IILM UNIVERSITY,GREATER NOIDA vs. DEPUTY COMMISSOINER OF INCOME TAX, NOIDA

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ITA 6696/DEL/2025Status: DisposedITAT Delhi29 April 2026AY 2026-273 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had previously been granted provisional registration. Therefore, the CIT(Exemption)'s order was set aside, and the case was remanded to consider the application on its merits after allowing the assessee to amend the incorrect clause.

What were the facts?

The assessee, IILM University, applied for registration under Section 12AB of the Income Tax Act. The CIT(Exemption) rejected the application as non-maintainable due to the assessee citing the incorrect sub-clause of Section 12A(1)(ac) in their application.

What were the issues?

Whether a technical error in mentioning the incorrect sub-clause of Section 12A(1)(ac) in an application for registration under Section 12AB warrants outright rejection, or if the application should be considered on merits.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12A(1)(ac),Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: Sh. Challa Nagendra Prasad & Sh. Renu Jauhri

Hearing: 13.04.2026Pronounced: 29.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI Before Sh. Challa Nagendra Prasad, Judicial Member & Sh. Renu Jauhri, Accountant Member ITA No. 6696/Del/2025 : Asstt. Year : 2026-27 IILM University, Vs DCIT, Plot No. 16-18, Knowledge Park-II, Circle-5(1)(1), Greater Noida, U.P.-201306 Noida, Uttar Pradesh (APPELLANT) (RESPONDENT) PAN No. AAAJI0610C Assessee by : Mohd. Athar Saifi, CA Revenue by : Sh. Amit Jain, CIT-DR Date of Hearing: 13.04.2026 Date of Pronouncement: 29.04.2026 ORDER Per Renu Jauhri, Accountant Member: The above captioned appeal is preferred by the assessee against the order dated 20.10.2025, passed by CIT(Exemption), Lucknow, u/s 12AB(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2026-27.

2.

The assessees has raised following grounds of appeal: “1. That on the (acts and circumstances of the case and in law, the impugned order dated 20.08.2025 in Form I0AD passed by the Commissioner of Income Tax Exemption, Lucknow [“CT1(E)”] rejecting/ dismissing the application for registration under section I2AB of the Income Tax Act, 1961 [“the Act”] is illegal and bad-in- law. 2. That on the facts and circumstances of the case and in law, the CIT(E) erred in rejecting the application filed by the appellant for renewal of registration under section I2AB by treating it as non-maintainable on the

2 ITA No. 6696/Del/2025 IILM University sole technical ground that the application was filed under sub-clause (ii) which is not the correct provision [correct being sub-clause (iii)] of section 12A(1)(ac) of the Act. 2.1 That the CIT(E) erred on facts and in law in not appreciating that merely a technical/ procedural defect of mentioning incorrect sub-clause of section I2A(1)(ac) in the application for renewal cannot result in denial of substantive claim for registration, especially when the application was otherwise complete and supported by the requisite documents. 2.2. That the CIT(E) erred on facts and in law in dismissing the application without appreciating that there is not dispute that the - (i) appellant University is imparting ‘education’ covered in definition of ‘charitable purposes' under section 2(15) of the Act: (ii) the activities of the appellant are genuine; and (iii) appellant is compliant with all (he applicable laws. 2.3. That the CIT(E) erred on facts and in law in dismissing the application for renewal as not maintainable without any prior show cause notice confronting the appellant with proposal for such dismissal (letter dated 04.07.2025 referred in impugned order was never served on the appellant), which is in violation of section 12AB of the Act and principles of natural justice.” 3. Brief facts are that the assessee is a registered trust, and had applied for registration u/s 12AB of the Act by filing an application in Form 10AB on 07.02.2025. Ld. CIT(E) noted that the application was filed u/s 12A(1)(ac)(ii) of the Act which is applicable in cases where the applicant is already registered u/s 12AB(1)(a) for a period of five years and whose period of registration is due to expire. However, the assessee did not possess any regular or provisional registration u/s 12A of the Act. He accordingly held the application to be non-maintainable on technical grounds. Hence, the application was rejected vide

3 ITA No. 6696/Del/2025 IILM University order dated 20.08.2025. Aggrieved the assessee is in appeal before the Tribunal.

4.

We have heard the rival submissions and perused the material on record. We note that the assessee has been granted provisional registration u/s 12A(1)(ac)(vi) in Form 10AC by the CPC dated 03.08.2022 for the period A.Y. 2023-24 to A.Y. 2025-26. We, therefore, set aside the order of ld. CIT(E) and direct him to consider the application on merits under relevant provisions of the Act after allowing the assessee to amend the error in mentioning the relevant clause of section 12A(1), if any. Needless to add, the assessee shall be given due opportunity of being heard before passing the final order on merits.

5.

In the result, appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 29/04/2026. Sd/- Sd/- (Challa Nagendra Prasad) (Renu Jauhri) Judicial Member Accountant Member Dated: 29/04/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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