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Facts
The assessee, Hind Vijay Gymkhana, a charitable trust, filed an application in Form 10AB seeking registration under Section 12A(1)(ac)(iii) of the Income-tax Act. The Commissioner of Income Tax (Exemption) rejected this application as premature and non-maintainable, contending that the assessee had not first obtained provisional registration under Section 12A(1)(ac)(vi).
Held
The Tribunal observed that the assessee was already enjoying exemption under Section 11 and possessed valid registration under Section 12A, as evidenced by consistent intimation orders under Section 143(1). It ruled that the application in Form 10AB was filed under a mistaken belief, rendering the CIT(E)'s rejection of the application infructuous. Consequently, the impugned order was set aside.
Key Issues
Whether the rejection of an application for registration under Section 12A(1)(ac)(iii) is valid when the assessee already holds a valid registration under Section 12A and has consistently been granted exemptions under Section 11 of the Income-tax Act.
Sections Cited
12AB, 12A(1)(ac)(iii), 12A(1)(ac)(vi), 11, 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER (Assessment Year: NA Hind Vijay Gymkhana, The Commissioner of Vs. Opposite Badmani baug, Income Tax, Near Navlakhi Compound, (Exemption), Vadodara-390001. Ahmedabad. [PAN :AAATH3200 K] (Appellant) .. (Respondent) Appellant by : Shri Sunil Talati, AR Respondent by: Shri Alpesh Parmar, CIT. DR Date of Hearing 16.07.2025 Date of Pronouncement 31.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal is filed by the assessee against the order dated 06.11.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as "Ld. CIT(E)"] under section 12AB of the Income- tax Act, 1961 (hereinafter referred to as "the Act"), rejecting the assessee’s application in Form 10AB seeking registration under Section 12A(1)(ac)(iii) of the Act. 2. The assessee has raised the following grounds of appeal:
1. The Ld. CIT(E) has erred in passing an order in Form 10AD by rejecting the appellant's application for registration or approval under sub-clause (iii) of clause (ac) of sub-section (1) of section 12A of the Income Tax Act, 1961 stating that such application is Premature and Non maintainable. It is submitted that the order passed by Ld. CIT(E) is incorrect and illegal both on facts and on law and the same be deleted.
2. The Ld. CIT(E) has erred in rejecting application of the Appellant for approval under u/s. 12A(1)(ac)(iii) of the Act without appreciating facts of the case that the appellant had erroneously filed a Form 10AB instead of Form 10A due to lack of knowledge. It is submitted that the order of rejection, passed by Ld. CIT(E) is now prayed to be considered as NULL and VOID and pray to direct Ld. CIT(E) to grant opportunity to file correct Form of application.
3. The order passed by Ld. CIT(E) is bad in law and is contrary to the provisions of law and facts. It is submitted that the same be held now.
Hind Vijay Gymkhana Vs. CIT(E) Asst. Year : NA - 2–
The brief facts of the case are that the assessee, a charitable trust named Hind Vijay Gymkhana, filed an application in Form No. 10AB seeking registration under section 12A(1)(ac)(iii) of the Act. Upon verification, the Ld. CIT(E) held that the application was premature and non-maintainable on the ground that the assessee had not obtained provisional registration under sub-clause (vi) of section 12A(1)(ac), as required before seeking regular registration under sub-clause (iii).
The Ld. CIT(E), after issuing notices and affording opportunities of hearing on 12.08.2024 and 08.10.2024, passed an order in Form 10AD rejecting the application. The reasoning recorded was that in the absence of a prior provisional registration, the application filed in Form 10AB could not be entertained as per the provisions of section 12A(1)(ac)(iii).
Before us, the Ld. AR submitted a letter enclosing therewith the intimation orders passed under section 143(1) of the Act for Assessment Years 2020-21 to 2024-25, which clearly reflect that the exemption u/s 11 has been consistently allowed by the Department. This demonstrates that the trust is already enjoying the benefit of exemption u/s 11 of the Act, implying that it is already registered under section 12A.
The Ld. AR further submitted that the application in Form 10AB was mistakenly filed due to a lack of technical knowledge, and the CIT(E) ought to have verified the factual position before rejecting the application on a mere procedural ground.
The Ld. DR supported the order of the Ld. CIT(E) and submitted that the application was rightly rejected as not maintainable, in absence of provisional registration.
We have heard the rival contentions and perused the material available on record. The intimation orders u/s143(1) for AYs 2020-21 to Hind Vijay Gymkhana Vs. CIT(E) Asst. Year : NA - 3– 2024-25, placed before us, clearly indicate that the Assessing Officer has allowed exemption u/s 11 of the Act in each of the assessment years, which suggests that the assessee has been duly registered u/s 12A of the Act which has been duly recognized by the Department as well. This clearly establishes that the assessee holds a valid registration u/s 12A of the Act; therefore, the application filed in Form 10AB u/s 12A(1)(ac)(iii) was filed under a wrong belief. Reliance is being placed on the decision of the Co- ordinate Bench of the Tribunal at Pune in the case of Rotary Club of Pune Down Town in ITA No. 1853/Pun/2018. In view of the above, the rejection of the said application by the CIT(E) as premature and non-maintainable becomes infructuous. Accordingly, the impugned order dated 06.11.2024 is set aside.
In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 31.07.2025