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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: MS. MADHUMITA ROY & SHRI B.M. BIYANI
Per B.M. Biyani, A.M.:
This appeal filed by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Bhopal [“Ld. CIT(E)”] dated 28.01.2021 u/s 12AA(1)(b)(ii) of the Income Tax Act,1961 [“the Act”].
The assessee has raised following grounds:
“1. In the facts and circumstances of the case the ld. CIT(E) Bhopal erred in rejecting application filed for registration u/s 12A(a) of the Act. 2. In the facts & circumstances of the case the ld. CIT(A) Bhopal erred in rejecting application filed for registration u/s 12A(a) considering the same as filed as per provision of section 12AB which will be effective from 01.04.2021.
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In the facts & circumstances of the case the ld. CIT(A) Bhopal erred in treating application filed in form no. 10A dated 10.06.2020 as premature through the same was filed u/s 12A(a) of the Act and not u/s 12AB. 4. In the facts & circumstances of the case the ld. CIT(A) Bhopal erred in rejecting the valid application filed in form No.10A for registration u/s 12A(a) of the Act to obtain registration w.e.f. 01.04.19 relevant to AY 2020-21.” 3. The assessee is a charitable society engaged in imparting education. It filed application for registration in Form No. 10A on 10.06.2020 u/s 12A(1)(aa)/(ab) for grant of registration u/s 12AA w.e.f. 01.04.2019 which was registered by revenue as Application No. CIT-Exemption Bhopal/2020- 21/12AA/10225. Taking cognizance of the Application, the Ld. CIT(E) issued notice dated 07.10.2020 calling for several details, documents and clarifications on the activities of society, certified copies of annual accounts, copies of memorandum and bye-laws, various declarations, etc. for examining the objects and activities of the assessee. In response, the assessee e-filed all those details, documents and clarifications in a letter running over 74 pages, a copy of which is placed at Page No. 16 to 89 of the Paper-Book and the same were acknowledged by the e-filing website of department, copies of acknowledgements being placed at Page No. 93 to 97 of the Paper-Book. This way the application dated 10.06.2020 filed by the assessee was dealt with by Ld. CIT(E) in a manner prescribed in the act. But, however, vide order dated 28.01.2021, the Ld. CIT(E) rejected the application by observing as under:
“Order under section 12AA(1)(b)(ii) of the Income-tax Act, 1961
In this regard, the provision of section 12AB of the Income-tax Act is effective from 01 April 2021. Your application filed in Form 10A dated 10/06/2020 is premature and hence invalid which cannot be processed on system as of now. Therefore, the same is rejected.” Page 2 of 5
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The assessee being aggrieved by the order of Ld. CIT(E), has filed this appeal before us.
Assailing the order of Ld. CIT(E), Ld. AR submitted that the assessee has filed application on 10.06.2020 u/s 12A(1)(aa) for grant of registration u/s 12AA w.e.f. 01.04.2019. Thereafter, the Ld. CIT(E) conducted proceeding, issued notice dated 07.10.2020, required the assessee to file details, documents and clarifications and the assessee also complied with the requirement of notice. Ld. AR submitted that despite conducting proceedings in the manner prescribed in section 12AA, the Ld. CIT(E) made a mis-understanding that the application is filed for grant of registration u/s 12AB i.e. a new procedure for grant of registration coming into force from 01.04.2021 and based on such mis-understanding, the Ld. CIT(E) rejected the application filed by the assessee. Ld. AR submitted that the rejection of application is patently wrong. Having submitted this, the Ld. AR also made submissions on the merits of application. Firstly Ld. AR argued that the assessee has submitted all details, documents and clarifications as required by Ld. CIT(E) in the notice dated 07.10.2020 and the Ld. CIT(E) has not raised any doubt on the objects and activities of the assessee during the intervening period i.e. from 07.10.2020 to 28.01.2021. Secondly the Ld. AR submitted that in terms of the new procedure prescribed in the Income-tax Act, 1961 for grant of registration u/s 12A(1)(ac)(vi) read with section 12AB from 01.04.2021, the revenue has already granted registration to the assessee vide Order dated 27.05.2021 in Form No. 10AC w.e.f. 01.04.2021. Ld. AR submitted that the registration u/s 12AB w.e.f. 01.04.2021 has been granted for AY 2021-22 onwards after considering the application of the assessee and the material held on record. Ld. AR submitted that grant of registration u/s 12AB by Ld. CIT(E) is sufficient enough to demonstrate that there is no doubt about the objects and activities of the assessee. According to Ld. AR, therefore, the assessee certainly deserves to get registration u/s 12AA w.e.f. 01.04.2019 as applied for. With these submissions, Ld. AR prayed that a clear-cut direction should be given to Ld. CIT(E) to grant
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registration from 01.04.2019 as applied for by the assessee in application dated 10.06.2020. Ld. DR could not controvert the submissions of Ld. AR.
We have considered the submissions of parties and also perused the material held on record. We have paid attention to Page No. 84 of the Paper- Book where a copy of the application dated 10.06.2020 in Form No. 10A filed by the assessee is placed. On perusal of the same, we observe that the said Form No. 10A has following title: “Application for registration of charitable or religious trust or institution under clause (aa) or clause (ab) of sub-section (1) of section 12A of the Income-tax Act, 1961”
Thus, it is very much clear that the assessee has filed application in Form No. 10A u/s 12A(1)(aa)/(ab). We further observe that section 12A(1)(aa)/(ab) are the provisions for grant of registration u/s 12AA and not under section 12AB as understood by Ld. CIT(E). We further observe that the section 12AB prescribes a new procedure for registration and has come into force from 01.04.2021. We also observe that the registration u/s 12AB is dealt with by section 12A(1)(ac) and not by section 12A(1)(aa)/(ab). Therefore, by filing application u/s 12A(1)(aa)/(ab) the assessee has certainly sought registration u/s 12AA and not u/s 12AB. It seems that the Ld. CIT(E) has mistakenly understood the assessee’s application u/s 12AB and dismissed the same as pre-mature. Hence the impugned order dated 28.01.2021 passed by Ld. CIT(E) is unjustified and deserves to be quashed. Going further, we also find strength in the arguments of Ld. AR that there remains no scope for doubt on the objects and activities of the assessee particularly when the Ld. CIT(E) has granted registration u/s 12AB in Form No. 10AC w.e.f. 01.04.2021. Moreover the Ld. DR has not controverted the facts and submissions made by Ld. AR. Considering these facts and applicable law, we are of the view that the assessee deserves registration u/s 12AA w.e.f. 01.04.1999.
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In view of above discussion, we quash the order dated 28.01.2021 passed by Ld. CIT(E) and direct the Ld. CIT(E) to grant registration to the assessee u/s 12AA w.e.f. 01.04.1999 as applied for. Accordingly, we allow the Grounds raised by the assessee.
In the result, this appeal of assessee is allowed.
Order pronounced as per Rule 34 of I.T.A.T. Rules 1963 on 29.06.2022.
Sd/- Sd/-
(MADHUMITA ROY) (B.M. BIYANI)
Judicial Member Accountant Member
Indore, Dated : 29th June, 2022 Patel/ Sr. P.S. Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore 1. Date of taking dictation 2. Date of typing & draft order placed before the Dictating Member 3. Date on which the approved draft comes to the Sr. P.S./P.S. 4. Date on which the fair order is placed before the Dictating Member for pronouncement 5. Date on which the file goes to the Bench Clerk 6. Date on which the file goes to the Head Clerk 7. Date on which the file goes to the Assistant Registrar for signature on the order 8. Date of dispatch of the Order
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