Trust mistakenly applies for Registration u/s 12A (1)(ac)(ii) instead of 12A(1)(ac)(iii) of Income Tax Act: ITAT directs Readjudication [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal ( ITAT ) sets aside the order of the Commissioner of Income Tax (Exemption) [(CIT(E)] and directs re-adjudication after a trust mistakenly applies for registration under Section 12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Income Tax Act, 1961.

The appeal filed by the assessee is barred by limitation by 135 days. The impugned order passed by the CIT (Exemption) dated 04.03.2023 was served on the assessee on 04.03.2023. The appeal has to be filed on or before 03.05.2023 but it was actually filed on 15.09.2023 with a delay of 135 days.

The assessee trust was created on 21.09.2021 as a charitable trust for providing relief to the poor and to provide education and medical relief. The assessee filed application for registration in Form No.10A under Section 12A(1)(ac)(ii) of the Income Tax Act, on 30.05.2022 and consequently, Form No.10AC was issued on 20.06.2022 granting provisional registration under Section 12A(1)(ac)(vi) of the Income Tax  Act for the AY 2023-24 to AY 2025-26. Subsequently, on 03.09.2022, six months prior to expiry of provisional registration, the assessee filed Form No.10AB seeking registration under Section 12A (1)(ac)(ii) of the Income Tax Act.

The bench noted that the assessee has simpliciter made a technical mistake in applying under Section 12A (1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Income Tax Act. It was informed to the Bench by the AR for the assessee that even now the assessee has filed fresh Form No.10AB seeking registration under Section 12A(1)(ac)(iii) of the Income Tax Act, which can also be considered. In our view, the same purpose will be served by adjudicating the same application.

Hence, the two member bench of the tribunal comprising Manoj Kumar Agarwal (Accountant member) and Mahavir Singh (Vice President) set aside the order of CIT (Exemption) and remand the matter back to his file for fresh adjudication, either considering the subsequent application of assessee under Section 12A (1)(ac)(iii) of the Income Tax Act or he can call a fresh application from the assessee. Accordingly, the appeal filed by the assessee was allowed for statistical purposes.

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