SHRI NAVSARI VISHALAD VIDHYOTEJAK FUND NAVSARI,NAVSARI V. CIT(EXEMPTION), AHMEDABAD

ITA 1272/SRT/2024

AI Insights

The case involves Shri Navsari Vishalad Vidhyotejak Fund, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Ahmedabad, regarding the rejection of their application for registration under Section 12AB of the Income Tax Act, 1961. The assessee had inadvertently selected the wrong clause during the online application process. The Tribunal found that the assessee's application should be considered under the correct clause, Section 12A(1)(ac)(iii), and directed the CIT(E) to reassess the application accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 106912 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

"आयकर अपीलीय अिधकरण, सूरत Ɋायपीठ, सूरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1272/SRT/2024 (Hybrid Hearing) Shri Navsari Vishalad Vidhyotejak Fund Navsari, Haveli Street, Navsari - 396445 PAN No. ABATS0406P Vs. The CIT (Exemptions), Ahmedabad. Appellant/ Assessee Respondent/Revenue Assessee represented by Shri Sujesh C. Suratwala, CA Department represented by Shri Ravi Kant Gupta, CIT-DR Date of Institution of Appeal 05/12/2024 Date of hearing 13/02/2025 Date of pronouncement 13/02/2025 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Exemptions), Ahmedabad [in short, the ld. CIT(E)], dated 09/11/2024. 2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the assessee filed an application for registration under Section 12AB of the Income Tax Act, 1961 (in short, the Act). However, at the time of filing online application, the consultant/C.A. selected inappropriate clause of Section 12A(1)(ac)(vi)-ITEM(B) instead of Section 12A(1)(ac)(iii) of the Act. The ld. AR of the assessee submits ITA No. 1272/Srt/2024 Shri Navsari Vishalad Vidhyotejak Fund Navsari 2 that it was an inadvertent mistake, the ld. CIT(E) ought to have considered the application of assessee under Section 12A(1)(ac)(iii) of the Act. The ld. AR of the assessee submits that the assessee has provisional registration, the assessee has applied for regular registration under Section 12A/12AB well within time prior to expiry of provisional registration. The assessee submits that good case on merit and is likely to succeed if the application of assessee is considered under Section 12A(1)(ac)(iii) of the Act. The ld. CIT(E) may be directed to treat the present application under Section 12A(1)(ac)(iii) of the Act instead of Section 12A(1)(ac)(vi)-ITEM(B). The assessee fulfilled all other remaining condition for registration under Section 12A/12AB of the Act, i.e. charitable object and genuinenity of activities. 3. On the other hand, the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue submits the assessee has applied under wrong provision and the ld. CIT(E) has rightly rejected the application of assessee. 4. We have considered the submissions of both the parties and perused the orders of the lower authorities carefully. There is no dispute that the assessee was having provisional registration under section 12A/12AB and applied for regular registration under Form 10AD. The ld. CIT(E) while considering the application of assessee held that assessee is not eligible for registration under Section 12A(1)(ac)(vi)-ITEM(B). ITA No. 1272/Srt/2024 Shri Navsari Vishalad Vidhyotejak Fund Navsari 3 Considering the fact that the application of assessee was not considered on merit for regular registration under Section 12A/12AB, therefore, we deem it appropriate to direct the ld. CIT(E) to treat the application of assessee under Section 12A(1)(ac)(iii) in place of Section 12A(1)(ac)(vi)- ITEM(B) of the Act and to consider the case on merit and pass the order in accordance with law. Needless to direct that before passing the order, the ld CIT(E) shall grant opportunity of hearing to the assessee. The assessee is also directed to furnish complete details to prove its object and activity and make all compliances as desired by the ld. CIT(E). In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes only. 5. In the result, this appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 13.02.2025. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member सूरत / Surat Dated: 13/02/2025 SAMANTA आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडŊ फाईल/ Guard File // True Copy // By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "