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Facts
The assessee filed an application for renewal of registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) rejected the application on the ground that the assessee failed to furnish a copy of the order of regular registration.
Held
The Tribunal held that the CIT(E) had erroneously rejected the application. It noted that the assessee had submitted a copy of the registration and that the CIT(E) himself had granted the registration earlier.
Key Issues
Whether the CIT(E) was justified in rejecting the renewal of registration application for non-submission of the regular registration order when it was allegedly submitted and previously granted by the same authority.
Sections Cited
12AB, 12A, 17A(2)(e), 2(15), 13(3), 11(4), 11(4A)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
This appeal filed by the assessee is directed against the order dated 22.01.2025 of the Ld. CIT(Exemption), Pune rejecting the application filed for regular registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Facts of the case, in brief, are that the assessee filed an application in Form No.10AB on 30.09.2024 before the Ld. CIT(E) for renewal of registration of the trust under sub-clause (ii) of clause (ac) of sub-section (1) of section 12A of the Act. With a view to verify the genuineness of the 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 through ITBA portal on 05.11.2024 requesting it to upload certain other information / clarification viz. self certified copy of order of regular registration u/s 12AB in form No.10AC, date of such approval, date of expiry of such approval, proof of identity of main trustees / directors, year-wise list of donations received, note on activities carried out along with supporting credible evidence, details of any other law applicable for achievement of objectives and proof of compliance of said law, details of business undertakings etc. The assessee in response to the same filed the requisite details. The Ld. CIT(E) noticed certain discrepancies for which he issued another notice to the assessee on 08.01.2025.
However, in absence of any compliance to the said notices, the Ld. CIT(E) rejected the application on the ground that the assessee did not submit a copy of order of regular registration u/s 12AB of the Act. The relevant observations of the Ld. CIT(E) from para 6 onwards read as under: “6. On verification of the details /submitted by the assessee, it is seen that the assessee has not furnished the copy of REGULAR REGISTRATION in form No.10AC under section 12AB read with section 12A(1)(ac) (i) or 12A(1)(ac)(iii) of the Income Tax Act, 1961 but submitted a copy of PROVISIONAL REGISTRATION under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961. 7. The present application is filed by the assessee under clause (ii) of section 12A(1)(ac) of the Income Tax Act, 1961. The provisions of clause (ii) of section 12A(1)(ac) are related to application for renewal of regular registration of a trust or institution which is already having regular registration under section 12AB of the Act and the period of said registration is about to expire.
The assessee was specifically requested vide the initial notice to furnish the copy of order of regular registration under section 12AB of the Income Tax Act, 1961. Such copy is actually required to be furnished along with the application itself under the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. However, the assessee has neither submitted the same along with the application nor in response to the notice issued in this regard. Thus the assessee failed to furnish the same. The copy of order submitted by the assessee is a copy of provisional registration under section 12AB read with clause (vi) of section 12A(1)(ac) of the Income Tax Act, 1961 and not a copy of regular registration under section 12AB read with clause (i) or clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961.
9. The non-submission of copy of order of regular registration under section 12AB of the Income Tax Act, 1961 establishes the fact that the prerequisite for application under clause (ii) of Section 12A(1)(ac) of the Income Tax Act, 1961 is not fulfilled in this case. Therefore, prima-facie it appears that the application is not maintainable.
10. In view of the above, the application filed by the assessee is treated as non- maintainable and hence, 'rejected' for statistical purposes without going into the merits of the case and no adverse inference is drawn against the assessee.”
Aggrieved with such order of Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds:
The following grounds are taken without prejudice to each other - On facts and in law, 1] The learned CIT(E) erred in rejecting the application filed by the assessee on the ground that the copy of the order of regular registration u/s 12AB was not filed by the assessee and hence, the application filed was not maintainable 2] The learned CIT(E) erred in not appreciating that the assessee had filed the order granting regular registration u/s 12AB(1) and therefore, there was no reason to reject the application filed by the assessee and the assessee prays that it may be granted approval u/s 12AB(1)(b) of the Act.
31. The assessee submits that it has been granted regular registration u/s 12AB(1) by the learned CIT(E) on 28.06.2024 and there was no reason reject the application of the assessee for non furnishing of the said order and the assessee prays that it may be granted approval u/s. 12AB(1)(b) of the Act.
4] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.
The Ld. Counsel for the assessee at the outset drew the attention of the Bench to page 9 of the paper book and submitted that as per clause 5 of the attachments, the assessee has submitted a self-certified copy of existing order granting registration under section 12A. Referring to pages 16 to 19 of the paper book, the Ld. Counsel for the assessee drew the attention of the Bench to the certificate granting registration u/s 12AB vide order dated 28.06.2024. Referring to page 28 of the paper book, the Ld. Counsel for the assessee drew the attention of the Bench to the letter addressed to the Ld. CIT(E) on 25.11.2024 and submitted that as per clause 2 of the said letter, it was informed to the Ld. CIT(E) that the date of registration u/s 12AB is 28.06.2024. The Ld. Counsel for the assessee submitted that since the Ld. CIT(E) himself has granted the registration u/s 12AB, therefore, he should have verified the records of the department which is available with him and should not have rejected the application for want of a copy of order of regular registration u/s 12AB. He accordingly submitted that the order of the Ld. CIT(E) being not in accordance with law should be set aside and the assessee should be granted regular registration u/s 12AB.
The Ld. DR on the other hand while supporting the order of the Ld. CIT(E) fairly conceded that as per the application filed by the assessee, copy of registration u/s 12AB was enclosed.
We have heard the rival arguments made by both the sides, perused the order of the Ld. CIT(E) and the paper book filed on behalf of the assessee. We find the Ld. CIT(E) rejected the application for renewal of registration u/s 12AB of the Act on the ground that the assessee has not furnished a copy of order of regular registration u/s 12AB. However, a perusal of the application filed for registration clearly shows that the copy of the same was enclosed. For the sake of clarity, we reproduce the documents enclosed as attachments along with the application:
8. Similarly, a perusal of the letter dated 25.11.2024 addressed to the CIT(E) clearly shows the date of registration is 28.06.2024. The letter addressed to the CIT(E) reads as under:
SANCHETI HOSPITAL AND MEDICAL RESEARCH CENTRE 16, SHIVAJINAGAR, PUNE-411005. PHONE: 2553 4444 Registration No: E-591, Pune
To, The Commissioner of Income-Tax [Exemption), Pune-411 037. Dear Sir, Subject:: Proceeding u/s 12A (1) (ac) (ii) PAN: AAA TA 3852 E With reference to your notice No. ITBA/EXM/F/EXM43/2024-25/10 701 23 520 (1) dated 05th November, 2024, we are to state as under: - 1) Self Certified Copy of the Registration in Form 10 AD under Section 12 AB(1)(b) dated 28.06.2024 is enclosed as Annexure 1. 2) Date of Registration under Section 12AB: 28/6/2024 3) Date of Expiry of Registration: Assessment Year 2025-26 4) Our trust was registered by your office under Section 12A under No. 3568 of 28th October, 2009, copy of the registration certificate is enclosed as Annexure 2. 5) An undertaking that there will be no infringement to the 1 Provisio to Section 2(15) of the Income Tax Act, 1961 is enclosed as Annexure 3. 6) An undertaking to the effect that the institution is complying all the requirements of Law as are material for the purpose of its objects as enumerated in the Trust Deed is enclosed as Annexure 4 7) Details of any other Law applicability: Maharashtra Public Trusts Act, 1950, is applicable to us. A copy of the (a) Registration Certificate under Trust Act and Trust Deed is enclosed as Annexure 5(a), (b) audited accounts for three years (Fin Year 2021-2022, Fin Year 2022-2023 & Fin Year 2023-2024) are enclosed as Annexure 5(b) and (c) acknowledgement issued by the joint charity commissioner, Pune-411 001, for the financial year 2022-2023 and financial year 2023-2024 are enclosed as Annexure 5(c). 8) No objection Certificate from the owner of the premises alongwith proof of ownership enclosed as Annexure 6. 9) PAN and Aadhar copy of Smt Manisha Sanghavi, main trustee is enclosed as Annexure 7. 10) The Trust has not received Donation during the last 3 years. 11) There are no such donations in respect of amounts directly credited to respective earmarked funds without routing through Income & Expenditure account, during the last 3 years. 12) The trust has not paid donation in the 2 years out of the last 3 years. The Trust has paid Rs. 600,000/- to Sancheti Healthcare & Research Foundation, PAN No ABDTS3680A in the Fin Year 2022-23. 13) Copy of Bank Account statement for Last 3 years are enclosed as Annexure 8. 14) Note on Activity of the Trust is enclosed as Annexure 9. 15) Copies of Computation of Total Income is enclosed as Annexure 10. 16) Explanation. a) There were some error while uploading the application u/s 800. Currently. there are no pending application other than the application u/s 12AB. b) There are no adverse or rejection of application filed earlier. c) All the objects of our trust are charitable as per section 2 (15) of the Income-Tax Act, 1961. There are no objects of religious in nature. d) There are no objects of commercial nature in our constitution nor tainted with profit intent. e) None of the objects is for any particular caste, creed, religious or community. f) No part of income of the institution enures, directly or indirectly, for the benefit of a person specified u/s 13(3) of the Income Tax Act, 1961. g) There is no business undertaking is held by us as per the provisions of Section 11(4) of 11(4A). h) All the returns of income for the last 3 years have been filed. Acknowledgement copies of the Return filed are enclosed as Annexure 11. 17) Our trust is not running any education institution and therefore para 2.1 of the questioner is not applicable. 18) Our trust is not running any hospital/nursing home/health care centre and therefore para 2.2 of the questioner is not applicable. 19) The application submitted is for renewal of the regular registration / approval of the trust/institution. Your honor, is requested to provide us opportunity for personal hearing. We will provide any additional information required by your honor. For SANCHETI HOSPITAL AND MEDICAL RESEARCH CENTRE Sd/- TRUSTEE PUNE-411 005. DATED:-25TH November, 2024.”
Under these circumstances, the allegation of the CIT(E) that the assessee has not enclosed the copy of order of regular registration u/s 12AB is contrary to the facts. Even otherwise also, when the CIT(E) himself has granted the regular registration u/s 12AB on 28.06.2024, a copy of the same was supposed to be in his office and he should not have cancelled the application for renewal of registration u/s 12AB merely for want of non submission of the same. Under these circumstances and considering the fact that the registration certificate u/s 12AB was already enclosed along with the application and further considering the fact that the assessee during the course of hearing before the CIT(E) has categorically stated the date of registration is 28.06.2024, therefore, we set aside the order of the CIT(E) and direct him to grant approval u/s 12AB(1)(b) of the Act. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed.
In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open Court on 22nd April, 2025.