Loading judgment…
Facts
The assessee, Indian Institute of Fire Engineering, appealed an order by the CIT(E) which rejected their application for registration. The CIT(E) rejected the application because the assessee failed to provide a copy of their provisional registration order, which is a prerequisite for applying under Section 12A(1)(ac)(iii). The assessee argued that they had obtained prior registration under Section 12A and a provisional registration under Section 12AB.
Held
The Tribunal found that the assessee trust was indeed registered under Section 12A from the financial year 2017-18 onwards, and had obtained provisional registration from 2022-23 to 2026-27. The Tribunal held that the CIT(E)'s conclusions were baseless and not in line with the facts on record, as the CIT(E) did not refer to office records before dismissing the application.
Key Issues
Whether the CIT(E) was justified in cancelling the provisional registration granted to the assessee for want of documents and explanations, despite the assessee having prior registrations.
Sections Cited
Section 12A(1)(ac) of the Income Tax Act, 1961, Section 12AB of the Income Tax Act, 1961, Rule 17A(2)(e) of the Income Tax Rules, 1962
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 14/05/2025 Date of Order – 09/06/2025
O R D E R PER K.M. ROY, A.M.
By this appeal, the assessee is challenging the impugned order dated 18/02/2025, passed in Form no.10AD, by the learned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(E)”], rejecting the application dated 29/10/2024, filed in Form no.10AB under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 ("the Act").
The assessee has raised following grounds:–
“1. Whether on the facts and circumstances of the case, the learned CIT-(E) Pune was justified in cancelling the provisional registration granted under section 12AB r.w.s. 12A(1)(ac) (vi) of the Income Tax Act, 1961 for want of a few documents and explanations 2. The Appellant craves leave to add or alter any other ground that may be taken at the time of the hearing.”
2 Indian Institute of Fire Engineering ITA no.171/Nag./2025
The learned CIT(E), while rejecting the application of the assessee, held as under:– “9. The assessee has obtained regular registration under section 12AB of the Act under clause (i) of section 12A(1)(ac) of the Act but it seems that the assessee was not registered under section 12A/12AA of the Act prior to 01/04/2021 since the copy of such registration is neither attached with the original application while applying for such registration nor during the present proceedings. Therefore, the undersigned is unable to draw any satisfactory conclusion.
Further, the provisions of clause (iii) section 12A(1)(ac) of the Act are applicable to a trust / institution which is provisionally registered under section 12AB read with clause (vi) of section 12A(1)(ac) of the Act. As per the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962, the copy of existing order of registration was required to be submitted along with the application itself. Thus, the copy of order of provisional registration under section 12AB read with clause (vi) of section 12A(1)(ac) of the Income Tax Act, 1961 was required to be submitted along with the application itself and such copy of specifically called for vide the initial notice also. However, the assessee has failed to submit the same. The non-submission of copy of order of provisional approval u/s 12AB of the Act establishes the fact that the prerequisite for application under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961, is not fulfilled.”
Upon perusal of the Paper Book furnished by the learned Counsel for the assessee, it is seen that the assessee trust was registered under section 12A of the Act w.e.f. the financial year 2017–18 onwards. Further, provisional registration was granted on 28/05/2021, from the assessment year 2022–23 to 2026–27. This is a clear pointer to the fact that the assessee trust was duly registered in erstwhile regime. The conclusions draws by the learned CIT(E) are hollow and baseless and is in complete divergence to the fact on record. It is excruciating to observe that the learned CIT(E) did not bother to refer to his office records and has decided to dismiss the application in a cavalier manner and we do not approve the same. Be that as it may, the matter is 3 Indian Institute of Fire Engineering ITA no.171/Nag./2025 restored to the file of the learned CIT(E) for examination of the documents as deemed necessary in this context. Both the learned Counsel for the parties in all fairness agreed to this proposition and submitted that they do not have any objection. Accordingly, the issues raised in this appeal are allowed for statistical purposes.
In the result, appeal by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 09/06/2025