KARNATAKA STATE DIPLOMA IN NURSING EXAMINATION BOARD,BENGAURU V. COMMISSIONER OF INCOME TAX(EXEMPTIONS), BENGALURU

ITA 161/BANG/2025

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The case involves the Karnataka State Diploma in Nursing Examination Board, which appealed against the cancellation of their registration under section 12AB of the Income Tax Act, 1961, by the CIT (Exemptions), Bangalore. The CIT had cancelled the registration citing that the assessee had incorrectly applied under section 12A(1)(ac)(i) instead of the required section 12A(1)(ac)(ii) due to a typographical error. The Tribunal noted a similar precedent in the case of Kimaya Ashram Charitable Trust, where it was decided to remand the matter back to the CIT for reconsideration under the correct section. The Tribunal directed the assessee to file Form 10AB for final registration within 30 days and emphasized the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633062 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: Kimaya Ashram Charitable Trust Vs. Commissioner of Income Tax (Exemption)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINANDINI DAS
• Assessee Lawyers: PRASANNA N URALA
• Keywords: Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"ITA No.161/Bang/2025 Karnataka State Diploma in Nursing Examination Board, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’BENCH: BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.161/Bang/2025 Assessment Year : NA Karnataka State Diploma in Nursing Examination Board 1st Floor, Lbrary Block BMRCI Campus K.R. Road Bangalore 560 002 PAN NO : AAKFK6557A Vs. CIT (Exemptions) Bangalore APPELLANT RESPONDENT Appellant by : Sri Prasanna N Urala, A.R. Respondent by : Ms. Srinandini Das, D.R. Date of Hearing : 19.03.2025 Date of Pronouncement : 09.06.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This appeal at the instance of the assessee is directed against the order of the ld. CIT (E), Bangalore dated 27.12.2024 vide DIN & Order No. ITBA/EXM/F/EXM50/2024-25/1071632021(1) cancelling the registration granted u/s 12AB of the Income Tax Act, 1961 (in short “The Act”). 2. The assessee has raised the following grounds of appeal: ITA No.161/Bang/2025 Karnataka State Diploma in Nursing Examination Board, Bangalore Page 2 of 5 3. Brief facts of the case are that the assessee society is established under the Karnataka Societies Registration Act, 1960 on 1.4.1995 with the objectives of the preparation of professional nurses, providing high standard of nursing education and practice etc. The assessee is running nursing courses and conducting examinations. The assessee has been granted registration vide Unique registration No.AAKFK6557AE20216 dated 24.9.2021 for the period AY 2022-23 to AY 2026-27. 4. The ld. CIT(E) after a gap of more than 3 years found that the registration granted is not valid as the assessee had no earlier registration u/s 12A of the Act and therefore, the assessee should have applied for the provisional registration under section Code – 12A(1)(ac)(ii) of the Act instead of section Code 12A(1)(ac)(i) of the Act through which the assessee got present registration. As the assessee was never registered u/s 12A/12AA or any other approval as per the provisions of IT Act prior to the amendment brought in and therefore, the ld. CIT(E) held that the assessee’s application in form 10A quoting section code 01-12A(1)(ac)(i) obtaining registration ITA No.161/Bang/2025 Karnataka State Diploma in Nursing Examination Board, Bangalore Page 3 of 5 in form 10AC dated 24.9.2021 is not valid and accordingly cancelled the registration granted u/s 12A(1)(ac)(i) of the Act from the AY 2022-23 to AY 2026-27. 5. Aggrieved by the order ld. CIT(E), the assessee has filed the present appeal before this Tribunal. 6. Before us, ld. A.R. of the assessee vehemently submitted that the order passed by the ld. CIT(E), Bangalore without providing opportunity of being heard is illegal and bad in law as it is a gross violation of principles of natural justice. Further, the ld. A.R. of the assessee vehemently submitted that due to the typographical error, the application was furnished under section code 01-12A(1)(ac)(i) instead of 12A(1)(ac)(ii) of the Act. It is also submitted that under the identical facts & circumstances, the coordinate bench of the Tribunal in the case of Kimaya Ashram Charitable Trust Vs. Commissioner of Income Tax (Exemption) reported in (2025) 170 taxmann.com 376 (Pune-Trib.) has decided the issue in favour of the assessee and remanded the matter back to the ld. CIT(E) with a direction to treat the application of the assessee as filed under correct/desired section of I. Tax Act and considered the same for grant of registration u/s 12AB of the Act in accordance with law. 7. The ld. D.R. appearing from the side of revenue relied on the order passed by ld. CIT(E), Bangalore. 8. We have heard the rival submissions and perused the materials available on record. We find that the assessee Trust was never registered u/s 12A/12AA of the Act or any other approval as per the provisions of the Act prior to the amendment brought in and therefore, the assessee trust was required to file the application for registration by quoting section code 12A(1)(ac)(ii) instead of section ITA No.161/Bang/2025 Karnataka State Diploma in Nursing Examination Board, Bangalore Page 4 of 5 12A(1)(ac)(i) of the Act. Before us, the ld. A.R. of the assessee vehemently submitted that due to typographical error, the application for provisional registration was filed in by quoting wrong section code 01-12A(1)(ac)(i) of the Act. We take a note of the fact that ld. CIT(E), Bangalore has rejected the application of the assessee after a gap of more than 3 years on the sole basis of above technical error committed by the assessee trust. The assessee Trust has relied on the decision of coordinate bench of the Tribunal in the case of Kimaya Ashram Charitable Trust cited (supra) wherein under identical facts and similar circumstances, the Tribunal has allowed the appeal of the assessee and remanded the matter back to the file of ld. CIT(E) with a direction to treat the application of the assessee as filed under correct/desired section of the Act and considered the same for grant of registration in accordance with law. It is evident that assessee had committed a technical mistake while filing the application for registration by quoting section code 12A(1)(ac)(i) instead of 12A(1)(ac)(ii) of the Act. 8.1 Considering the totality of the facts of the case and respectfully following the above decision of the Tribunal, we find force in the argument of ld. Counsel of the assessee and accordingly we deem it fit & appropriate to remand the matter back to the file of the ld. CIT(E), Bangalore with a direction to decide the issue afresh after treating the original application for registration as filed by the assessee under the correct/desired section i.e. section 12A(1)(ac)(ii) of the Act. The assessee is also hereby directed to file Form 10AB for final registration within 30 days from the date of the service of this Order. Thereafter the ld. CIT(E) after receiving the application in form 10AB by the assessee Trust shall call for the necessary documents/records/financials/Reports etc to satisfy himself/herself about the genuineness of the Trust. Needless to say ITA No.161/Bang/2025 Karnataka State Diploma in Nursing Examination Board, Bangalore Page 5 of 5 a reasonable opportunity of being heard must be granted to the assessee. It is ordered accordingly. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 9th June, 2025 Sd/- (Laxmi Prasad Sahu) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 9th June, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "