AMMAKILLIKUDU,ALUVA V. CIT (EXEMPTION), KOCHI

ITA 890/COCH/2024

AI Insights

The case involves Ammakillikudu Door, a charitable trust, appealing against the decision of the CIT(Exemption), Kochi, which denied their registration under section 12A of the Income Tax Act. Initially, the trust was granted registration from A.Y 2022-23 to A.Y 2026-27 under a different clause but later applied under section 12A(1)(ac)(iii) by mistake. The CIT(Exemption) rejected this application due to several discrepancies noted in the trust deed and the application forms. The Tribunal, after hearing the arguments, decided to set aside the CIT(Exemption)'s order and remand the case for a fresh decision, emphasizing the need for a thorough re-examination of the technical errors in the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633610 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURESH SIVANANDAN IRS
• Assessee Lawyers: SHINU J PILLAI
• Keywords: Set aside; Charitable institution
• Section: 12AA; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Sonjoy Sarma, Judicial Member ITA No.890/Coch/2024 Assessment Years: 2025-26 Ammakillikudu Door 345, Ward 20, Opposite BSNL office, Pipeline Road Aluva, Kochi – 683101. PAN : AAITA3263H. v. CIT(Exemption), Kochi (Appellant) (Respondent) Appellant by : Shri Shinu J Pillai, Adv Respondent by : Shri Suresh Sivanandan IRS, CIT-DR Date of Hearing : 04.06.2025 Date of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 29.08.2024 of the CIT(Exemption), Kochi [hereinafter referred to as ‘CIT(E)’] denying the assessee’s registration u/s 12A of the Act. 2. Brief facts of the case are that the assessee is a charitable trust. Form no.10AC was issued on 01.10.2021 granting registration u/s 12A(1)(ac)(i) of the Act from A.Y 2022-23 to A.Y 2026-27. The assessee mistakenly filed application u/s 12A(1)(ac)(iii) of the Act. ITA No.890/Coch/2024 Ammakillikudu 2 3. The CIT(E) rejected the application in Form 10AB filed for registration u/s 12A by observing as under: “The assessee filed form No.10AB seeking registration u/s. 12A of the Act on 21/2/2024. In response to the hearing notice, Sri. Dijo Philip Mathew, FCA appeared on authorization and filed details. The case is discussed with him. Following discrepancies are noted. 1. The trust deed is not having the following mandatory clauses: i. It will not function in the nature of conducting any business activity and not for the purpose of profits. ii. In case the Trust/Society Institution/Organization intend to run any business, then it will satisfy the conditions stipulated in Section 11(4A) and proviso to Section 80G(5)(1) of the Income tax Act, 1961. 1. The trust deed allows investment in co-operative societies, which is not proper. 2. The applicant has obtained regular registration in Form 10AC under sub clause (i) of clause (ac) of section 12A(1) whereas the applicant is not registered under section 12A [as it stood immediately before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] or under section 12AA [as it stood immediately before its amendment by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020)]. Therefore the registration u/s.12A obtained in form No.10AC and present application in Form No.10AB are erroneous and defective. Based on the above defects, the applicant was request to show cause as to why the application in Form 10AB filed under sub clause (iii) of clause (ac) of section 12A(1) should not be rejected and the registration u/s.12A obtained in form No.10AC should not be cancelled, on or before 5/8/2024. However, no reply has been filed by the assessee till date. As such application in form No.10AB is rejected. Further, based on the defect pointed out in item no.3 above, the registration u/s.12A of the Act obtained in form No.10AC is also cancelled.” ITA No.890/Coch/2024 Ammakillikudu 3 4. After hearing both the parties and going through the records, we find that the assessee has made a technical mistake in applying u/s 12A(1)(ac)(iii) of the Act, hence, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) for fresh adjudication in accordance with law. 5. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 10.06.2025. Sd/- (Inturi Rama Rao) Sd/- (Sonjoy Sarma) Accountant Member Judicial Member Cochin, Dated:10.06.2025. RS Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), Concerned. 4. The CIT Concerned. 5. The DR, ITAT, Cochin. 6. Guard File. Asst. Registrar/ITAT, Cochin "