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Facts
The assessee, Mission Table Tennis Development Trust, filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The CIT(Exemption) rejected the application, citing the absence of irrevocability and dissolution clauses in the Trust Deed and the non-furnishing of required details by the assessee.
Held
The Tribunal held that the CIT(Exemption) had rejected the application due to the non-furnishing of details. In the interest of justice and fair play, the assessee should be granted another opportunity to file proper submissions.
Key Issues
Whether the rejection of the application for registration under Section 12A(1)(ac)(iii) by the CIT(Exemption) was justified, and whether the assessee should be granted another opportunity to present its case.
Sections Cited
12AB(1)(b)(ii), 12A(1)(ac)(iii), Income Tax Act, 1961
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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH AT KOLKATA
Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as the ‘Ld. CIT (Exemption)’] passed in respect of registration u/s 12AB(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 25.06.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. The order u/s. 12AB(1)(b)(ii) of the Act is bad in law.
The learned CIT(Exemption) has erred in law as well as on facts for rejecting the application for registration u/s 12A(1)(ac) (iii) of the Act and cancelling provisional registration earlier granted.”
Brief facts of the case are that the assessee is a Trust and had filed an application on 01.10.2024 for registration u/s 12A(1)(ac)(iii) of the Act in Form No. 10AB. Accordingly, a notice was issued seeking certain ITA No(s). 1992/KOL/2025 Assessment Year(s) N.A. Mission Table Tennis Development Trust. information from the assessee viz., the revised Trust Deed, proof of existence of office at the given address, copies of ID and address proof of all the office bearers and members of the Trust etc. The Ld. CIT (Exemption) perused the submission of the assessee and noted that an irrevocable clause in a Trust Deed means that the Trust cannot be altered, amended, or terminated by the settlor once it has been established and simultaneously, a dissolution clause in a Trust Deed outlines the conditions and procedures for terminating the Trust. Both of these clauses specify how the Trust’s assets will be distributed upon its termination and includes specific events or circumstances under which the Trust may be dissolved. These two clauses play major role to ensure that the charitable Trust operates with a clear consistent purpose and provides structured approach for the distribution of assets if the Trust is ever dissolved. The Ld. CIT (Exemption) considered the facts and observed that since there was no irrevocability clause and dissolution clause in the Trust Deed and no affidavit had been filed in this regard, the approval u/s 12AB of the Act could not be granted to the assessee and therefore, the application u/s 12A(1)(ac)(iii) of the Act filed by the assessee was treated as non-maintainable and rejected and accordingly, the provisional certificate issued to the assessee was also cancelled. Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal.
Rival contentions were heard and the submissions made have been examined. It was stated by the Ld. AR that the Ld. CIT(E) call for certain details which the assessee stated that the would do on some future date, but inadvertently the same could not be filed and therefore, the registration was cancelled. It was requested that the assessee is now ITA No(s). 1992/KOL/2025 Assessment Year(s) N.A. Mission Table Tennis Development Trust. modified the required document and requested that another opportunity may be provided by demanding the matter before the Ld. CIT(E).
The Ld. DR relied upon the order of the Ld. CIT(E) and requested that the same may be upheld.
We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(E). The Bench was of the view that the Ld. CIT (Exemption) had rejected the application for final registration u/s 12A(1)(ac)(iii) of the Act on account of non-furnishing of the details which were sought but could not be supplied by the assessee. Therefore, in the interest of justice and fair play, it was considered imperative that the assessee may be allowed another opportunity to file proper submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and claim of exemption and the modified trust deed. Hence, the order of the Ld. CIT (Exemption) is set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and seeking the reply from the assessee in respect of the queries raised and in accordance with law. Hence, all the grounds of appeal are partly allowed for statistical purpose.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 10th March, 2026. [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 10.03.2026 Bidhan (Sr. P.S.) ITA No(s). 1992/KOL/2025 Assessment Year(s) N.A. Mission Table Tennis Development Trust. Copy of the order forwarded to:
Mission Table Tennis Development Trust, C/o. Sarda & Sarda (CA), Sakar 1st Floor, Dr. Radha-Krishnan Road, Opp. Rajkumar College, Rajkot, Gujarat, 360001. 2. The Commissioner of Income Tax (Exmption).
CIT(A)-
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order