CIT(EXMP), KOLKATA. , KOLKATA V. BARA-URMA SAMAJ KALYAN SAMITY. , PURULIA

MA 30/KOL/2024

AI Insights

The case involves the Bara Urma Samaj Kalyan Samity, which applied for provisional registration under section 12A(ac)(iii) of the Income Tax Act, 1961, despite already having a regular registration under section 12A(1)(ac)(i). The CIT(Exemption) initially dismissed the application as infructuous, leading to an appeal by the Samity. The Tribunal's earlier decision was based on a misunderstanding of the registration status, which was clarified through a subsequent Miscellaneous Application by the Revenue. The Tribunal, upon reviewing the correct facts and legal provisions, dismissed the appeal of the Samity, affirming that the application for provisional registration was unnecessary and incorrect.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35963 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12A; 10; 80G

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member & Shri Pradip Kumar Choubey, Judicial Member] M. A No. 30/Kol/2024 (Arising out of I.T.A. No. 963/Kol/2023) Assessment Year: NA CIT(Exemption), Kolkata Vs. Bara Urma Samaj Kalyan Samity (PAN: AABAB 2444 B) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ I.T.A. No. 963/Kol/2023 Assessment Year: NA Bara Urma Samaj Kalyan Samity (PAN: AABAB 2444 B) Vs. CIT(Exemption), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 14.02.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 27.02.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri P. K. Ray, Advocate For the revenue / राजèव कȧ ओर से Shri Sailen Samadder, Addl. CIT Sr. D.R 2 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity ORDER / आदेश Per Pradip Kumar Choubey, JM: The present Miscellaneous Application is directed at the instance of Revenue pointing out an apparent error in the order of the Tribunal dated 30.11.2023 passed in ITA No. 963/Kol/2023. 2. The Tribunal has recorded the following finding in the above order:- “5. A perusal of the above orders would reveal that ld. CIT(Exemption) did not adjudicate the applications on merit. He simply treated the applications as infructuous on the ground that the assessees are already enjoying registration. It is pertinent to mention that clause (c) of section 12AB, sub-section (1) provides for grant of provisional registration for a period of three years from the assessment year from which the registration is sought. The assessees are having provisional registration but they have applied grant of registration under section 12AB(1), clause (b) and nothing else. Ld. Commissioner was required to call for the documents and information satisfies himself and then grants the registration, which is valid for five years. The application was meant for grant of registration and not for provisional. Therefore, ld. CIT has misconstrued the application itself and erroneously dismissed them by treating premature in nature. The impugned orders are set aside and the issues are relegated to the ld. CIT (Exemption) for fresh adjudication.” 3. The ld. CIT(Exemption) appeared before us, in order to give assistance to the Bench for appreciating the controversy. It has been pointed out that there is no dispute with regard to the fact that the assessee enjoyed registration before beginning of the new regime of registration from April, 2021. The ld. CIT(Exemption) placed on record copy of Form No. 10AC vide which registration to the assessee was granted as per section 12A(1)(AC)(i). Thereafter he brought to our notice a Notification No. 30 of 2021 and submitted that as per this Notification, every assessee, who are entitled for registration under section 12A, was required to fulfil requisite Form contemplated in the Rule 17A. Such form is to be processed by CPC Bengaluru. We deem it appropriate to take note of this Notification, which reads as under:- MINISTRY OF FINANCE 3 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 1st April, 2021 INCOME – TAX S.O. 1443(E).—In exercise of the powers conferred by clause (i) of sub-rule (1), sub-rule (5) and sub-rule (6) of rule 2C of the Income tax Rules, 1962 (“the Rules”), sub-rule (1), sub-rule (5) and sub-rule (6) of rule 5CA of the Rules, clause (a) of sub-rule (1), sub-rule (5) and sub-rule (6) of rule 11AA of the Rules and clause (i) of sub-rule (1) , sub-rule (5) and sub-rule (6) of rule 17A of the Rules, the Central Board of Direct Taxes hereby authorizes the Director of Income Tax(Centralized Processing Centre), Bengaluru and Commissioner of Income-Tax (Exemption), Bengaluru, for the following purposes, namely,- (i) for receiving applications for provisional registration or registration or provisional approval or approval or intimation in Form 10A under clause (i) of sub-rule (1) of rule 2C of the Rules, sub-rule (1) of rule 5CA of the Rules, clause (a) of sub- rule (1) of rule 11AA of the Rules or clause (i) of sub-rule (1) of rule 17A of the Rules; (ii) for passing order granting provisional registration or registration or provisional approval or approval in Form 10AC under sub-rule (5) of rule 2C of the Rules, sub-rule (5) of rule 11AA of the Rules or sub-rule (5) of rule 17A of the Rules. (iii)for issuing Unique Registration Number (URN) to the applicants under sub-rule (5) of rule 2C of the Rules, sub-rule (5) of rule 5CA of the Rules, sub-rule (5) of rule 11AA of the Rules or sub-rule (5) of rule 17A of the Rules. (iv) for cancelling the approval granted in Form 10AC and Unique Registration Number (URN) under sub-rule (6) of rule 2C of the Rules, sub-rule (6) of rule 5CA of the Rules, sub-rule (6) of rule 11AA of the Rules or sub-rule (6) of rule 17A of the Rules. 2. This amendment will come into effect from the date of Notification in the Official Gazette. [Notification No. 30 /2021/F. No. 370142/4/2021-TPL] NEHA SAHAY, Under Secy. (Tax Policy & Legislation Division)”. 4. On the strength of this Notification, ld. CIT(Exemption) has pointed out that when application in Form 10A was submitted by the assessee, then registration in Form 4 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity No. 10AC was issued to it. Against Column No. 6, 7 & 8 of this Form, the registration has been granted to the assessee under sub-clause (i) of clause (ac) of sub-section (1) of section 12A. The expression mentioned against Column 6 to 8 of this Form reads as under:- 6 Section/sub-section/clause/sub- clause/proviso in which provisional registration is being granted 01-Sub-clause (i) of clause (ac) of sub-section (1) of section 12A 7 Date of provisional registration 28.05.2021 8 Assessment year or years for which the trust or institution is provisionally registered From AY 2022-23 to AY 2026-27 5. On the strength of this Certificate, he emphasized that originally the registration of the assessee was granted under sub-clause (i) of clause (ac) of sub-section (1) of section 12A means it was a regular registration for five years. The registration was valid from A.Y. 2022-23 to A.Y. 2026-27. This Certificate does create a confusion on account of narration mentioned in Column No. 7 of the Form, where it exhibits the “date of provisional registration”. Even at Column No. 8 also, the expression used “assessment year or years for which the Trust or Institution is provisionally registered” From A.Y. 2022-23 to A.Y. 2026-27. The ld. CIT(Exemption) pointed out that this issue has been resolved by the Board by issuance of a Circular bearing No. 11 of 2022 on 3rd June, 2022. The Board has clarified as under:- “5. In view of the above, it is hereby clarified that,- (i) the conditions contained in Form No. 10AC, issued between 01.04.2021 till the date of issuance of this Circular, shall be read as if the said conditions had been substituted with the conditions as provided in the Table 1 with effect from 1st April, 2022; Table 1 Sl. No Section Code Section under which order is passed Conditions 1 01 Clause (a) of sub-section (1) of section 12AB As per Annexure A 2 02 Clause (c) of sub-section (1) of section 12AB As per Annexure B 5 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity 3 03 to 06 Clause (i) of second proviso to clause (23C) of section 10 As per Annexure C 4 07 to 10 Clause (iii) of second proviso to clause (23C) of section 10 As per Annexure D 5 11 Clause (i) of second proviso to sub-section (5) of section 80G As per Annexure E 6 12 Clause (iii) of second proviso to sub-section (5) of section 80G As per Annexure F (ii) where due to technical glitches, Form No. 10AC has been issued during FY 2021- 2022 with the heading “Order for provisional registration” or “ Order for provisional approval” instead of “Order for registration” or “ Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or approval” and, in such cases where Form No. 10AC has been issued, - (a) under section code 01 (applications seeking re-registration),- (i) in the heading and in rows 6, 7, 9 and 10 the words ,“ provisional registration” shall be read as “registration”; (ii) in row 8 the word “ provisionally registered” shall be read as “registered”; (b) under section codes 03, 04, 05, 06 or 11 (applications seeking re- approval),- (i) in the heading and in rows 6, 7, 9 and 10 the words ,“ provisional approval” shall be read as “approval”; (ii)in row 8 the word “provisionally approved” shall be read as “approved”; (iii) row no 5 of Form No. 10AC (issued for all section codes) shall be read as “Unique Registration Number” instead of “Provisional Approval/ Approval Number” or “Provisional Registration/ Registration Number”, as the case maybe”. He pointed out that under sub-clause (ii) of clause 5 of this Circular, it has been contemplated that where due to technical glitches, Form No. 10AC has been issued during FY 2021- 2022 with the heading “Order for provisional registration” or “ Order for provisional approval” instead of “Order for registration” or “ Order for approval”, then all such Form No. 10AC shall be considered as an “Order for registration or 6 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity approval” and, in such cases where Form No. 10AC has been issued. Therefore, all registrations issued by CPC, Bengaluru under sub-clause (i) of section 12AC(1) would be construed as if granted for regular purposes. He further pointed out that the assessee has committed a second mistake by making an application under section 12A(ac)(iii) of the Income Tax Act, which is a clause meant for grant of provisional registration and all these issues have given a confusion. 6. With the assistance of ld. Representatives, we have gone through the record carefully. A perusal of the record would indicate that registration in Form 10AC was granted to the assessee under section 12A(1)(ac)(i), which is a regular registration. This was granted by the CPC, Bengaluru as duly authorized by the Board. A confusion arose on account of narrations available in Columns No. 6, 7, 8 & 9 of this form. This confusion has been removed by way of Circular of CBDT bearing No. 11 of 2022 (supra), meaning thereby assessee ought to have not filed any fresh application upto and until A.Y. 2026-27 came to an end. The assessee has under misconception of law applied in Form 10AB, which is meant for grant of a provisional registration. Once an assessee was enjoying a regular registration under section 12A(1)(ac)(i), then, there was no requirement to file fresh application in Form 10B. Faced with this situation, ld. CIT(Exemption) has rejected such application of the assessee by observing that it is premature. 7. It is pertinent to note that while dealing with the appeal of the assessee, we were not appraised with all these facts and circumstances more particularly Notification 30 and Circular No. 11 of the Board. It has not been demonstrated before us that original registration granted to the assessee, which is valid upto A.Y. 2026-27, was a regular registration being an old Trust enjoying registration under section 12A before inception of new regime. Therefore, we are satisfied that our order has been suffering with an apparent error. This application of the assessee in Form 10AB to ld. CIT(Exemption) for grant of provisional registration is basically an incorrect procedure and ld. CIT(Exemption) has rightly dismissed it. There should not be any appeal of the assessee 7 M.A No. 30/Kol/2024 (arising out of ITA No. 963 /Kol/2023) ITA No. 963/Kol/2023 Assessment Years: NA Bara Urma Samaj kalyan Samity before the Tribunal in the light of the valid original registration available to the assessee upto A.Y. 2026-27. We recall order dated 30th November,2023 passed in ITA No. 963/Kol/2023. The application of the Revenue is allowed and the appeal of the assessee is to be treated as dismissed. On expiry of the alleged registration, which is valid from A.Y. 2022-23 to A.Y. 2026-27, the assessee will be at liberty to proceed in accordance with law. 8. In the result, the Miscellaneous Application of the Revenue is allowed and the appeal of the assessee is dismissed. Order is pronounced in the open court on 27th February, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 27th February, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- CIT(E), Kolkata 2. Respondent – Bara Urma Samaj Kalyan Samity, At Bara Urma, Bara Urma B.O. Baraurmma, Purulia-723153 3. Ld. CIT(E)-Kolkata 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "