HENSLA HARA PARBATI CLUB,PURULIA vs. CIT(EXEMPTION), KOLKATA

The instant appeal filed by the assessee is directed against the order passed by ld. Commissioner of Income-tax (Exemption), Kolkata [in short ld. ‘CIT (Exemption)’] in relation to registration applied u/s 12AB(1)(b)(iii) of the Income Tax Act, 1961 (in brevity the ‘Act’) dated 30.01.2024.

The soul grievance of the assessee is that ld. CIT (Exemption) failed to grant registration u/s 12AB of the Act. The ld. Counsel for the assessee submitted that ld. CIT (Exemption) without going into the merits of the case has rejected the application of the assessee on the ground that application I.T.A. No.: 496/KOL/2024 Assessment Year: N.A. Hensla Hara Parbati Club. filed by the assessee is premature ignoring the reality that assessee has applied for permanent registration u/s 12A(1)(ac)(iii) of the Act in Form-10AB. 3. We have perused the impugned order which reads as under: “The assessee has filed an application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 in Form No. 10AB. This application was found to be prima-facie non-maintainable and accordingly vide letter dated 08.12.2023, certain clarifications were sought from the assessee. In response, assessee submitted its reply. However it is observed from the submission that the application filed by the assessee is premature as the earlier order in Form no. 10AC is still valid for five (5) years i.e. from 2022- 23 to A. Y. 2026-2027. Accordingly the application filed by the assessee is treated as non-maintainable and for statistical purpose the application filed by the assessee is treated as ‘rejected’. However, no adverse inference is drawn against the assessee.” 3.1. On perusal of the above order, it reveals that ld. CIT (Exemption) did not adjudicate the application on merit though several documents with regard or essential for granting permanent registration has been filed by the assessee before this Tribunal. The ld. CIT (Exemption) has only observed that the application of the assessee is premature and accordingly rejected. It is pertinent to mention here that the assessee has filed an application for u/s 12A(1)(ac)(iii) of the Act for permanent registration. Ld. CIT (Exemption) required to call for the documents and after satisfaction grant the registration but that has not been done by the ld. CIT (Exemption). Accordingly, the impugned order is set aside and the issues relegated to the ld. CIT (Exemption) for fresh adjudication. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 5th July, 2024. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 05.07.2024 Bidhan (P.S.)