NAVALAR-SEZHIYAN FOUNDATION AOP-TRUST,CHENNAI vs. CIT (EXEMPTIONS), CHENNAI

आयकर अपीलीय अिधकरण, ‘बी ’ �यायपीठ, चे�ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी मनु कुमार िग�र, �याियक सद�य एवं �ी एस. आर. रघुनाथा, लेखा सद�य के सम� BEFORE SHRI MANU KUMAR GIRI, HON’BLE JUDICIAL MEMBE AND SHRI S. R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 940/Chny/2024 Commissioner of Income Tax Navalar – Sezhiyan v. (Exemptions), Foundation, Chennai. VIT University, Katpadi to Thiruvalam Road, Vellore – 632 014. [PAN: AADTN-3315-N] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri. M. Karunakaran, Advocate ��यथ� क� ओर से/Respondent by : Shri. V. Nandakumar, CIT सुनवाई की तारीख/Date of Hearing : 24.06.2024 घोषणा की तारीख/Date of Pronouncement : 26.06.2024 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Exemption), Chennai in Form 10AD of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide Application No.CIT(Exemption), Chennai/2023-24/12AA/12407 dated 05.03.2024.

:-2-: ITA. No: 940/Chny/2024 3. Brief facts are that the assessee Society was created on 11.09.2017. Form No.10AC was issued granting provisional registration for the registration period of 3 years (from AY 2022-23 to AY 2024-25). Subsequently, on 28.09.2023, six months prior to expiry of provisional registration, the assessee filed Form No.10AB seeking registration u/s.12A(1)(ac)(ii) of the Act. The assessee received hearing notice, which was responded by the assessee but the CIT(Exemption) vide his order in Form No.10AD on 05.03.2024 rejected the assessee’s application treating it as infructuous and non-maintainable by stating the reason that the assessee ought to have applied u/s.12A(1)(ac)(iii) of the Act instead of 12A(1)(ac)(ii) of the Act. The CIT(Exemption) recorded the fact and rejected the application by observing as under:- “4.1. In the light of the fact that the applicant had been granted only provisional registration for a period of 3 years (from AY 2022-23 to AY 2024-2025) as stated above, the present application in Form 10AB filed u/s. 12A(1)(ac)(ii) seeking renewal of registration is prima-facie non-maintainable. 4.2 As explained in para 1.2 of this order, as per the provisions of section 12AB (1)(b) clause (ii) (B) of the I.T.Act,1961, if the application is made under sub-clause (ii) or sub-clause (iii) or sub- clause (v) of section 12A(1)(ac) and the Principal Commissioner or Commissioner has not satisfied, he can reject the application as well as cancel the registration of the trust/institution. The application filed by the applicant on 28.09.2023 in Form No. 10AB u/s 12(1)(ac)(ii) seeking renewal of registration u/s.12AB of the I.T. Act, 1961 is not maintainable for the reason stated above in Para 4.1 of this order, hence, it is rejected and its registration also cancelled.”

Aggrieved, assessee came in appeal before the Tribunal.

:-3-: ITA. No: 940/Chny/2024 applying u/s.12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Act. Hence, we set aside the order of CIT(Exemption) and remand the matter back to his file CIT(Exemption) for fresh adjudication of application u/s.12A(1)(ac)(iii) of the Act. Accordingly, matter restored back to the file of the CIT(Exemption). 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th June, 2024 at Chennai. Sd/- Sd/- (एस. आर. रघुनाथा) (मनु कुमार िग�र) (S. R. RAGHUNATHA) (MANU KUMAR GIRI) लेखासद�/Accountant Member �ाियक सद�/Judicial Member चे�ई/Chennai, �दनांक/Dated, the 26th June, 2024 JPV आदेश की �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3.आयकर आयु�/CIT– Chennai 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF