ORISSA STATE RURAL ROAD AGENCY,BHUBANESWAR vs. THE COMMISSIONER OF INCOME TAX(EXEMPTION), HYDERABAD, HYDERABAD

It was submitted by the ld. AR that the assessee filed an application electronically in Form 10AB seeking registration u/s.12AB of the Act. It was the submission that in the online process while filing the application in Form No.10A, wrong section code was selected i.e., "02-Sub Clause(vi) of clause (ac) of subsection (1) of section 12A of the Act. It was the submission that the assessee went for a new provisional registration by selecting the wrong section code in form No 10A, though they had existing registration u/ 12A before 01.04.2021 as there is no option to choose the said section as the 31.03.2022 only and requested to consider the same and issue regular registration u/s 12AB as the mistake was not intentional. However, without considering the same, ld. CIT(E) rejected the application of the assessee. It was the prayer that the ld. CIT(E) may be directed to grant the registration.

In reply, ld. CIT-DR vehemently supported the order of the ld.CIT(E) and submitted that the mistake committed by the assessee in form 10A cannot be rectified and further the time limit for filing form 10A by selecting the said section code was extended till 30.06.2024 vide circular No 7 of 2024 dated 25.04.2024. It was the submission that as the assessee selected wrong section code while applying in form 10A, the Form 10AB filed by the assessee for regular registration u/s 12AB is infructuous and the order of the ld. CIT(E) may be upheld.

We have considered the rival submissions. A perusal of the order of the ld. CIT(E) clearly shows that the assessee has filed application in Form 10AB seeking regular registration u/s.12AB of the Act, however, the same was filed under the wrong code which is not an appropriate section code in the case of the assessee as the assessee is holding registration u/s.12AB of the Act issued by the department. The assessee while filing the application has opted section code 12A(1)(ac)(i) of the Act instead of 12(1)(ac)(vi) of the Act. As the assessee has submitted that the mistake is not intentional, therefore, in the interest of justice, the issue in this appeal is restored to the file of the ld. CIT(E) for fresh adjudication after granting the assessee adequate opportunity of being heard. A liberty is granted to