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Facts
The assessee was granted provisional registration under section 10(23C)(iv) of the Act. Subsequently, in Form 10AB for permanent registration, the assessee inadvertently mentioned section 10(23C)(ii) instead of 10(23C)(iv). The CIT(E) rejected the application as not maintainable.
Held
The Tribunal held that the application should not be rejected merely for mentioning a wrong section and that the assessee had not been given a proper opportunity. The Tribunal set aside the CIT(E)'s order and restored the matter for fresh consideration.
Key Issues
Whether rejection of registration application for mentioning a wrong section is justified without providing a proper opportunity of being heard?
Sections Cited
10(23C), 10(23C)(ii), 10(23C)(iv)
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Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW
Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA
O R D E R This appeal has been preferred by the Assessee against the order dated 30.12.2024, passed by the Commissioner of Income Tax (Exemption) under section 10(23C)(ii) of the Income Tax Act, 1961 (hereinafter called “the Act’) [CIT(E)], rejecting the application of the assessee for registration under section 10(23C) of the Act.
2.0 The brief facts of the case are that the assessee has been granted provisional registration/approval under section 10(23C)(iv) of the Act, vide order dated 10.02.2022 by the CIT(E). Subsequently, the assessee moved application dated 29.06.2024 in Form 10AB for registration/approval under section 10(23C) of the Act, which was rejected by the CIT(E), vide impugned order dated 30.12.2024, by observing that “It is not operating any Institution/university/other educational institution/ hospital/ other medical Institutions. Therefore application of assessee trust filed under the clause (ii) of first proviso to section 10(23C) of the Income Tax Act, is found non-maintainable as this provision is applicable in respect of fund/trust/institution/university/other educational institution/hospital/other medical institutions. Hence the application of the above mentioned society is non-maintainable and treated as "rejected”.
2.1 Aggrieved by the order of the Ld. CIT(E), the Assessee is now in appeal before us.
2.2 The Ld. Authorized Representative for the assessee (Ld. A.R.) submitted before us that the Application for Provisional Registration under section 10(23C)(iv) of the Act was filed on 03.02.2022 along with relevant Annexures, the copies of which are placed at pages 1 to 32 of the paper book. It was further submitted by the Ld. A.R. that the Provisional Registration was granted on 10.02.2022 under section 10(23C)(iv) of the Act, the copy of which is placed at pages 33 to 35 of the paper book. The Ld. A.R. submitted that, however, while filing the Form10AB for permanent Registration/Approval, inadvertently clause (ii) instead of clause (iv) of section 10(23C) of the Act was filled in and, therefore, the assessee’s application was rejected, vide impugned order dated 30.12.2024. The copies of Form 10AB and its Annexures are placed at pages 36 to 93 of the paper book. The Ld. A.R., referring to the objects of the assessee-society, as appearing at pages 9 and 10 of the paper book, submitted that the assessee be provided another opportunity with direction to the Ld. CIT(E) to consider assessee’s Application under section 10(23C) clause (ii) as Application under clause (iv) of the Act.
3.0 Per contra, the Ld. Sr.D.R. opposed the prayer of the assessee for being given another opportunity.
4.0 We have heard both the parties and after having gone through the material on record, we note that the Ld. CIT (E) had rejected the application of the assessee for final Registration/Approval under section 10(23C)(iv) of the Act observing that the application in Form No. 10AB filed by the assessee under section 10(23C)(ii) of the Act is not maintainable. The submission of the Ld. A.R. was that in the application for Registration/Approval under section 10(23C) of the Act, section was erroneously mentioned as 10(23C)(ii) of the Act in place of 10(23C(iv) of the Act in Form No.10AB. Under these facts, we feel that one more opportunity should be given to the assessee to explain its case before the ld. CIT (E), as the assessee has not been given proper and sufficient opportunity before disposing of the application for Registration/Approval under section 10(23C)(iv) of the Act. We, therefore, set aside the order of the ld. CIT (E) and restore the matter to his file with the direction to consider the applications of the assessee for registration under section 10(23C) of the Act after giving proper and sufficient opportunity of being heard to the assessee. The Ld. CIT(E) is directed to consider the assessee’s application under section 10(23C)(ii) of the Act as application filed under section 10(23C)(iv) of the Act. Alternatively, the Ld. CIT(E) may direct the assessee to file a fresh application for the purpose of record which shall be deemed to have been filed originally by the assessee, as we are of the considered view that application for grant of registration should not be rejected merely for the reason of mentioning of a wrong section.
5.0 In the final result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open Court on 21/11/2025.