RAJASTHAN MEDICARE RELIEF SOCIETY SUPERSPECIALITY HOSPITAL JAIPUR,JAIPUR V. CIT EXEMPTION, JAIPUR

ITA 677/JPR/2024

AI Insights

The case involves the Rajasthan Medicare Society Superspeciality Hospital, which applied for registration under section 12 AB of the Income Tax Act, 1961, but was initially rejected by the CIT(E) due to the lack of provisional registration under the required sub-clause. The appellant argued that an inadvertent error in the online application form led to the wrong provision being cited. The tribunal found merit in the appellant's argument and remanded the case back to the CIT(E) for a fresh decision, allowing the rectification of the cited provision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35111 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-11-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 11-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12

Judgement Text

"araeax ardteta srftrpe or, VaGY =UTIUTS, TAG IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”8” Bench, JAIPUR a aft uUdls DAA TIME, CRT WaT wa sl RT GAR, Ha H GA BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM aaey adver G. /ITA No. 677/JPR/2024 Relief | “74 | CIT, Exemption, Jaipur. Rajasthan Medicare Society Superspeciality Hospital, | VS. Jaipur, Vivekanand Marg, in front of SMS Hospital, Ronk Road, Jaipur Jaipur 302004 Rajasthan, India zanirera a. /aftengene a. / PAN No.: AAAGR2459D arfreneft / Appellant yeaeit / Respondent faettRay al six B/Assessee by : Sh. Vedant Agarwal, Advocate. Ward Hl sie W/Revenue by: Ms. Alka Gautam, CIT, DR. Waals HY AR /Date of Hearing : 18/11/2024 SCG BH TR / Date of Pronouncement: /#/11/2024 ORDER ole Le Appellant herein, claiming itself to be a Trust, applied to Commissioner ad of Income Tax (Exemption) Jaipur, on 30.9.2023 for registration under section 12 AB of the Income Tax Act, 1961. re Said application has been rejected, and that is how, the applicant is before this Appellate Tribunal. Learned CIT(E) has rejected the application on the ground that the applicant did not obtain provisional registration as required under secxtion 12A(1)(ac)(vi) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Arguments heard. File perused. Discussion Indisputably, one of the essential requirement to seek registration under section 12 AB of the Act is that the trust or institution must have already got itself provisionally registered under section 12AB. However, in case of a Charitable trust or institution seeking registration for the first time under the new regime i.e. as per provisions of section 12AB, registration under sub-clause (vi) of clause (ac) of sub-section (1) of section 12 A of the Act is mandatorily required. Learned CIT(E) rejected application under section 12 AB of the Act filed by the applicant as same was not maintainable for want of provisional registration under sub-clause (vi) of clause (ac) of sub-section (1) of section 12 A of the Act. Learned counsel for the appellant has already presented a Paper Book on 3.7.2024 and drawn our attention ie hee 1 thereof i.e. copy of . ay online application submitted by the trust in Form No.10A, under sub- clause (i) of clause (ac) of sub-section (1) of section 12 A of the Act, to submit that while submitting application seeking provisional registration, an error crept in column No.2 which pertains to Section Code under which the application under section 10A was furnished online. He explains that the applicant was actually to seek registration under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A, but, due to an inadvertant mistake on the part of the applicant, wrong provision of law got fed to the relevant column pertaining to the section Code. He has urged that in the given situation, when the above mentioned application in Form No.10AC, depicting wrong provision of law, stands already allowed on 25.9.2023, the application seeking registration under section 12 AB be remanded to Learned CIT(E) for decision afresh. Learned DR has no objection to the remand of the matter to CIT(E) for disposal of the application under section 12 AB afresh, in accordance with — Page 5 of the Paper Book reveals that vide order dated 25.9.2023, application of a registration, submitted in Form No.10AC, already stands alee As per column 6 of said order, that application was submitted under sub-clause (i) of clause (ac) of sub-section (1) of section 12A. That application was furnished online on 18.9.2023. After that, on 30.9.2023, the applicant furnished application under sub- clause(iii)of clause (ac) of sub-section (1) of section 12 A. Column 7 of said application pertains to registration of the applicant under any other provision of Income-tax Act. Against this column, word “NO” was typed. Meaning thereby, even though the applicant had already applied on 18.9.2023 for registration clause (i) of clause (ac) of sub-section (1) of section 12A, it claimed to have not filed any such application. It appears to be an inadvertant mistake on the part of the applicant. However, 10. 11. dé: even learned CIT(E) could consult the previous record available on the portal of the department depicting registration of the applicant under sub-clause (i) of clause (ac) of sub-section (1) of section 12A. In such a situation, Learned CIT(E) could even seek explanation from the applicant about the previous application, if any under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A, but, no such query appears to have been raised by his office from the applicant. From the two notices issued by the office of CIT(E) to the applicant, copies submitted before us today on behalf of the appellant, it appears that therein no such query was raised by the office of CIT(E). We are informed that the applicant learnt about abovesaid error only on receipt of the impugned order, and as such, no step could be taken by the applicant for rectifigfation of said error as regards the relevant provision under which provisional registration was actually to be sought. In the given situation, in the interest of justice, we deem it a fit case to remand the matter to the files of Learned CIT(E) for decision of application under section 12 AB afresh, in accordance with law, after providing reasonable opportunity to the applicant of being heard. As regards the previous registration allowed under sub-clause (i) of clause (ac) of sub-section (1) of section 12A vide order dated 25.9.2023, Learned CIT(E) to permit the applicant to take steps for rectification of the error as regards the relevant provision of the Act un: er which the previous application was actually sought to be filed i.e. seeking provisional registration under sub-clause (vi) of clause (ac) of stib-section (1) of section 12A. In this regard, on behalf of the appellont, §'| steps shall is. 14. 15. have to be taken as per directions issued by Learned CIT(E) from time to time. ee Result As a result, the appeal is disposed of for statistical purposes, and while setting aside the impugned order, matter is remanded to the files of Learned CIT(E) for decision of application under section 12 AB afresh, in accordance with law, after providing reasonable opportunity to the applicant of being heard. As regards the previously granted provisional registration already allowed under sub-clause (i) of clause (ac) of sub-section (1) of section 12A vide order dated 25.9.2023, Learned CIT(E) to permit the applicant to take steps for rectification of the error as regards the relevant provision of the Act under which the previous application was actually sought/ or required to be filed i.e. seeking provision} reepetcaitin under sub-clause (vi) of clause (ac) of sub-section (1) of section 12A. The appellant shall ensure all steps to be taken as per directions issued by Learned CIT(E) from time to time, without fail. Applicant-appellant to appear before Learned CIT(E). File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on /8/11/2024. —- Se — — Sd- adieface waar ) RHA) (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) creat Waea / Accountant Member safe wee / Judicial Member ways / Jaipur festa / Dated:-/ 8/11/2024 seer ot ufefesrrrt/ Copy of the order forwarded to: The Appellant. yeuelt / The Respondent. sTaeragat/ The CIT, Jaipur. fornia waft, srepraicta aftrex, wagx/DR, ITAT, Jaipur msHga/ Guard File ITA No. 677/JPR/2024) aTeryaR/ By order, ae Ph were Gite / Asstt. Registrar "