JAMNAGARWALA CHARITABLE TRUST,CHENNAI vs. CIT EXEMPTIONS, CHENNAI

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ITA 495/CHNY/2024Status: DisposedITAT Chennai25 June 2024AY 2024-25Bench: SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(E) rejected the application without providing the assessee an opportunity to rectify the mistake. Therefore, the order of the CIT(E) was set aside.

What were the facts?

The assessee filed an application for registration under Section 12AB of the Income Tax Act in Form No. 10AB. The application was rejected by the CIT(E) because the assessee mistakenly selected the code for re-approval (12A(1)(ac)(ii)) instead of fresh approval (12A(1)(ac)(iii)).

What were the issues?

Whether the rejection of an application for registration under Section 12AB without providing an opportunity to rectify a technical error is justified.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii),Section 12A(1)(ac)(iii),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL

Hearing: 25.06.2024Pronounced: 25.06.2024

आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT:

1.

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Exemption), Chennai dated 12.01.2024, rejecting Form No.10AB u/s.12A(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter the ‘Act’) filed for seeking registration/approval/recognition u/s.12AB of the Act.

2.

At the outset, the ld.AR for the assessee stated that the CIT(E) has rejected the assessee’s application in Form No.10AB filed for seeking registration/approval/recognition u/s.12A(1)(ac)(ii) of the Act due to the reason that in assessee’s application a mistake has occurred while uploading Form No.10AB in selecting the code 12A(1)(c)(iii), code 12A(1)(c)(ii) was selected. Further, the CIT(E) has not provided opportunity to the assessee to rectify the mistake and straightaway rejected the application.

3.

Brief facts are that the assessee filed online application on 07.07.2023 in Form No.10AB u/s.12A(1)(ac)(ii) of the Act. The CIT(E) noted that the assessee’s case is for fresh approval and assessee ought to have filed its application u/s.12A(1)(ac)(iii) of the Act but assessee has erroneously filed its application in Form No.10AB u/s.12A(1)(ac)(ii) of the Act which covers the cases of trusts which are already approved and seeking re-approval. The CIT(E) rejected the assessee’s 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 2023-24 to AY 2025-26), 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. On careful consideration of the above facts and circumstances, the above application filed on 07.07.2023 in Form No. 10AB u/s 12A(1)(ac)(ii) is treated s infructuous, non-maintainable and hence, the same is rejected for - 3 - statistical purpose. However, no adverse inference is drawn against the applicant’s existing and valid registration, if any, as per law u/s.12AB.”

4.

Since the CIT(E) has not granted proper opportunity to rectify the mistake, we set aside the order of CIT(E) and remand the matter back to the file of CIT(E) for fresh adjudication on merits. In term of the above, the CIT(E) is directed to pass a speaking order on merits without going into the technicalities. Accordingly, the appeal of assessee is allowed for statistical purposes.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court at the time of hearing on 25th June, 2024 at Chennai.

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