JBS MEMORIAL EDUCATIONAL AND CHARITABLE SOCIETY,TRIVANDRUM V. CIT(EXEMPTION), KOCHI

ITA 1055/COCH/2024

AI Insights

The case involves multiple appellants, including Viswaprakash Educational and Charitable Trust, JBS Memorial Educational and Charitable Society, and St. Antonys Forance Church, who appealed against the orders of the Commissioner of Income Tax (Exemption), Kochi. The appellants sought registration under section 12A of the Income Tax Act but faced rejection due to a clerical error in selecting the correct sub-clause in their application forms. The Tribunal found the Commissioner's approach to be overly technical and not in the spirit of justice, leading to the decision to set aside the Commissioner's order and direct a fresh review of the applications.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360903 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VENI RAJ
• Assessee Lawyers: ARUN RAJ S.
• Keywords: Set aside; Charitable institution
• Section: 12A; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 1054/Coch/2024 Viswaprakash Educational and Charitable Trust .......... Appellant Vellayambalam, Sasthamangalam P.O. Thiruvananthapuram 695003 [PAN: AABTV8227D] ITA No. 1055/Coch/2024 JBS Memorial Educational and Charitable .......... Appellant Society Mount Carmal Church, Mariapuram, Neyyattinkara, Thiruvananthapuram 695003 [PAN: AAFAJ6296F] ITA No. 1056/Coch/2024 St. Antonys Forance Church .......... Appellant Kattakode, Kattakada, Thiruvananthapuram 695003 [PAN: AATTS7537F] vs. Commissioner of Income Tax (Exemption) .......... Respondent Aayakar Bavan, Old Rly. Station Road, Ernakulam Appellant by: Shri Arun Raj S., Advocate Respondent by: Smt. Veni Raj, CIT-DR Date of Hearing: 20.05.2025 Date of Pronouncement: 22.05.2025 2 ITA No. 1054/Coch/2024 Viswaprakash Educational and Charitable Trust O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the separate orders of the Commissioner of Income Tax (Exemption), Kochi dated 24.09.2024 & 25.09.2024 2. Since identical issues are involved in these appeals, they are heard together and disposed of by this common order. For the sake of convenience and clarity the facts relevant to the appeal bearing ITA No. 1056/Coch/2024 for are stated herein. 3. Brief facts of the case are that the appellant is a charitable trust found with the object of imparting education. The appellant had applied for provisional approval/registration u/s. 12(1)(ac) of the Act on 31.03.2021 and provisional registration was granted on 27.05.2021. The appellant trust applied for regular registration u/s. 12A of the Act on 28.03.2024 in Form 10B. However, while submitting the application in Form 10B wrong sub-clause of clause (ac) of section 12A was selected, i.e. instead of sub-clause (iii) sub- clause (ii) was selected. The Commissioner of Income Tax (Exemption), on noticing the above discrepancy had called upon the appellant trust to explain as to why the application should not be rejected. In response to the show cause notice the appellant applied for rectification of the mistake in the selection of sub-clause of clause (ac) of Section 12A of the Act. However, the Commissioner 3 ITA No. 1054/Coch/2024 Viswaprakash Educational and Charitable Trust of Income Tax (Exemption) had chosen to reject the application vie the impugned order. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. We have heard the rival contentions and perused the material available on record. On mere reading of the impugned order it would be very clear that the Commissioner of Income Tax (Exemption) denied grant of registration u/s. 12A(1)(ac) merely on the ground that the appellant had chosen a wrong sub-clause of clause (ac) of section 12A of the Act. The approach adopted by the Commissioner of Income Tax (Exemption) is too hyper technical. When the appellant trust submitted a rectification application in response to the show cause notice given by him, he ought to have taken on record the correct application and processed the application in accordance with law. Therefore, in order to meet the ends of justice, the order of the Commissioner of Income Tax (Exemption) is hereby set aside and direct the Commissioner of Income Tax (Exemption) to dispose of the application afresh taking into consideration the correct application form submitted by the assessee in response to the show cause notice. 6. Since identical issued are involved in the other two appeals, the above findings are mutatis mutandis apply to these appeals also. 4 ITA No. 1054/Coch/2024 Viswaprakash Educational and Charitable Trust 7. In the result, appeals filed by the assessee stand partly allowed. Order pronounced in the open court on 22nd May, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 22nd May, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "