its charitable activities in March 2024, attempted to file a fresh application. However, persistent technical errors prevented the submission of the prescribed forms. The ITAT, noting the reasonable grounds and the absence of any malicious intent, and with no objection from the Departmental Representative, condoned the delay in the interest of substantial justice.
