JAYAMANGALAM FOUNDATION,CHENNAI vs. CIT(EXEMPTIONS), CHENNAI

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ITA 852/CHNY/2024Status: DisposedITAT Chennai22 May 2024AY 2023-24Bench: SHRI SS VISWANETHRA RAVI (Judicial Member), SHRI JAGADISH (Accountant Member)3 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted a subsequent CBDT circular extending the deadline for filing such applications and allowing fresh applications in cases of rejection due to wrong section code. Therefore, the assessee was given an opportunity to re-approach the CIT(E).

What were the facts?

The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT(E). The rejection was based on the application being filed under the wrong sub-section of Section 12A(1)(ac).

What were the issues?

Whether the rejection of registration application solely on the grounds of filing under a wrong sub-section is sustainable given the subsequent CBDT circular providing a remedy.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH

Hearing: 22.05.2024Pronounced: 22.05.2024

O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year 2023-24 is directed against the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 27.12.2023 rejecting the application for registration filled in Form 10AB seeking approval u/s. 12AB of the Income Tax Act, 1961 (hereinafter “the Act”). :- 2 -:

2.

The Ld. CIT(E) rejected the application for registration on the ground that the application was filed u/s. 12A(1)(ac)(ii) of the Act rather than u/s. 12A(1)(ac)(iii) of the Act.

3.

We have heard the arguments of both the sides and perused the relevant material available on record. It is noted that subsequent to the order of Ld. CIT(E), the Central Board of Direct Taxes has issued a Circular No.07/24 dated 25.04.2024 and has extended date for filing such applications up to 30.06.2024 for all such cases including the assessee. The relevant para of the circular is as under :

1.

4.1 Further, in cases where any trust, institution or fund has already made an application in Form No. lOAB, and where the Principal Commissioner or Commissioner has passed an order rejecting such application, on or before the issuance of this Circular, solely on account of the fact that the application was furnished after the due date or that the application has been furnished under the wrong section code, it may furnish a fresh application in Form No. 10AB within the extended time provided in paragraph 3(ii) i.e. 30.06.2024.

4.

Considering the subsequent development and in the interests of justice, we are of the view that the assessee should be given an opportunity to approach the Ld. CIT(E) for re-consideration of its application for registration u/s. 12AB of the Act in light of the CBDT :- 3 -:

Circular, supra. In view of the above, the appeal of the assessee is dismissed as infructuous.

5.

In the result, the appeal filed by the assessee is dismissed as infructuous.

Order pronounced in the open Court on 22nd May, 2024. (यस यस िव"ने" रिव) (जगदीश) (Jagadish) (SS Viswanethra Ravi) लेखा लेखा सद"य लेखा लेखा सद"य सद"य /Accountant Member सद"य सद"य / Judicial Member "याियक "याियक सद"य "याियक "याियक सद"य सद"य चे"ई/Chennai, "दनांक/Dated: 22nd May, 2024. EDN/-

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