PURBOTTAR PRADESHIYA MARWARI SANMELAN,GUWAHATI V. CIT (EXEMPTION), KOLKATA

ITA 75/KOL/2025

AI Insights

The case involves the Purbottar Pradeshiya Marwari Sanmelan, a social organization, which appealed against the decision of the Commissioner of Income Tax (Exemption), Kolkata. The Commissioner had rejected the organization's application for registration under section 80G(5)(ii) of the Income Tax Act, 1961, due to the selection of an incorrect section code in Form 10AB. The organization argued that this was a technical mistake and cited a precedent where a similar mistake was deemed curable. The Income Tax Appellate Tribunal (ITAT) agreed with the organization's position and restored the matter to the Commissioner for fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298599 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: misc
• Other Referred Cases: Raj Krishan Jain Charitable Trust vs. CIT(Exemption)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution
• Section: 12A

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “डी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” 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] I.T.A. No. 75/Kol/2025 Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan (PAN: AACAP 1739 J) Vs. CIT(Exemption), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 17.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 16.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Ashok Kumar Agarwal, A.R For the revenue / राजèव कȧ ओर से Shri S. Datta, CIT DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Exemption)- Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 21.12.2024 for AY 2025-26. 2 I.T.A. No. 75/Kol/2025 Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan 2. Brief facts of the case of the assessee is that the assessee is a social organization registered under Registrar of Societies Act, 1860. The assessee filed an application for registration u/s 80G(5)(ii) of the Act in Form no. 10AB. The form of the assessee has been rejected by the Ld. CIT(E ) by holding that the assessee had selected the wrong section code while applying from 10AB. 3. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. Counsel for the assessee challenges the impugned order thereby submitting that the assessee is registered as AOP u/s 12A(1)(ac)(i) under the Income Tax Act, 1961 for the AY 2022-23 to AY 2026-27. The assessee has granted provisional registration u/s 80G(5) of the Act dated 24.11.2021 form 24.11.2021 to AY 20224-25. The Ld. Counsel submits that the assessee selected wrong section code as it was due to the provision of the above clause which was not clear and even if the assessee applied under wrong section code, it is a curable defect so the order passed by the Ld. CIT(E ) is erroneous and liable to be set aside. 5. The Ld. D.R supports the impugned order. 6. Upon hearing the submission of the counsel of the respective parties. The following facts have been emerged: i) The assessee is a social organization registered under Registrar under Societies Act, 1860. ii) the assessee granted provisional registration u/s 80G(5)(iv) of the first proviso vide Registration NO. AACAP 1739 JF20216 dated 24.11.2021 from 24.11.2021 to AY 2024-25. The assessee applied for registration under section 80G(5)(ii) of the first proviso to Act in form 10AB within the extended time. 7. The Ld. CIT(E ) has rejected the application of the assessee only on this ground that the assessee had selected wrong section code while applying for form 10AB. It admits of no doubt that it is a technical mistake. The assessee has cited a decision passed 3 I.T.A. No. 75/Kol/2025 Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan in ITA NO. 1553/Del/2024 dated 05.06.2024 in the case of Raj Krishan Jain Charitable Trust in which the Tribunal has held thus: “The appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of sub-clause (iii) of clause (ac) of Sub-section (1) of Section 12A of the Act. Hence the appeal is allowed and set aside the order of Ld. CIT(E ) dated 15.03.2024 and remand the matter back to the file of Ld. CIT(E ) for fresh adjudication by considering the amended application of the appellant under Section 12A(1)(ac)(iii) of the Act or he can call for amended application from the appellant.” 8. It is further pertinent to mention here that the assessee has applied afresh under clause 80G(v)(iii) in form 10AB on 10.01.2025. Keeping in view, the above facts and considering the order of ITAT the case is again restored to the file of Ld. CIT(E) for considering this case of the assessee. The Ld. CIT(E) shall pass a afresh order in granting registration of the assessee after curing the defects as per law. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 16th April, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 16th April, 2025 SM, Sr. PS 4 I.T.A. No. 75/Kol/2025 Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan Copy of the order forwarded to: 1. Appellant- Purbottar Pradeshiya Marwari Sanmelan, Brindavan Market, S. J. Road, Athgoan, Assam-781001 2. Respondent – CIT(E ), Kolkata 3. Ld. PCIT- , Kolkata 4. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "