ITAT Ahmedabad Directs Regular Registration to Old Trust, Overturns CIT(E)’s Rejection

Confusion in Post-2021 Regime Cannot Prejudice Long-Registered Trusts

The Ahmedabad “C” Bench of the Income Tax Appellate Tribunal has allowed two appeals filed by Shree Kukarwada Kelavni Mandal, an old charitable trust, setting aside orders passed by the Commissioner of Income Tax (Exemption), Ahmedabad. The assessee trust, registered under Section 12A since 1953, was required to apply afresh under the amended regime. Due to widespread confusion regarding the correct statutory form and the nature of registration, whether provisional or regular, the trust filed its application in Form 10A instead of Form 10AB. The CIT(E), instead of rectifying the procedural lapse, treated the trust as a fresh applicant and granted only provisional registration. The subsequent application seeking regular registration was rejected as time barred.

Provisional Registration to Be Treated as Regular for Five Years

Allowing the appeal, the Tribunal observed that the trust was always entitled to regular registration for five years and ought not to have been subjected to provisional registration. Taking note of CBDT clarifications and consistent Tribunal views, it directed that the provisional certificate issued in Form 10AC be substituted with a regular registration in Form 10AB with effect from 1 April 2021. This ensured that there would be no break or adverse consequence in the trust’s registration status. On the same reasoning, the Tribunal also allowed the appeal relating to approval under Section 80G, holding that once Section 12A registration stands restored, denial of 80G approval on that basis cannot survive. Both appeals were accordingly allowed by order pronounced on 30 January 2026.