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Facts
The assessee, a charitable trust, made a technical mistake in its application for registration under Section 12A by selecting sub-clause (i) instead of (iv) of Section 12A(1)(ac). The CIT(E) consequently rejected the application and cancelled the existing registration under Rule 17A(6) of the Income Tax Rules.
Held
The Tribunal ruled that the assessee's error was a technical mistake. It set aside the CIT(E)'s order and remanded the matter for fresh adjudication, allowing the appeal for statistical purposes.
Key Issues
Whether a technical error in selecting the sub-clause for Section 12A registration warrants rejection of application and cancellation of existing registration by the CIT(E).
Sections Cited
12A, 17A
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Sonjoy Sarma
Assessment Years: 2025-26 Stella Maris Trust CIT(Exemption), Kochi v. 19/292 Bishops House Ambalapuza Taluk Alappuzha Bazar S.O Alappuzha West, Alappuzha Kerala-688012. PAN : ABETS6388Q. (Appellant) (Respondent) Appellant by : None Respondent by : Shri Suresh Sivanandan IRS, CIT-DR Date of Hearing : 02.06.2025 Date of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 26.12.2024 of the CIT(Exemption), Kochi [hereinafter referred to as ‘CIT(E)’] denying the assessee’s registration u/s 12A of the Act.
Brief facts of the case are that the assessee is a charitable trust. Form no.10AC was issued on 05.07.2024 granting registration u/s 12A(1)(ac)(i) of the Act from A.Y 2022-23 to A.Y 2026-27. The assessee committed a technical mistake in making
The CIT(E) rejected the application in Form 10AB filed for registration u/s 12A observing as under:
The applicant was requested show cause as to why its application in Form 10AB filed for registration u/s.12A should not be rejected, on or before 20/12/2024, vide order sheet noting dated 17/12/2024. In its reply, the applicant stated that they have selected section code 12A(1)(ac)(i) instead of 12A(1)(ac)(iv) due to inadvertent oversight. Thus, the applicant has not denied the fact that it has obtained regular registration in form 10AC under sub clause (i) of clause (ac) of sub-section (1) of section 12A erroneously. Since the applicant has obtained regular registration under section 12A erroneously, the same has to be cancelled as per the provisions under sub rule (6) of Income Tax Rules 17A. The various ITAT orders quoted are not applicable in the case of the applicant. Based on the above discussion, Form 10AB filed for registration u/s.12A of the Act is rejected. Further, regular registration u/s.12A obtained in Form 10AC is cancelled, being erroneous, as per provisions of Income Tax Rules 17A (6).
No one has appeared on behalf of the assessee despite serving notice. We proceed to adjudicate the case after hearing the ld. DR and perusing the materials on record.
After hearing the ld. DR and going through the records , we find that the assessee has made a technical mistake in applying u/s 12A(1)(ac)(i) of the Act instead of u/s 12A(1)(ac)(iv) of the Act and hence, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) for fresh adjudication in accordance with law.
Order pronounced on 10.06.2025.