Application For Registration In Form No. 10AB Should Be Construed As If Filed U/s 12A(1)(Ac)(I): Kolkata ITAT

The Bench of the ITAT comprising Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that, “basically application of the assessee ought to have been under section 12A, sub-clause (1)(ac)(i), where a regular registration for a period of five years ought to be granted. Automatically dismissal of the applications of assessees resulted on account of wrong mention of the clause in the application form. Had an opportunity would have been provided in the system, the assessees could have rectified this application and mentioned correct provision that these applications be treated under section 12A(1)(ac)(i).” (Para 4)

As per the brief facts of the case, the assessee is an existing trust registered u/s 12AA. After introduction of the new Scheme, the assessees have applied for registration, which applications were allowed by the Department and copy of the order is available in Form No. 10AC. The Registrations were granted provisionally from 23rd September, 2021. Meanwhile the assessees have filed one more application in Form No. 10AB. In the application at Serial No. 2, there is a narration – “02 Sub-clause (iii) of clause (ac) of sub-section (1) of section 12A”.

On perusal of the application, Commissioner formed an opinion that this clause is meant for grant of provisional registration. As provisional registration has been already granted. The assessees are required to file an application within six months prior to expiry of period of the provisional registration or within six months from the commencement of activity, whichever event occurs first. Consequently, the CIT(E) rejected the application filed by the assessee for grant of registration u/s. 12AB(1)(ac).

The Bench noted that application of the assessee ought to have been u/s 12A, sub-clause (1)(ac)(i), where a regular registration for a period of five years ought to be granted.

The Bench highlighted the provision mentioned u/s 12A(1)(ac)(iii) that, “where the trust or institution has been provisionally registered under section 12AB, at least six months prior to expiry of period of the provisional registration or within six months of commencement of its activities, whichever is earlier”.

The Bench observed that the applications are to be considered on merit for grant of registration for a fixed period, not be treated to grant a provisional registration.

Therefore, ITAT allowed the assessee's appeal.

Counsel for Appellant/Taxpayer: P. K. Ray

Counsel for Respondent/Department: Rakesh Kumar Das

Case Title: Santiniketan Sishutirtha verses Commissioner of Income Tax

Case Number: ITA No.961/Kol/2023

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