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Facts
The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT(Exemption) because the assessee had filed Form 10AB instead of Form 10A and had not produced a provisional registration order. The assessee contended that this was merely a technical error as they did not have provisional registration and should have filed Form 10A.
Held
The Tribunal, following a similar precedent, set aside the CIT(E)'s order and remitted the matter for fresh adjudication. It directed the assessee to furnish the required details and file the application in the correct form (Form 10A).
Key Issues
Whether the rejection of an application for registration under Section 12AB of the Income Tax Act is valid solely due to the assessee mistakenly filing Form 10AB instead of Form 10A, which is deemed a technical breach.
Sections Cited
12AB, 12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Exemption), Chennai dated 17.12.2024, rejecting assessee’s application for registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’).
The CIT(Exemption) rejected assessee’s application dated 29.06.2024 in Form 10AB seeking registration solely for the reason assessee had not produced the order of provisional registration. The relevant finding of the CIT(E) reads as follows:-
“3.1 As stated above, the applicant has filed application in Form No. 10AB dated 29.06.2024 under sub clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act.
3.2 The applicant has not furnished the details called for vide Show Cause Notice dated 11.12.2024. Rule 17A of the Income Tax Rules, 1962, prescribes the list of documents which are mandatorily required to be submitted by the applicant. It is the responsibility of the applicant to furnish each and every details called for. In order to grant registration under sub clause (iii) of clause (ac) of sub- section (1) of section 12A of the Act, "Order for provisional Registration" is essential to process the application filed. The applicant has failed furnish "Order for Provisional Registration" u/s.12A in Form 10AC. Since the applicant failed to furnish the required detail(s) as mandated by Rule 17A of the Income Tax Rules, 1962, and 12AB of the Act, the application filed by the applicant in Form No.10AB on 29.06.2024 cannot be processed as per the provisions of section 12A of the Act. Hence, the applicant is not eligible for getting regular registration u/s.12AB of the Act.
3.3 In view of the above, the application in Form No.10AB filed by the applicant under sub clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act is not maintainable as such deserves for rejection.
Under the facts and circumstances of the case, its application dated 29.06.2024 filed in Form No.10AB under sub clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act, seeking registration u/s.12AB of the Act is not maintainable for the reasons stated in para 3.1 to 3.3 of this order and hence the application is rejected.”
Aggrieved by the order of the CIT(E), the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that assessee does not have a provisional registration and it ought to have filed the application in Form 10A but by mistake had filed in Form 10AB. It was submitted that it was merely a technical breach which could be cured by allowing the assessee to file the application Form 10AB along with other details. In support of his contention, the Ld.AR relied on the order of the Chennai Bench of the Tribunal in the case of LTCL Palaniappa Charities Trust vs. CIT(E) in & 576/CHNY/2023 & Arudhara Charitable Trust in & 578/CHNY/2023 (order dated 26.12.2023).
4. The Ld.DR supported the order of the CIT(E).
The solitary issue in this appeal is with regard to the order of CIT(E) rejecting the application filed by the assessee for registration u/s.12AB of the Act. The Ld.AR had candidly admitted that assessee trust by an inadvertent error had filed Form 10AB instead of 10A. It was submitted assessee trust should be allowed to file Form 10A along with the relevant details since it is not having a provisional registration. On identical facts, the Chennai Bench of the Tribunal in the case of LTCL Palaniappa Charities Trust & Arudhara Charitable Trust, supra, had set aside the case to the files of the CIT(E) for fresh examination of the matter allowing the assessee to file application in Form 10A along with other required details. The relevant finding of the Chennai Bench of the Tribunal read as follows:- “8. We noted that the ld. CIT(E) simpliciter rejected the assessee’s application for registration only on the issue that assessee has not furnished form No.10AC/10AD and the present application u/s.10AB of the Act was filed u/s.12A(1) (ac)(iv) of the Act seeking registration is not maintainable and hence rejected. We are of the view that assessee has not 10A and filed form no. 10AB of the Act which is merely a technical breach which can be cured by allowing the assessee to file application in form 10A of the Act alongwith other details. Hence, we set aside the appeal and the matter is remitted back to the file of the ld. CIT (E) who will allow assessee to file application in form No. 10A along with other required details and the ld. CIT (E) will examine entire aspect relating to registration u/s.12AB of the Act as well as u/s.80G of the Act and then will decide the appeal accordingly. In terms of the above, the appeal of the assessee in ITA No. No.577/Chny/2023 is allowed for statistical purpose.”
In light of the above order of the Chennai Bench of the Tribunal which is identical to the facts of the instant case, we set aside the order of CIT(E) and restore the matter to him for fresh adjudication. The assessee is directed to furnish the required details and file application in correct form. With the above directions, the case is restored to the files of the CIT(E). It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 12th June, 2025 at Chennai.