PURBOTTAR PRADESHIYA MARWARI SANMELAN,GUWAHATI vs. CIT (EXEMPTION), KOLKATA

That on the facts and in the circumstances of the case and in law, the Ld. CIT (Exemption) erred in rejecting the application for renewal of registration filed in Form 10AB, despite the appellant holding a valid subsisting registration granted under section 12AB for the period A.Y. 2022-23 to A.Y. 2026-27. ITA No(s). 1443/KOL/2026 Assessment Year(s) N.A. Purbottar Pradeshiya Marwari Sanmelan.

That the Ld. CIT (Exemption) is not justified in rejecting the application in Form 10AB due to wrong selection of section code for registration under section 12A/12AA.

That the impugned order is bad in law as no adverse finding has been recorded regarding the genuineness of activities of the Society, nor has any finding been given that the activities are not being carried out in accordance with its charitable objects.

That the Ld. CIT (Exemption) erred in rejecting the renewal merely on the alleged absence of old registration under section 12A/12AA prior to 01.04.2021, which was wholly irrelevant at the stage of renewal of an already existing and valid registration under section 12AB.

That the finding of the Ld. CIT (Exemption) that the appellant obtained earlier registration by submitting wrong facts is arbitrary, baseless and unsupported by any cogent material on record, and therefore the same deserves to be quashed.

For that on the facts and circumstances of the case the rejection order dated 25/03/2026 passed by Ld. CIT (Exemption) is without according proper opportunity of hearing to the appellant, therefore the same was passed in violation of Principal of Natural Justice and hence the said order be quashed and/or set aside.

The appellant craves leave to press new, additional grounds of appeal or modify, withdraw any of the above grounds at the time of hearing of the appeal."

Brief facts of the case are that the assessee is a charitable society which filed an application in Form No. 10AB seeking renewal of registration u/s 12A(1)(ac)(ii) of the Act. During the verification proceeding, the Ld. CIT(E) observed that the assessee did not possess the registration u/s 12A/12AA of the Act in the old regime prior to 01.04.2021 it had previously obtained, which was a pre-condition for the registration u/s 12A(1)(ac)(i) of the Act. The Ld. CIT(E) concluded that the earlier registration was obtained by submitting wrong facts and was void ab initio, and thus rejected the renewal application filed in Form 10AB for registration u/s 12A(1)(ac)(ii) of the Act. ITA No(s). 1443/KOL/2026 Assessment Year(s) N.A. Purbottar Pradeshiya Marwari Sanmelan.

Aggrieved with the rejection order of the Ld. CIT(E), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined. The Ld. AR drew our attention to page 3 of the order of CIT(E). It was submitted that the Society was incorporated on 26th May, 1992. Our attention was also drawn to page 91 of the paper book filed which is a copy of the notice issued and also to page 94, vide which the registration u/s 12A was granted from assessment year 2022-23 to 2026-27 vide order dated 30.05.2022. On page 97 of the paper book is the copy of the order for the registration granted to the assessee from the assessment year 2021-22 to AY 2023-24 vide order dated 27th May, 2021 and the same was granted under sub- clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act. This registration dated 27th May, 2021 was a provisional registration. It was stated that no registration was obtained earlier nor was granted. While considering the grant of final approval, the Ld. CIT(E) has mentioned that the assessee had obtained registration u/s 12AB [u/s 12A(1)(ac)(i)] of the Act by submission of wrong facts, therefore, it was an invalid registration which was void ab initio and once the approval u/s 12AB of the Act [u/s 12A(1)(ac)(i)] was invalid, the assessee Trust could not be granted renewal of registration u/s 12A(1)(ac)(ii) of the Act. Therefore, the application of the Society for renewal filed in Form No. 10AB for registration u/s 12A(1)(ac)(ii) of the Act was rejected.

The Bench drew attention of the Ld. DR to the fact that as per sub-section (4) of section 12AB of the Act, the registration granted earlier needs to be cancelled. In this case the approval u/s ITA No(s). 1443/KOL/2026 Assessment Year(s) N.A. Purbottar Pradeshiya Marwari Sanmelan. 12A(1)(ac)(i) of the Act dated 30th May 2022 from AY 2022-23 to AY 2026-27 was subsisting, which was granted subsequent to the provisional registration granted on 27th May 2021. Since this second order dated 30th May 2022 was not specifically cancelled, therefore, there was no justification for rejection of the application of the assessee. It appears that the assessee could not make proper representation before the Ld. CIT(E). It was submitted by the Ld. AR that the application for final approval was from AY 2022-23 to 2026- 27 and therefore, the same ought to have been allowed.

The Ld. DR could not rebut the contention of the assessee.

We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(E). In view of the facts that the assessee was an old Society registered on 26th May, 1992 by the