SHOOTING STARS FOUNDATION,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 1440/CHNY/2025

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The case involves Shooting Stars Foundation, a charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chennai, rejecting their application for renewal of registration under section 12A of the Income Tax Act, 1961. The CIT(E) had erroneously considered the trust as holding only a provisional registration, whereas it actually held a permanent registration. The tribunal found that the CIT(E)'s decision was based on a misunderstanding of the trust's registration status and directed a reevaluation of the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711866 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI
• Assessee Lawyers: BABU PERAM
• Keywords: Opportunity of being heard; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT & MS PADMAVATHY S, AM I.T.A. No. 1440/Chny/2025 (Assessment Year:) Shooting Stars Foundation No. 2, 4th Street, Sterling Road, Nungambakkam, Chennai-600 034 PAN: ABATS9245E Vs. Commissioner of Income Tax (Exemption), Income Tax Department, Block-121, Nungambakkam High Road, Chennai-600034. Appellant) : Respondent) Appellant /Assessee by : Mr. Babu Peram, CA Revenue / Respondent by : Ms. E. Pavuna Sundari, Sr. DR Date of Hearing : 23.07.2025 Date of Pronouncement : 25.07.2025 O R D E R Per Padmavathy S, AM: This appeal by the assessee is against the order of the Commissioner of Income Tax (Exemptions), Chennai [in short 'CIT(E)'] dated 26.03.2025 in Form No. 10AD rejecting the registration under section 12A of the Income Tax Act, 1961 (the Act). The assessee raised the following grounds of appeal: “The appellant was granted permanent registration u/s 12A exemption upto AY 2025-26 and applied for renewal of the said exemption certificate u/s 12A vide Application Number 512593620270924 dated 27/09/2024 u/s 12(1)(ac) (ii) before the expiry of 6 months from the end of the certificate validity. Whereas the CIT(EXEMPTIONS) without considering the permanent approval of 12A, Printed from counselvise.com 2 ITA No. 1440/Chny/2025 Shooting Stars Foundation relied upon provisional registration issued vide ABATS9245EE20206 valid from AY 2021-22 to 2023-24 and erroneously passed the order. Also, the appellant has applied for renewal on 27/09/2024 which is within the said time period of 6 months before the expiry of permanent approval of 12A registration. Hence there is no delay in filing of the application as mentioned in the rejection order. The Appellant craves leave to file additional grounds/arguments at the time of hearing.” 2. The assessee is a charitable trust which was created on 28.12.2020. The assessee received the provisional registration in Form 10AC on 27.05.2021. The assessee applied for permanent registration under section 12A and got the approval for permanent registration vide order dated 23.01.2024 for the period AY 2021-22 to AY 2025-26. Subsequently, the assessee applied for renewal of registration under section 12A on 27.09.2024 which is within six months from the end of the corresponding AY 2025-26. Since the assessee is an existing Trust in the application for renewal in Form 10AB the assessee has stated the section under which registration is sought as section 12A(1)(ac)(ii). The CIT(E) rejected the application for renewal stating that the assessee is holding only provisional registration and therefore, should have applied for permanent registration under section 12A(1)(ac)(iii) of the Act. The assessee is in appeal against the order of the CIT(E). 3. We heard the parties and perused the material on record. The ld. AR brought to our attention that the assessee trust is already having a permanent registration under section 12A (page 5 to 9 of PB) and that the CIT(E) has incorrectly considered only the provisional registration. From the perusal of the provisions of section 12A(1)(ac)(ii) we notice that the Trust or Institution which is registered under section 12AB and the period of said registration is due to expire is required to apply for renewal at least six months prior to the expiry period. We further notice Printed from counselvise.com 3 ITA No. 1440/Chny/2025 Shooting Stars Foundation that the as per provisions of section 12A(1)(ac)(iii), we notice that it is applicable to Trust or Institutions which are provisionally registered under section 12AB wherein the application for permanent registration is required to be made within six months from the commencements of activities or at least six months prior to the expiry of period of provisional registration whichever is earlier. From the perusal of records, we noticed that the assessee vide order dated 23.01.2024 in Form 10AB received the final registration under section 12AB for the period AY 2021-22 to 2025-26. Therefore, we see merit in the submissions that the application for renewal in assessee's case is required to be made under section 12A(1)(ac)(ii) and not under section 12A(1)(ac)(iii) as held by the CIT(E). Since the CIT(E) has rejected the application for renewal of registration based on the misunderstood fact that the assessee is having only provisional certificate and not considered the final registration we are remitting the appeal back to the CIT(E) with a direction to consider the application made for renewal of registration taking into account the fact that the assessee is already having the final registration under section 12A of the Act. The CIT(E) is further directed to examine the application on merits and grant the registration in accordance with law. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly. 4. In result, appeal of the assessee is allowed. Order pronounced in the open court on 25-07-2025. Sd/- Sd/- (GEORGE GEORGE K) (PADMAVATHY S) Vice President Accountant Member *SK, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Chennai Printed from counselvise.com 4 ITA No. 1440/Chny/2025 Shooting Stars Foundation 4. CIT, Chennai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "