SANKALP BAHUDDESHIYA JANKALYAN MANDAL,DHULE vs. CIT(EXEMPTION), PUNE, PUNE

This appeal filed by the assessee is directed against the order dated 04.06.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.

Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of 12A(1)(ac) of the IT Act on 17.01.2025. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 24.02.2025 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 29.04.2025. The assessee furnished its reply. Not being satisfied with the explanation furnished by the assessee in response to notice dated 29.04.2025, Ld. CIT, Exemption, Pune rejected the application for registration u/s 12AB of the IT Act. It is this order against which the assessee is in appeal before this Tribunal.

Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is unjustified. Ld. AR submitted that Ld. CIT, Exemption, Pune has not found anything adverse on merits of the case, however, for want of copy of provisional registration under clause (vi) of section 12A(1)(ac) of IT Act the application for registration was rejected. Ld. AR further submitted that admittedly no application was filed for obtaining provisional registration under clause (vi) of section 12A(1)(ac) of the IT Act, therefore, question of submitting the same before Ld. CIT, Exemption, Pune does not arise. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune with a direction to provide one more opportunity to apply under correct section code and to furnish the requisite documents/information as desired by Ld. CIT, Exemption, Pune.

Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.

We have heard Ld. Counsels from both the sides and perused the material available on record including the paper-book filed by the assessee. In this regard, we find that admittedly the assessee has not furnished application under clause (vi) of section 12A(1)(ac) of the IT Act for obtaining provisional registration, however it had applied under clause (iii) of section 12A(1)(ac) of the IT Act which is applicable in case of assessee who already possess a provisional registration certificate. Prima-facie, we do not find any error in the order passed by Ld. CIT, Exemption, Pune wherein he asked the assessee to provide copy of provisional registration certificate and when the assessee failed to provide the same, the application for registration was summarily rejected without any adverse findings on merits of the case. At the same time, we also find that CBDT earlier came with a Circular No.7/2024 dated 25.04.2024 wherein the issue of wrong section code was addressed and permission to file fresh application under correct section code was provided to the assessee for a certain period. The period allowed is already over now, but we also find that under identical facts a coordinate bench of this Tribunal in the case of Raj Krishan Jain Charitable Trust in order dated 05.06.2024 has allowed the appeal of the assessee and permitted him to file the application under correct section code and also directed Ld. CIT, Exemption to consider his application afresh by observing as under :- “9. As contended the appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of clause (iii) of clause (ac) of sub-section (1) of section 12A of the Act. As pointed out the appellant has filed revised form 10AB for seeking registration under the correct provision i.e. Section 12A(1)(ac)(iii) which can also be considered.

In the result, the appeal filed by the assessee is allowed for statistical purpose.”

Respectfully following the above decision passed in the case of Raj Krishan Jain Charitable Trust (supra), we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and direct the assessee to file a fresh application under correct section code which shall be considered by Ld. CIT, Exemption, Pune and the issue of registration u/s 12AB of the IT Act will be decided afresh as per fact and law. The assessee is also hereby further directed to produce requisite documents/information/ submissions in support of the application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.