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Assessee by Shri Hiren Vepari, CA and Ms. Himali Mistri CA Department by Shri Ashok B. Koli (CIT-DR) Date of Institution of Appeal 12/06/2023 Date of hearing 11/07/2023 Date of pronouncement 17/07/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee-trust is directed against the order of learned Commissioner of Income Tax, (Exemptions), Ahmedabad [in short the ld. CIT(E)] dated 30/05/2023 in rejecting the application of assessee- trust for registration under Section 12AB of the Income Tax Act, 1961 (in short, the Act). The assessee has raised following grounds of appeal: “(1) The CIT(Exemption) was not justified in rejecting application u/s 12A particularly when the appellant satisfied all the necessary conditions. (2) The CIT(Exemption) was driven by extraneous considerations while rejecting the application. (3) All of the above grounds are prejudice to one another.
The Man Made Textiles Research Assocation Vs CIT(E) (4) The appellant craves leave to add, alter or vary any of the grounds of appeal
.”
2. Brief facts of the case are that the assessee is filed an application for registration under Section 12AB of the Act in Form 10AB in accordance with Rule 17A of the Income Tax Rules, 1962, (in short, the Rules) on 22/11/2022. The assessee furnished necessary details at the time of filing application electronically/online including copy of original registration alongwith memorandum of association/constitution deed/trust deed of assessee. The assessee also furnished copy of certificate of registration and PAN. On perusal of details of assessee in different documents, the ld CIT(E) found that as per PAN/ Form-10AB the name of assessee “THE MAN MADE TEXTILES RESEARCH ASSOCAITION”, however in the copy of constitution of trust/MOA, the name of assessee is mentioned as “MAN MADE TEXTILES RESEARCH ASSOCIATION”. Similarly, in the copy of certificate of registration the name is appearing as “MAN MADE TEXTILES RESEARCH ASSOCIATION”. In the bank account with YES bank, the name of account holder is mentioned as “MAN MADE TEXTILES RESEARCH ASSOCIATION”. Thus, there is a mismatch in the name of PAN database vis-à-vis certificate of registration. The ld. CIT(E) was of the view that the assessee has not furnished required details. In absence of requisite details, the verification of object of trust could not be verified. The ld. CIT(A) rejected the application of assessee for want of compliance by holding that Section The Man Made Textiles Research Assocation Vs CIT(E) 12AB of the Act makes it clear that before granting registration, he has to satisfy himself about genuineness of the activities of the trust and to verify that activities are in consonance with object of the trust or institution. Aggrieved by the order of ld. CIT(E), the assessee has filed present appeal before this Tribunal.
We have heard the submissions of learned Authorised Representative (ld. AR) of the assessee and the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue. The ld. AR of the assessee submits that the assessee furnished complete details while filing/uploading required details at the time of filing of application. The ld. AR of the assessee submits that they have furnished copy of trust deed, registration of trust deed with Charity Commissioner, Surat bearing registration No. F/232/Surat. Same registration number is mentioned in all evidences of assessee trust about its activities. The ld. AR of the assessee submits that the assessee is a charitable and religious trust. The trust is in existence from 1977. There is no change in the object and activities of the assessee-trust. The assessee was granted provisional registration certificate under section 21A(1)(ac)(iii) on 01/12/2022. The name of trust was wrongly mentioned due to inadvertence as “THE MAN MADE TEXTILES RESEARCH ASSOCIATION”, which may be read as “MAN MADE TEXTILES RESEARCH ASSOCIATION”. Different nomenclature due to inadvertence mistake. There is no change The Man Made Textiles Research Assocation Vs CIT(E) in the name of assessee trust rather due to mismatch of name due to inadvertence, use of article “THE” while quoting the name of assessee- trust. The ld. CIT(E) rejected the application instead of considering it in a broad way. The ld. AR of the assessee submits that he has filed copy of PAN card of assessee, registration certificate with Assistant Charity Commissioner, Surat having registration No. F/232/Surat. The assessee is filing its return of income by with PAN AAATT4304L. The audited financial statement also mentioned the registration number and the name of assessee trust and PAN. The trust deed also clearly mentioned the name of assessee trust. The ld. AR of the assessee submits that the application of assessee was rejected in a mechanical way without seeking any clarification for explanation from the assessee. The ld. AR of the assessee submits that the assessee has fulfilled all the conditions and appeal of assessee may be allowed.
In alternative submission, the ld. AR of the assessee submits that the matter may be restored back to the file of ld. CIT(E) with direction to consider the application of assessee afresh and to pass he order in accordance with law. The ld AR for assessee submits that he is ready to make correction in the Form-10AB and at other places with the satisfaction of ld CIT(E).
On the other hand, the ld. CIT-DR for the revenue submits that there was a mismatch in various documents. The assessee has given different