Kukarwada Kelavni Mandal Vs CIT (Exemption) (ITAT Ahmedabad)
Old Trusts Entitled to Regular 12A Registration: ITAT Converts Provisional Registration into Final 5-Year Approval
The Ahmedabad “C” Bench of the Income Tax Appellate Tribunal allowed both appeals of the assessee-trust and granted substantive relief under sections 12A and 80G.
The Tribunal held that an old trust already registered u/s 12A since 1953 could not be treated as a fresh applicant under the post-01.04.2021 regime merely due to procedural confusion and defects in prescribed Forms (Form 10A vs. Form 10AB). The confusion was widespread, acknowledged by CBDT extensions and clarifications, and therefore could not be used to deny substantive rights.
It was ruled that the “provisional registration” wrongly granted in Form 10AC must be treated as regular registration for five years under Form 10AB, effective from 01.04.2021, with no break or adverse gap. The CIT(E) was directed to substitute Form 10AC with Form 10AB retrospectively.
Consequently, since the trust stood validly registered u/s 12A, the rejection of approval u/s 80G solely on that ground was unsustainable. The Tribunal directed grant/continuation of 80G approval as well.
Accordingly, both appeals were allowed in full, affirming that procedural lapses and form-related confusion cannot defeat long-standing charitable registration.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
These are two appeals preferred by the assessee against the separate orders of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘CIT(E)’] dated 26/09/2025 & 18/07/2025.
