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Facts
The assessee, having commenced its activities in 1976, applied for provisional registration under Section 12A(1)(ac)(iii) in 2024. The Ld. CIT(E) rejected the application on the ground that provisional registration is applicable only to entities that have not yet commenced activities, which was not the case here.
Held
The Tribunal observed that the rejection was based on technical grounds, as the assessee already had 12A registration under the old regime. It held that due to the nuances of the new registration regime, the application should be considered under the appropriate clause, not merely rejected on technicalities. The Tribunal set aside the CIT(E)'s order and directed a fresh order after considering the application under the correct/relevant clause.
Key Issues
Whether an application for provisional registration under Section 12A(1)(ac)(iii) by an entity that has already commenced activities can be rejected solely on technical grounds, especially considering the changes in the registration regime.
Sections Cited
12A, 12A(1)(ac)(iii)
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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
Student Aid Society CIT (Exemption) बनाम/ PU Campus, Punjab University Sector 17-E Vs. Sector 14, Chandigarh-160014. Chandigarh. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAGTS-5630-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Ms. Rajni (CA) & Shri Anil Arora (CA) – Ld. ARs ��थ�कीओरसे/Respondent by : Smt. Kusum Bansal (CIT) – Ld. DR (virtual) सुनवाईकीतारीख/Date of Hearing : 29-07-2025 घोषणाकीतारीख /Date of Pronouncement : 04-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by the rejection of an application seeking registration u/s 12A(1)(ac)(iii) vide impugned order dated 11-02-2025 of Ld. CIT(Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us.
Upon perusal of para-3.2 of the impugned order, it could be seen that the assessee had already commenced its activities on 03-03- 1976 when it applied for provisional registration to CPC on 06-05- 2024. However, this registration could be applied only when the assessee had not commenced its activities which was not the case. Accordingly, the registration application was rejected and also the provisional registration was held to be bad in law. The Ld. AR has prayed that error occurred in understating the nuisances of new regime of registration which came into effect from 01-04-2021.
We find that the registration has been denied merely on technical grounds. The assessee enjoyed 12A registration under old regime. The errors apparently occurred due to new regime of registration which provide separate mechanism for registration of old and new trusts. Nevertheless the principles of natural justice demand that the application of the assessee be considered under applicable / relevant clause and the registration should not be denied merely on technical grounds. Therefore we set aside the impugned order and direct Ld. CIT(E) to pass fresh order after considering the application under correct / relevant clause.
The appeal stand allowed for statistical purposes. Order pronounced on 04-08-2025.