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Facts
The assessee, an old trust previously registered under Section 12AA, filed multiple applications for registration under the new regime. After initial procedural errors and a surrender of provisional registration, the assessee successfully obtained permanent registration under Section 12A(1)(ac)(i) and Section 80G(5)(i) on 01-12-2022. However, the Ld. CIT(E) subsequently rejected an earlier application for conversion of provisional to permanent registration (Form 10AB filed on 14-09-2022) on 20-02-2023, leading to this appeal.
Held
The Tribunal held that since the assessee had already been granted permanent registration under Section 12A(1)(ac)(i) and Section 80G(5)(i) on 01-12-2022, which was still valid, the earlier application for conversion of provisional registration (Form 10AB) became infructuous. Consequently, the impugned order rejecting this infructuous application was quashed.
Key Issues
The key issue is whether the rejection of an assessee's application for permanent registration is valid when the assessee has already obtained a fresh permanent registration under the correct legal provisions, rendering the earlier application infructuous.
Sections Cited
12A(1)(ac)(iii), 12AA, 12A(1)(ac)(i), 12A(1)(ac)(vi), 80G(5)(i)
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application filed by the assessee seeking registration u/s 12A(1)(ac)(iii) vide impugned order dated 20- 02-2023 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Having heard rival submission and upon perusal of case records, the appeal is disposed- off as under.
Upon perusal of para-5 of the impugned order, it could be seen that the application was rejected for want of evidences from the assessee. Before us, Ld. AR has filed sequence of registration applications filed by the assessee as under: - 1. 29.08.2013 Already registered U/s 12AA in old regime dated 29.08.2013 by CIT Exemption Panchkula 2. 19.12.2020 Application filed in Form 10A under section 12A(l)(ac)(vi) wrongly instead of Section 12A(l)(ac)(i) for existing registered entity 3. 27.05.2021 Provisional Registration granted in Form 10AC U/s 12A(l)(ac)(vi) for the assessment year 2021- 22 to 2023-24 4. 14.07.2021 Surrender Application filed of Form 10A filed u/s 12A(l)(ac)(vi) Surrender application was accepted on 23.11.2022 5. 14.09.2022 Form 10AB filed for conversion of Provisional into permanent since, the surrender application was not accepted by department upto 14.09.2022, so filed cautiously 6. 23.11.2022 Surrender application was accepted on 23.11.2022, means filing of Form 10A & Form 10AB become infructuous & null and void and has no legal sanctity. 7. 24.11.2022 Application for Registration under Correct Section 12A(l)(ac)(i) filed 8. 01.12.2022 Application filed on 24.11.2022 was accepted by the department & issued final approval / registration on 01.12.2022 for the assessment year 2022-23 to 2026-27 (By the same Worthy CIT Exemption). 01.12.2022 Registration U/s 80G(5)(i) dated 01.12.2022 was also issued by then Worthy CIT Exemption for the assessment year 2022-23 to 2026-27. 9. 20.02.2023 Order for rejection was passed by the same Worthy CIT Exemption rejecting the application filed in Form 10AB and earlier Form 10A. Since Form 10AB and Form 10A filed was surrendered and accepted by the department on 23.11.2022. So this rejection order passed on the basis of surrendered application is void ab initio 3. Upon perusal of above tabulation, it could be seen that the assessee trust is an old trust existing prior to 01-04-2021 and it was already registered u/s 12AA in the old regime. The assessee filed application in Form No.10A u/s 12(1)(ac)(vi) wrongly instead of correct Sec.12A(1)(ac)(i) which was applicable for existing registered entity.
Acting on this application, the assessee was granted provisional registration on 27-05-2021 for AYs 2021-22 to 2023-24. However, considering the mistake in the application, the assessee filed surrender application on 14-07-2021 which was accepted on 23-11-2022. In the meanwhile, the assessee preferred Form No.10AB on 14-09-2022 seeking conversion of provisional registration into permanent registration since surrender application was not accepted by the department up-to that date. On 24-11-2022, the assessee filed another fresh application seeking permanent registration under correct Section 12A(1)(ac)(i). Acting on the same, the assessee was granted final registration by Ld. CIT(E) on 01-12-2022 for AYs 2022-23 to 2026-27. The assessee also filed registration application u/s 80G(5)(i) on 01-12- 2022 which was also granted for AYs 2022-23 to 2026-27. However, vide impugned order dated 20-02-2023, the Ld. CIT(E) rejected Form No.10AB as filed by the assessee on 14-09-2022 seeking conversion of provisional registration into permanent registration for want of any effective representation from the assessee. The same is the exact grievance of the assessee.
It could thus be seen that the appeal has reached up-to Tribunal primarily because of misunderstanding of registration procedure under new regime by the assessee. Nevertheless, the fact remains that the assessee has filed fresh application under new regime and it has already been granted permanent registration on 01-12-2022 for AYs 2022-23 to 2026-27 which is intact till date. Considering this fact, the impugned application filed by the assessee on 14-09-2022 is to be considered as infructuous since surrender application of provisional registration has already been accepted by the department on 23-11- 2022. In this factual background, we hold that the impugned application filed by the assessee has been rendered infructuous and impugned order stand quashed. The assessee has already been granted permanent registration on 01-12-2022 for AYs 2022-23 to 2026-27 which would remain valid / in force. We order so.
The appeal stands allowed. Order Pronounced on 18-08-2025. Sd/- Sd/-s (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH