Loading judgment…
Facts
The assessee, an old charitable trust already registered under Section 12AA and 80G, applied for final approval under Section 12A(1)(ac)(iii) and Section 80G(5)(iii) in Form 10AB. The CIT(E) rejected these applications due to the assessee's failure to submit a provisional registration certificate (Form 10AC) and an erroneous application under the wrong sub-section of Section 12A(1)(ac), attributing it to unawareness of new legal provisions.
Held
The Tribunal condoned the delay in filing the appeals. Acknowledging the assessee's genuine unawareness of the new law and the incorrect application under Section 12A(1)(ac)(iii) instead of 12A(1)(ac)(i), the Tribunal remitted both appeals back to the CIT(E) for fresh consideration and to pass a speaking order after reviewing all facts and documents.
Key Issues
Whether the applications for registration under Section 12A(1)(ac)(iii) and 80G(5)(iii) were rightly rejected for procedural lapses and incorrect application, and if the case warrants a remand for fresh consideration.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii), 12A, 80G, 12AA, 12A(1)(ac)(i), 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order : October 27, 2025 ORDER Per Pradip Kumar Choubey, Judicial Member: Both the present appeals have been preferred by the assessee against separate orders both dated 23.03.2012 of the Commissioner of Income Tax (Exemption), Kolkata [hereinafter referred to as ‘CIT(E)’] rejecting the separate applications filed in Form 10AB for final approval as per the provisions of sections 12A(1)(ac)(iii) & 80G(5)(iii) of the Income Tax Act (hereinafter referred to as the ‘Act’) respectively. Since both the appeals relate to the same assessee and arise from the final registration u/s 12A of the Act which is compulsory for getting subsequent registration u/s 80G of the Act which are interconnected in both the appeals and therefore, these appeals were heard together and we are going to dispose of these appeals by passing a consolidated order.
Both the appeals have been filed by the assessee with delays of 21 days. The assessee has filed affidavits for condonation of the delays.
&556/Kol/2025 D L. Agarwala Charitable Trust After considering the reasons cited in the affidavits for condonation of delay, we find that the reasons are valid and consequently, the delays in filing both the appeals are hereby condoned and we proceed to dispose of the appeals on merits. is taken as lead case for narration of facts.
Brief facts of the case are that the assessee being a charitable trust filed an application on 27.06.2024 for registration u/s 12A(1)(ac)(iii) of the Act in Form 10AB. The assessee submitted reply with supporting documents in compliance to the notice but failed to submit the provisional registration certificate in Form 10AC for 12A. As a result of which the application of the assessee has been rejected.
Aggrieved by the said order, the assessee preferred appeal before us. The ld. AR challenges the very impugned order thereby submitting that the assessee is a charitable trust engaged in charitable activities and it was registered as a charitable trust u/s 12AA and 80G vide order dated 23.03.2012. The ld. AR submits that the ld. CIT(E) has cancelled the registration because of non-filing of form 10A for section 12A ignoring the fact that being an old trust, there was no need of applying for provisional registration. Form 10AB has been filed by the assessee on 27.06.2024 which is within the extended period. However, due to unawareness of the new law, the assessee has applied Form 10AB for section 12A(1)(ac)(iii) in place of section 12A(1)(ac)(i) of the Act. The prayer of the ld. AR is that the matter be remitted back to the file of the ld. CIT(E) for fresh consideration with an opportunity to file documentary evidences as required. The ld. AR relied on the decision of the Coordinate Kolkata Bench in the case of Purnima Bhadra Charitable Trust vs. CIT (Exemption), Kolkata in and stated that under similar circumstances, the Tribunal remanded back the issue to the ld. CIT(E) for fresh consideration. 2 D L. Agarwala Charitable Trust 6. The ld. DR did not raise any objection to the above submission of the ld. AR of the assessee.
Upon hearing the counsels of the respective parties and on perusal of the impugned order, we find that the assessee failed to submit the provisional registration certificate in Form 10AC. We also find that the assessee due to unawareness of the new law had applied Form 10AB for section 12A(1)(ac)(iii) instead of applying section 12A(1)(ac)(i) of the Act. Keeping in view the prayer of the assessee and considering the decision referred by the ld. AR, in the interest of justice, we restore the appeal of the assessee to the file of the ld. CIT(E) for fresh consideration and to pass a speaking order in accordance with law after keeping in mind the facts as well as documents filed by the assessee. Accordingly, is allowed for statistical purposes. 8. - Since we have already remitted ITA No.555/Kol/2025 for fresh consideration of the ld. CIT(E) and in this instant appeal, the ld. CIT(E) rejected registration u/s 80G(5) of the Act due to rejection of application u/s 12A, therefore, ITA No.556/Kol/2025 is also allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Kolkata, the 27th October, 2025.