Issue of Registration u/s 12A Income Tax Act is Invalid as Registration has Already been granted: ITAT [Read Order]
The Tribunal held that once the relief sought by an appellant is granted through a separate administrative order, the appeal against the prior denial becomes non-maintainable
![Issue of Registration u/s 12A Income Tax Act is Invalid as Registration has Already been granted: ITAT [Read Order]](https://images.taxscan.in/h-upload/2025/07/31/2071230-issue-registration-income-tax-act-registration-itat-taxscan.webp "Issue of Registration u/s 12A Income Tax Act is Invalid as Registration has Already been granted: ITAT [Read Order]")
The Kolkata Bench of the Income Tax Appellate Tribunal ( ITAT ) dismissed an appeal filed by Bhaba, a Kolkata-based charitable entity, as infructuous. The tribunal held that since the Commissioner of Income Tax (Exemptions) had already granted the organisation registration under Section 12AB of the Income Tax Act, 1961, any pending issue regarding an earlier application under Section 12A...
The Kolkata Bench of the Income Tax Appellate Tribunal ( ITAT ) dismissed an appeal filed by Bhaba, a Kolkata-based charitable entity, as infructuous. The tribunal held that since the Commissioner of Income Tax (Exemptions) had already granted the organisation registration under Section 12AB of the Income Tax Act, 1961, any pending issue regarding an earlier application under Section 12A had become redundant.
The appellant, Bhaba, located at Baghajatin in Kolkata, had approached the tribunal against an order dated 25 January 2025, in which the Commissioner of Income Tax (Exemptions), Kolkata, had denied recognition under Section 12A of the Act. The denial prompted the organisation to escalate the matter to the ITAT, seeking redress.
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As proceedings commenced before the Tribunal, an important development came to light, that is the same Commissioner had, just days later on 28 January 2025, issued a fresh order granting the appellant registration under Section 12AB(1)(b) of the Act. This rendered the original grievance obsolete.
The bench, comprising George Mathan (Judicial Member) and Sanjay Awasthi (Accountant Member), noted that the subsequent granting of registration under Section 12AB had effectively resolved the issue raised in the appeal. The order of approval under Section 12AB clearly acknowledged the appellant's eligibility, with clause 11 of the approval order leaving no ambiguity about the status of recognition.
The bench observed that at the assessee has been granted registration vide order dated 28.01.2025. As the registration u/s 12A of the Act has already been granted to the assessee, the issue of registration u/s 12A of the Act no more survives before the Tribunal.
Section 12A of the Income Tax Act provides the procedural framework for institutions seeking exemption under Sections 11 and 12. Registration under this section is a prerequisite for claiming such benefits. With the introduction of Section 12AB under the amended regime, institutions are now required to transition or apply afresh for revalidation or new registration. This procedural overlap sometimes leads to technical confusion or dual filings, as was likely the case here. The grant of registration under Section 12AB essentially fulfilled the applicant's intent and voided the need for deliberation over the original denial under the older provision.
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The appellant was unrepresented during the hearing, and the absence of the appellant did not affect the outcome, as the bench proceeded to consider the available documents and records on merit.
The ITAT dismissed the matter and asserted that there was no longer a live controversy or issue requiring adjudication since the relief sought had already been granted by the revenue authority in a subsequent order.
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