Chorasi Kadava Patidar Samaj Unnati Mandal Patan Vs CIT (Exemption) (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has set aside orders from the Commissioner of Income Tax (Exemption) [CIT(E)] that had rejected applications for registration under Section 12A and approval under Section 80G of the Income Tax Act, 1961, filed by the Chorasi Kadava Patidar Samaj Unnati Mandal Patan trust.
The tribunal’s decision allows the small trust a fresh opportunity to present its case and furnish necessary documentation, acknowledging the assessee’s submission that it failed to comply with initial notices due to a lack of legal awareness regarding procedural requirements.
The case involved two appeals filed by the assessee trust against separate orders of the CIT(E). The first order, dated November 13, 2024, rejected the trust’s application for registration under Section 12A, a crucial step for entities seeking tax exemption as charitable or religious trusts. The second order, dated November 15, 2024, consequently rejected the application for approval under Section 80G, which permits donors to claim deductions for contributions made to the approved entity. The rejection of the 80G application was not based on a merits assessment but solely on the grounds that Section 12A registration is a mandatory prerequisite for obtaining 80G approval.
