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Facts
The assessee applied for renewal of registration under Section 12A(1)(ac)(ii) of the Income Tax Act, 1961, by filing Form 10AB. The Ld. CIT (Exemption) cancelled the application as non-maintainable because the assessee had quoted an incorrect section code (sub-clause (ii) instead of sub-clause (iii)).
Held
The Tribunal set aside the orders of the Ld. CIT (Exemption), noting that the denial was based solely on a wrong section code. The matter was remanded to the Ld. CIT (Exemption) to provide the assessee an opportunity to correct the section code, be heard, and allow for the merits of the application and genuineness of charitable activities to be examined afresh.
Key Issues
Whether an application for renewal of registration under the Income Tax Act, 1961, can be rejected merely due to the assessee quoting a wrong sub-section code in Form 10AB, or if the assessee should be given an opportunity to rectify such a mistake and for the application to be considered on its merits.
Sections Cited
12A(1)(ac)(ii), 12A(1)(ac)(iii), 12AB(1)(b)(ii), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
Both these appeals filed by the assessee are against the separate orders of the Ld. Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 12AB(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 05.06.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. On the facts and in the circumstances of the ease and in law, the order of the Ld. CIT (Exemption) Kolkata, disallowed the petition for renewal of registration as the assessee has erred in quoting relevant section in the Form 10AB. The assessee quoted 12A sub clause (ii) of clause (ac) of subsection (1) of the Act instead of sub clause (iii) of clause (ac) of sub section (1) of section 12A. I.T.A. Nos.: 1457 & 1458/KOL/2025 Assessment Years: 2023-24 & 2024-25 Mahishadal Vidysagar Social Welfare Society.
On the facts and in the circumstances of the ease CIT (EXM) did not acknowledge the fact that there was no deliberate intention on the part of the assessee in filing the form 10AB for renewal of the registration under the section 12A under wrong sub clause.
On the facts and circumstances of the ease CIT (EXM) failed to realise that assessee should not suffer due to no fault of its own, or because of a mere mistake /oversight on the part of its office staff.
On the facts and circumstances of the ease the assessee shall be greatly inconvenienced as the activities of the Society shall be affected for change of status, if there is a gap in the assessment year which shall affect the continuity of the Society as a registered entity under the Income Tax Act 1961. 5. Assessee may be allowed to take further ground at the time of hearing.”
Brief facts of the case are that the assessee had filed an application dated 25.11.2024 for registration u/s 12A(1)(ac)(ii) of the Act in Form No. 10AB. This application was found to be prima-facie non- maintainable and accordingly, vide letter dated 03.04.2025, certain clarifications were sought from the assessee by the Ld. CIT (Exemption). In response, the assessee submitted its reply dated 10.04.2025. On perusal of the submissions made by the assessee, the Ld. CIT (Exemption) found that the assessee had selected the wrong section code while applying on Form No. 10AB and accordingly cancelled/dropped the application as non-maintainable.
Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.
We have heard the rival contentions and have also gone through the facts of the case. During the course of the appeal, though the assessee sought adjournment, however, the Bench was of the view that the Ld. CIT (Exemption) had denied the claim of exemption u/s 12AB of the Act merely on account of selecting wrong section code applicable for I.T.A. Nos.: 1457 & 1458/KOL/2025 Assessment Years: 2023-24 & 2024-25 Mahishadal Vidysagar Social Welfare Society. registration of the trust against the provisional registration while the requirements of the trust existing for charitable and carrying out charitable activities were primarily to be examined. Therefore, in the interest of justice, it was considered imperative that the assessee may be granted another opportunity to file its submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of approval. Hence, both the orders of the Ld. CIT (Exemption) are set aside and the matter is remanded to him for deciding both the applications afresh after granting an opportunity of being heard to the assessee, allowing an opportunity to the assessee to correct the section code and seeking the reply from the assessee in respect of the queries raised and thereafter consider the application in accordance with law. For statistical purposes, the grounds of appeal are partly allowed.
In the result, both the appeals filed by the assessee are partly allowed for statistical purposes. Order pronounced in the open Court on 29th September, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.09.2025 Bidhan (Sr. P.S.) I.T.A. Nos.: 1457 & 1458/KOL/2025 Assessment Years: 2023-24 & 2024-25 Mahishadal Vidysagar Social Welfare Society. Copy of the order forwarded to:
Mahishadal Vidysagar Social Welfare Society, Mahishdal Haldia Purba Medinipore, West Bengal, 721628. 2. CIT (Exemption), Kolkata.
CIT(A)-
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CIT(DR), Kolkata Benches, Kolkata.
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