Sauhard Vs CIT (ITAT Ahmedabad)
In the case of Sauhard Vs. CIT (Exemption), the Income Tax Appellate Tribunal (ITAT) Ahmedabad directed the Commissioner of Income Tax (Exemption) to reconsider the Trust’s application for permanent registration under Section 80G of the Income Tax Act, 1961. The Trust, which operates as a charitable organization, had been granted provisional registration but faced rejection for permanent registration due to clerical errors in the application. These errors mistakenly categorized some of the Trust’s activities as religious, despite them being charitable in nature. The rejection, made in March 2023, was issued without giving the Trust an opportunity to clarify the discrepancies identified by the CIT.
The appeal was filed by the Trust after a delay of 193 days, which was explained by the Trust as being due to a misunderstanding about the reapplication process. The ITAT found the reasons for the delay to be reasonable and condoned the delay, allowing the appeal to proceed. In its ruling, the ITAT referred to similar cases and emphasized that a clerical error should not hinder the charitable activities of the Trust. It also noted that the CIT’s rejection was based on a technicality, and as the Trust’s activities were genuinely charitable, the matter should be evaluated on its merits. The appeal was set aside with instructions for the CIT to pass an order on the merits after allowing the Trust to correct the application.
