Loading judgment…
Facts
The assessee filed an application for registration under Section 12AB of the IT Act. The CIT, Exemption, rejected the application on the grounds of non-furnishing of provisional registration and registration prior to April 1, 2021. The assessee appealed this order.
Held
The Tribunal found that the assessee was indeed registered prior to April 1, 2021, and the application under clause (iii) of Section 12A(1)(ac) was inadvertently filed. The Tribunal set aside the CIT's order and remanded the matter back for fresh consideration.
Key Issues
Whether the rejection of the registration application by the CIT was justified due to the alleged non-furnishing of required documents, considering the assessee's prior registration.
Sections Cited
12AB, 12A(1)(ac), 17A(2)(e), 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Bangiya Samsad Nagar Vs. CIT, Exemption, Pune. Road, Flat No.08, Lunkad Avenue, Nagar Road, Viman Nagar- 411014. PAN : AABTB6015H Appellant Respondent Assessee by : Shri Rameshwar L. Nehre Revenue by : Shri Amol Khairnar Date of hearing : 07.08.2025 Date of pronouncement : 08.08.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 27.03.2023 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
There is delay of in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation, duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 06.09.2022. 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 21.12.2022 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. Not being satisfied with the explanation furnished by the assessee, Ld. CIT, Exemption, Pune rejected the application for registration u/s 12AB of the IT Act by observing as under :- “3. On verification of the details submitted by the assessee it is seen that the assessee has not furnished the copy of provisional registration under section 12AB of the Income Tax Act, 1961. The assessee has filed application under clause (ii) of section 12A(1)(ac) of the Act. The provisions of said clause are applicable to a trust or institution which is provisionally registered under clause (vi) of the said section. As per the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. the Therefore, the copy of order of provisional registration under section 12AB of the Act in form No. 10AC issued under the provisions of clause (vi) of section 12A(1)(ac) of the Act was required to be submitted along with the application, itself. However, the copy of such provisional registration is neither submitted along with the application nor during the present proceedings. Therefore, the prerequisite for application under clause (iii) of section 12A(1)(ac) of the Act is not fulfilled. 3.1 It is also seen that the assessee has obtained regular registration under section 12AB of the Act read with clause (i) of section 12A(1)(ac) of the Act on 10/03/2022 but the assessee was not registered under section 12A/12AA of the Act prior to 01/04/2021 since the copy of such registration was neither attached with the original application while applying for such registration nor during the present proceedings. In fact, it is seen that the assessee submitted a paper through its submission wherein it is stated that it is applying for registration under section 12A for the first time so it does not have any previous registration documents. Therefore, the regular registration found to be invalid. The assessee was requested vide notice dated 09/03/2023 to show cause as to why the application should not be rejected and why the approval granted under section 12AB of the Income Tax Act, 1961 should not be cancelled. The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration shall also be liable to be cancelled. The compliance to the said notice was due on 16/03/2023. The notice was duly served on the assessee through e- portal and email. 3.2 However, the assessee neither submitted any explanation to the show cause notice till date nor availed the opportunity of being heard.
It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not submitted any compliance. It seems that the assessee is not having any supporting documents /evidence to submit. 4.1 The assessee has not furnished the copy of provisional registration under section 12AB of the Act hence the prerequisite for the present application under clause (iii) of section 12A(1)(ac) of the Act is not fulfilled in this case. Further, the regular registration obtained by the assessee is also found to be invalid.
In view of the above, the application filed by the assessee is hereby rejected and the registration granted on 10/03/2022 under 12AB read with clause (i) of section 12A(1)(ac) of the Income Tax Act, 1961 is hereby cancelled.” 4. It is this order against which the assessee is in appeal before this Tribunal. 5. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune rejected the application for registration on the basis of two reasons :-
1. 1. Non-furnishing of copy of registration granted prior to 01.04.2021, u/s 12AA of the IT Act, 2. Non-furnishing of copy of Provisional Registration under clause (vi) of section 12A(1)(ac) of the IT Act.
6. With regard to above reason nos.1 & 2, Ld. AR submitted that vide order dated 29.09.2020 the assessee was granted registration u/s 12AA of the IT Act i.e. prior to new regime of registration and therefore under new regime he directly applied for Registration under clause (i) of proviso to section 12A1(ac) of the IT Act & was granted Registration on 10-03-2022. Since the assessee could not furnish copy of registration certificate dated 20-09-2020 before Ld. CIT, Exemption, Pune, he was of the view that the Registration (i) of section 12A(1)(ac) of the IT Act granted on 10-03-2022 is not correct & accordingly he rejected the impugned application for registration applied under clause (iii) of section 12A(1)(ac) of the IT Act which was inadvertently filed by the assessee presuming that the registration granted on 10-03-2022 is provisional & not final. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune & further requested to direct Ld. CIT, Exemption, Pune to grant Registration u/s 12AB of the IT Act.
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. We find that admittedly vide order dated 29.09.2020 the assessee was granted registration u/s 12AA of the IT Act but the copy of above registration certificate could not be produced before Ld. CIT, Exemption, Pune, due to this reason the application of the assessee was rejected. Now, the copy of registration u/s 12AA dated 29.09.2020 is produced before us and from the perusal of the 01.04.2021 and therefore under new regime he was not required to get any provisional registration under clause (vi) of section 12A(1)(ac) of the IT Act instead he was required to get registration under clause (i) of section 12A(1)(ac) of the IT Act under the new regime, which was rightly granted to him vide order dated 10-03-2022. However inadvertently the assessee again applied under clause (iii) of section 12A1(ac) of the IT Act.
Considering the totality of the facts of the case, we find force in the above arguments of Ld. Counsel of the assessee and therefore we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and 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