Non-Compliance with Fresh Registration Requirement Following J&K Reorganisation: ITAT Rejects S. 12A Registration [Read Order]
The Tribunal found that the assessee had not furnished the necessary re-registration certificate and remanded the matters for fresh adjudication
The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) has refused to grant registration under section 12A of the Income Tax Act, 1961 and remanded the matter to the Commissioner of Income Tax (Exemptions) ( CIT(E) ) observing that the assessee society failed to furnish a fresh registration certificate as mandated after the reorganisation of the State of Jammu and Kashmir into a Union Territory.
The appellant Mata Bhuvaneshori Asthapan Committee, is a society registered under the Societies Registration Act 1998 under the hand of the Registrar of Society Jammu and Kashmir government.
The assessee had filed an application for registration under section 12A(1)(ac)(iii) before the CIT(E) and in order to verify the genuineness of the activities and the object of the society, queries has been raised in the e-filing portal and in absence of required documentary evidences the application for registration was held to be incomplete and deficient without material evidences.
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It was also directed under the act that the society has to be re-registered and on perusal of the documents it was found that the assessee society has not been re-registered under the said Act.
The counsel for the appellant U. K. Handoo, submitted that the assessee has already filed an application for renewal of registration (Re-registration) before the appropriate authorities of Jammu and Kashmir and the said application is under process.
It was further submitted that on account of reorganisation of the State of Jammu and Kashmir to Union Territory of the J & K, laws applicable for renewal of registration had also undergone some changes. However, it was submitted that the assessee is pursuing the matter with the appropriate authorities and the fresh registration certificate shall be submitted before the CIT(E) as soon as the same is obtained.
The appellant thereby requested remanding the matter back to CIT (E).
The counsel for the revenue M.S. Nethrapal, raised no objection if the matter is remanded back to the file of the CIT (E) for fresh adjudication after compliance with necessary deficiency.
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The Bench comprising Udayan Das Gupta (Judicial Member) and Brajesh Kumar Singh (Accountant Member) observed that since the re-registration certificate is pending the provisions of Rule 17A of the Income Tax Rules 1962 cannot be complied with, without which the application for registration under the Income Tax Act 1961 cannot be proceeded with.
Accordingly, the matter was remanded back to the file of the CIT (E) for consideration of the application for registration, after submission of the fresh registration certificate by the assessee.
A separate appeal was filed against rejection under section 80G. The same was also rejected as the application for registration under section 12A(1)(ac)(iii) had been denied. Consequently, the matter was remanded for fresh adjudication
Accordingly, both appeals were allowed for statistical purposes
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