Loading judgment…
Facts
The assessee-applicant filed an application for registration u/s 12A of the Income Tax Act for AY 2012-13, which was rejected. After multiple rounds of litigation, registration was granted w.e.f. AY 2017-18. The Tribunal dismissed the appeal seeking registration for earlier years, stating it was granted from AY 2017-18. The applicant filed a miscellaneous application to recall this order, citing a mistake apparent from the record.
Held
The Tribunal held that there was a mistake apparent from the record as the earlier orders did not provide specific findings for denying registration for the years prior to AY 2017-18, despite the application being filed for AY 2012-13. It was inferred that since registration was granted from AY 2017-18, there were no adverse findings against the trust's nature and objects.
Key Issues
Whether there was a mistake apparent from the record in the Tribunal's order dismissing the appeal for registration for AY 2012-13 and onwards, despite no specific reasons provided for denial for earlier years.
Sections Cited
12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI OMPRAKASH KANT, AM
O R D E R Per Kavitha Rajagopal, J M:
This Miscellaneous Application has been filed by the assessee/applicant for recall of the order of the Tribunal dated 23.12.2022 in relevant to Assessment Year (“AY” for short) 2012-13 on ground that there is mistake apparent from the record.
Briefly stated, the applicant/assessee trust had filed an application for registration u/s 12A of the Act dated 11.03.2013 to the Learned Director of Income Tax (Exemption)
[“Ld. DIT(E)” for short], Mumbai and the same was rejected vide order dated 30.09.2013, M/s. Jamiat Ulema E Relief Foundation against which the applicant/assessee trust was in appeal before the Tribunal. The Tribunal vide order dated 22.02.2017 had set aside this issue to the Ld. DIT(E) to consider afresh the application of the applicant/assessee trust. Thereafter, the Learned Commissioner of Income Tax (Exemptions) [“Ld. CIT(E)” for short] in the order giving effect to the Tribunal’s order rejected the assessee’s application for registration on the ground that the assessee has failed to explain the source of donations and the expenditure to the satisfaction of the Ld. CIT(E) vide order dated 14.05.2019.
Aggrieved, the applicant/assessee trust was in appeal before the Tribunal, which vide order dated 28.06.2021 had remanded the issue to the Ld. CIT(E) to consider afresh and denovo after duly examining the objects of the applicant/assessee trust along with the evidences filed by the applicant/assessee trust. Subsequently, the Ld. CIT(E) in the order giving effect to the Tribunal’s order dated 28.06.2021 had granted the registration u/s 12A of the Act w.e.f. AY 2017-18 vide order dated 22.03.2022.
The assessee again preferred an appeal before the Tribunal seeking for registration prior to AY 20171-8 and the Tribunal vide order dated 23.12.2022 dismissed the appeal filed by the applicant/assessee trust stating that registration was already granted from AY 2017-18 and since there was no infirmity in the order of Ld. CIT(E) the appeal of the applicant/assessee trust was dismissed.
The applicant/assessee trust has filed the present miscellaneous application for recall of the order of the Tribunal dated 23.12.2022 stating that there is mistake apparent from the record of the order of the Tribunal.
It is observed that the applicant/assessee trust has filed an application for registration u/s 12A during the A.Y. 2012-13 which was rejected by the Ld. CIT(E) on various grounds and the applicant/assessee trust succeeded subsequently after several rounds of litigation before the Tribunal, the registration was granted by the Ld. CIT(E) but w.e.f. A.Y. 2017- 18 onwards. On perusal of the orders of various forums as aforementioned, it is evident that there is no specific finding as to why registration was not granted for earlier years.
This, in our view, is mistake apparent from record as the Tribunal in the impugned order dated 23.12.2022 has also not dealt with the same. We, therefore, deem it fit to recall the order of the Tribunal on this note.
In the result, the miscellaneous application filed by the applicant/assessee trust is hereby allowed.
The impugned order of the Tribunal dated 23.12.2022 was recalled by this Bench in the miscellaneous application 53/M/2023 as there being mistake apparent from the record.
Upon hearing both the rival contentions, it is observed that the Ld. CIT(E), after several rounds of litigation, had granted the registration u/s 12A to the assessee trust w.e..f. A.Y. 2017-18 and on perusal of the said order, we do not find any reason specified by the Ld. CIT(E) for non granting of registration for the prior assessment years as the assessee has filed the application for the registration during AY 2012-13 itself. It is also evident that MA No.531/Mum/2023 & M/s. Jamiat Ulema E Relief Foundation the assessee was in appeal before the Tribunal against the order for rejection of registration by the Ld. CIT(E), which again was in A.Y. 2012-13 and the co-ordinate Bench in its earlier orders has also directed the Ld. CIT(E) to examine the objects of the trust along with the source of the donations by considering the supporting documentary evidences based on the application seeking for registration u/s 12A, which was filed on 11.03.2013 and the events following the said application. We find justification in the contention of the Ld. AR for the assessee who has argued that there is no specific finding by any of the authorities as to why registration for prior years were rejected.
Since the assessee was granted registration from A.Y. 2017-18 it can be inferred that the Ld. CIT(E) did not have any adverse finding as to the nature and objects of the assessee trust. Considering the same, we deem it fit to direct the Ld. CIT(E) to consider the assessee trust’s plea along with all the relevant documentary evidences and to grant registration for the period prior to A.Y. 2017-18 on the merits and in accordance with law.
In the result, the miscellaneous applications as well as the appeal filed by the assessee/applicant is allowed on the above terms.
Order pronounced in the open court on 30.01.2026