The Orissa High Court restored application for registration under Section 12AB of the Income Tax Act, 1961 as there was filing of application in wrong section code in Form-10A.
R.P. Kar, the Senior Counsel appearing on behalf of the Petitioner further submits that the Petitioner filed application in wrong section code in Form-10A pertaining to the Assessment Year 2022-23. The application was rejected by the impugned order dated 16.03.2023. He prayed to set aside the impugned order and direct the Opposite Parties-Revenue to accept the Form-10A.
The Senior Counsel appearing on behalf of the petitioner demonstrated that under cover of notice dated 05.12.2022 under Annexure-6, certain requisitions were made for furnishing information. The requisition and compliance were both digitally done. He then drew attention to impugned order to submit that there is no dispute regarding information received by opposite parties-Revenue.
A Division Bench of Justices Dr BR Sarangi and G Satapathy observed that “It appeared that the Managing Trustee of Parmeswari Bai Memorial Trust has furnished explanation sought for regarding Form-10A. Though, the explanation is stated to have been furnished to the Commissioner of Income Tax (Exemption), Income Tax Department, Hyderbad, the same has not been considered in its proper prospective by assigning reason, which is one of the essential facets of principles of natural justice. However, vide order dated 16.03.2023 passed by the CIT (Exemption), Hyderbad, the application of the Petitioner-Assessee for registration under Section 12AB of the Income Tax Act stood.”
“In the circumstances, the order dated 16.03.2023 being without reason as is apparent from the record, stands set aside and it is directed that the application for registration under Section 12AB is restored for reconsideration by the Commissioner of Income Tax (Exemption), Hyderbad. Needless to say that the said authority before taking decision may afford a reasonable opportunity of hearing to the assessee”the Court noted.
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