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Facts
The assessee, Alagappa University, filed an application in Form 10AB for registration under section 10(23C)(iii) of the Income Tax Act, 1961. The application was inadvertently filed in Form 10AB instead of Form 10A for provisional approval.
Held
The Tribunal held that the inadvertent error in filing the wrong form should not prevent the assessee from obtaining provisional approval. The rejection of the application by the Ld.CIT(E) was set aside.
Key Issues
Whether the inadvertent filing of the wrong form for registration should lead to the rejection of the application for provisional approval.
Sections Cited
10(23C)(iii), 10(23C)(vi)
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter in short "the Ld.CIT(E)”), Chennai, dated 29.10.2024 rejecting the application dated 27.04.2024 filed in Form 10AB seeking registration u/s.10(23C)(iii)
of the Income Tax Act, 1961 (hereinafter in short "the Act”).
The brief facts are that the assessee is a University established under the Algappa University Act, 1985 of the Tamil Nadu State Government. Since University has been established for educational purposes and not substantially funded by the Government, in order to claim exemption u/s.10(23C)(vi) of the Act, it filed on 27.04.2024 an application for registration inadvertently in Form 10AB under clause (iii) of the first proviso to clause 23C of section 10 of the Act, instead of correctly filing it in Form 10A [application for provisional approval] and in such an event, assessee would have obtained automatically granted provisional approval in Form 10AC. However, the Ld.CIT(E) rejected as not maintainable the application filed by the assessee in Form 10AB, since the assessee failed to file the provisional approval in Form 10AC. We don’t countenance the impugned action of the Ld.CIT(E), because, the inadvertent error in filing wrong Form [10AB in place of Form 10AC] shouldn’t come in the way of the assessee University being denied provisional approval u/s.10(23C) of the Act. Therefore, we set aside the impugned action of the Ld.CIT(E) and restore the application dated 27.04.2024 back to the file of the Ld.CIT(E) with a direction to treat Form 10AB filed as if it is filed in Form 10A and grant provisional registration for three (3) years in accordance to law in the peculiar facts noted supra.