SHREE OM BABA JI EDUCATION & WELFARE TRUST,PANCHKULA V. CIT EXEMPTION CHANDIGARH, CHANDIGARH

ITA 368/CHANDI/2025

AI Insights

The case involves Shree Om Baba Ji Education and Welfare Trust, which appealed against the rejection of their application for registration under Section 12A(1)(ac)(i) by the CIT (Exemption). The trust had initially filed for provisional registration under an incorrect section and later sought to convert it into permanent registration. The CIT (Exemption) rejected the application based on a surrender application that had been accepted earlier, leading to confusion about the registration status. The Tribunal noted that the trust had already been granted permanent registration and thus found the rejection of the later application to be without merit, leading to the quashing of the CIT's order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708521 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Section 12A(1)(ac)(iii), Section 12A(1)(ac)(vi), Section 12A(1)(ac)(i), Section 80G(5)(i)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARABJEET SINGH LD
• Assessee Lawyers: S.P. GOYAL LD
• Section: 12AA

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.368 /CHANDI/2025 Shree Om Baba Ji Education and Welfare Trust # 104-A, GHS-86, Sector 20 Panchkula 134120 बनाम/ Vs. CIT (Exemption) Room No1 5th Floor CR Building, Himalaya Marg Sector 17-E, Chandigarh-160017. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AACTS-7923-G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri S.P. Goyal – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Sarabjeet Singh (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 10-07-2025 घोषणाकीतारीख /Date of Pronouncement : 15-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application filed by the assessee seeking registration u/s 12A(1)(ac)(iii) vide impugned order dated 20- 02-2023 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. The registry has noted delay of 682 days in the appeal, the condonation of which has been sought by Ld. AR which is supported by an affidavit of trustee of assessee-trust. It has been stated that delay occurred due to incorrect understanding of registration procedure under new regime. 2 2. On merits, Ld. AR filed sequence of registration applications filed by the assessee as under: - 1. 31.05.2007 Already registered U/s 12AA in old regime dated 31.05.2007 by CIT Exemption Panchkula 2. 29.12.2020 Application filed in Form 10A under section 12A(l)(ac)(vi) wrongly instead of Section 12A(l)(ac)(i) for existing registered entity 3. 27.05.2021 Provisional Registration granted in Form 10AC U/s 12A(l)(ac)(vi) for the assessment year 2021-22 to 2023-24 4. 23.07.2021 Surrender Application filed of Form 10A filed u/s 12A(l)(ac)(vi) Surrender application was accepted on 25.11.2022 5. 12.09.2022 Form 10AB filed for conversion of Provisional into permanent since, the surrender application was not accepted by department upto 12.09.2022, so filed cautiously 6. 25.11.2022 Surrender application was accepted on 25.11.2022, means filing of Form 10A & Form 10AB become infructuous & null and void and has no legal sanctity. 7. 25.11.2022 Application for Registration under Correct Section 12A(l)(ac)(i) filed 8. 02.12.2022 Application filed on 25.11.2022 was accepted by the department & issued final approval / registration on 02.12.2022 for the assessment year 2022- 23 to 2026-27 (By the same Worthy CIT Exemption). 02.12.2022 Registration U/s 80G(5)(i) dated 02.12.2022 was also issued by then Worthy CIT Exemption for the assessment year 2022-23 to 2026-27. 9. 20.02.2023 Order for rejection was passed by the same Worthy CIT Exemption rejecting the application filed in Form 10AB and earlier Form 10A. Since Form 10AB and Form 10A filed was surrendered and accepted by the 3 department on 25.11.2022. So this rejection order passed on the basis of surrendered application is void ab initio 3. Upon perusal of above tabulation, it could be seen that the assessee trust is an old trust existing prior to 01-04-2021 and it was already registered u/s 12AA in the old regime. The assessee filed application in Form No.10A u/s 12(1)(ac)(vi) wrongly instead of correct Sec.12A(1)(ac)(i) which was applicable for existing registered entity. Acting on this application, the assessee was granted provisional registration on 27-05-2021 for AYs 2021-22 to 2023-24. However, considering the mistake in the application, the assessee filed surrender application on 23-07-2021 which was accepted on 25-11-2022. In the meanwhile, the assessee preferred Form No.10AB on 12-09-2022 seeking conversion of provisional registration into permanent registration since surrender application was not accepted by the department up-to that date. On 25-11-2022, the assessee filed another fresh application seeking permanent registration under correct Section 12A(1)(ac)(i). Acting on the same, the assessee was granted final registration by Ld. CIT(E) on 02-12-2022 for AYs 2022-23 to 2026-27. The assessee also filed registration application u/s 80G(5)(i) on 02-12- 2022 which was also granted for AYs 2022-23 to 2026-27. However, vide impugned order dated 20-02-2023, the Ld. CIT(E) rejected Form No.10AB as filed by the assessee on 12-09-2022 seeking conversion of provisional registration into permanent registration for want of any effective representation from the assessee. The same is exact grievance of the assessee. 4 It could thus be seen that the appeal has reached up-to Tribunal primarily because of misunderstanding of registration procedure under new regime by the assessee. Nevertheless, the fact remains that the assessee has filed fresh application under new regime and it has already been granted permanent registration on 02-12-2022 for AYs 2022-23 to 2026-27 which is intact till date. Considering this fact, the impugned application filed by the assessee on 12-09-2022 is to be considered as infructuous since surrender application of provisional registration has already been accepted by the department on 25-11- 2022. In this factual background, we admit the present appeal of the assessee and hold that the impugned application filed by the assessee has been rendered infructuous and impugned order stand quashed. The assessee has already been granted permanent registration on 02- 12-2022 for AYs 2022-23 to 2026-27 which would remain valid / in force. We order so. 4. The appeal stands allowed. Order pronounced on 15-07-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 15-07-2025. 5 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH "