SCIENCE FOR SOCIETY BIHAR,PATNA V. CIT(EXEMPTION), PATNA

ITA 592/PAT/2024

AI Insights

The case involves Science for Society Bihar, an educational institution, which appealed against the decision of the CIT(Exemption), Patna, rejecting their application for registration under Section 12A of the Income Tax Act. The rejection was based on the selection of an incorrect section code in form 10AB during the application process. The tribunal found that this was a technical mistake and referenced a similar case to restore the matter to the CIT(E) for reconsideration under the correct provisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396588 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Other Referred Cases: ITA No75/2025, ITA NO. 1553/Del/2024
• Laws Referred To: Section 12A, Section 12AB(1)(b)
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: PASSING FOLLOWING
• Keywords: Set aside; Charitable institution
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH: PATNA VIRTUAL HEARING AT KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member&Shri Sanjay Awasthi, Accountant Member] I.T.A. No. 592/Pat/2024 Assessment Year: 2025-26 Science for Society Bihar (PAN: AABAS 9563 Q) Vs. CIT(Exemption), Patna Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 14.05.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 26.05.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Sh. Aman Raja, A.R For the revenue / राजèव कȧ ओर से Rinku Singh, CITDR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 24.10.2024 for AY 2018-19. 2 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar 2. It appears from the report of the registry that the appeal has been filed after a delay of 2 days for this the assessee has filed condonation petition., which are as follows- 3 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar 4 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar On perusal of the condonation petition, the reason for delay in filing the appeal seems to be genuine and bonafide. The Ld. D.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement that the case should be decided on merit not on technical issue, the delay is hereby condoned. 3. Brief facts of the case of the assessee is that the assessee filed an application in form 10AB for grant of registration under sub-clause (vi)(b) of Clause (ac) of Section 12A read with Section 12AB(1)(b) of the Act. Application of the assessee has been rejected by the Ld. CIT(E ) by observing that the assessee has selected the wrong section code while applying form 10AB. 4. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 5. The Ld. Counsel for the assessee challenges the very impugned order thereby submitting that the Ld. CIT(E ) has erred in rejecting the application on the ground of wrong section code ignoring the facts that the assessee has fulfilled all the condition provided u/s 12A for becoming eligible to obtain registration. The Ld. Counsel for the 5 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar assessee submits that the Ld. CIT(E ) failed to appreciate the clerical error committed in selecting appropriate head in drop drawn list provided in e-filing portal while furnishing form 10AB. Moreover, the said mistake is curable in nature. 6. Contrary to that the Ld. D.R supports the impugned order. 7. Upon hearing the submission of the counsel of the respective parties. The following facts have been emerged: i) assessee is an educational institutional. ii) the assessee granted provisional approval with unique registration no. AABAS 9563 QE 20221 for AY 2023-24 to 2025-26. 8. The Ld. CIT(E ) has rejected the application of the assessee by passing following orders: “3. It may be seen that the clause (vi)(B) is applicable in respect of other cases not covered by sub-clauses (i) to (v) of clause (ac) of sub-section (1) of section 12A. For grant of regular registration for five years, there is a specific provision laid down under sub-clause (iii) of section 12A(1)(ac) for filing of application by those cases which have been provisionally approved. In case of the applicant, provision approval has already been granted on 09.03.2023 with unique registration number AABAS9563QE20221 for AY 2023-24 to 2025 – 26 therefore, it falls under sub-clause (iii) of Section 12A(1)(ac) for making application for grant of registration for five years under Section 12AB(1)(B) and it is not eligible to file application under sub-clause (vi)(B) of Section 12A(1)(ac) as the sub-clause (vi)(B) is meant for only the cases other than those ones which are registered or provisionally registered.” 9. We have gone through a decision passed in ITA No75/2025 dated 16.04.2025 by the Kolkata bench and the relevant portion of the order is as thus- “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 6 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar doubt that it is a technical mistake. The assessee has cited a decision passed 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. 10. The present case is similar to the above cited decision, accordingly the appeal of the assessee is restored to the file of Ld. CIT(E ) for fresh adjudication by considering the application of the assessee filed under right section or if the Ld. CIT(A) feels it necessary can call for amended application from the assessee. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 26th May, 2025 Sd/- Sd/- (Sanjay Awasthi /संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 26th May, 2025 SM, Sr. PS 7 I.T.A. No. 592/Pat/2024 Assessment Years: 2025-26 Science for Society Bihar Copy of the order forwarded to: 1. Appellant- Science for Society Bihar, Science College,Patna University, Patna- 800005 (Bihar) 2. Respondent – CIT(Exemption), Patna 3. Ld. Pr. CIT- , Patna 4. DR, Patna Bench, Patna True Copy By Order Assistant Registrar /Sr. Private Secretary ITAT, Patna Bench, Patna "