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Facts
The assessee, P Ganapathi Educational & Charitable Trust, applied for registration under Section 12AB of the Income Tax Act by filing Form 10AB. The CIT(E) rejected the application after the assessee failed to provide mandatorily required documents within the extended time. The assessee contended that Form 10AB was filed mistakenly instead of Form 10A.
Held
Following judicial precedent, the Tribunal remanded the case back to the CIT(E). The CIT(E) is instructed to reconsider the assessee's contention regarding the incorrect form submission (Form 10AB instead of Form 10A) and to pass a fresh order in accordance with law.
Key Issues
Whether the filing of a wrong form (Form 10AB instead of Form 10A) should lead to the rejection of registration under Section 12AB, and if the CIT(E) should reconsider the application on its merits.
Sections Cited
12AB, 12A(1)(ac)(iii), 12A, 80G
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Before: Shri S.S. Viswanethra Ravi & Ms. S. Padmavathy
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 16.12.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai seeking registration under section 12AB of the Income Tax Act, 1961 [“Act” in short].
In the grounds of appeal, the assessee challenged in rejection of application filed in Form 10AB seeking registration under section 12AB of the Act.
We note that the assessee filed online application on 28.06.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act. In response to the show cause notice seeking various mandatorily requirement documents as mentioned in para 2.1 of the impugned order, vide its reply dated 03.12.2024, the assessee sought for time till 10.12.2024. Since the assessee could not furnish the details, vide order dated 16.12.2024, the ld. CIT(E), rejected the application filed on 28.06.2024 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act by stating the reasons in para 4.1 of the impugned order.
The ld. AR Shri S. Ganapathy, CA, by filing various details such as registration under section 12A of the Act, approval under section 80G of the Act, trust deed, etc., submits that the assessee, by mistake, wrongly filed Application in Form 10AB instead of Form 10A and he argued that mere filing of wrong form does not disentitle registration under section 12AB of the Act. He placed on record consolidated order of this Tribunal in the case of LTCL Palaniappa Charities Turst v. CIT(E) in & 575/Chny/2023 including Arudhra Charitable Trust v. CIT(E) in & 578/Chny/2023 & Others vide order dated 26.12.2023 and prayed to remand the matter to the file of the ld. CIT(E) for his fresh consideration.
The ld. DR Ms. E. Pavuna Sundari, CIT relied on the order passed by the ld. CIT(E).
We have heard both the parties and perused the material available on record. Considering the submissions of the ld. AR and the ld. DR and in the interest of justice and following the order of this Tribunal in the case of Arudhra Charitable Trust v. CIT(E) (supra), we deem it proper to remand the matter to the file of the ld. CIT(E) to consider the contention of the assessee in filing correct Form No. 10A and pass order in accordance with law.