SREE VASAVI JYOTH MANEPALLI NARAYANA MURTHY MEMORIEL VRUDHA JANASRAM,TANUKU V. THE INCOME TAX OFFICER, EXEMPTION WARD, RAJAHMUNDRY

ITA 516/VIZ/2026

AI Insights

The case involves SREE VASAVI JYOTH MANEPALLI NARAYANA MURTHY MEMORIEL VRUDHA JANASRAM, a trust, appealing against the decision of the Commissioner of Income Tax (Exemptions), which rejected their application for registration under Section 12AB of the Income Tax Act, 1961. The rejection was based on the trust's failure to provide a registration certificate evidencing registration under Section 12A/12AA prior to 01.04.2021. The Tribunal found that the Commissioner did not verify the validity of the registration number provided by the trust and thus set aside the Commissioner's decision, restoring the matter for further consideration.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 895183 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-09-2026
• Assessment Year: misc
• Appeal Filed On: 29-04-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard
• Section: 12A

Judgement Text

"आयकर अपीलीय अधिकरण, विशाखापत्तनम पीठ, विशाखापत्तनम INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM BENCH: DIVN श्री मंजूनाथ जी, माननीय लेखा सदस्य एिं श्री रिीश सूद, माननीय न्याययक सदस्य SHRI G. MANJUNATHA, HON’BLE ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER ITA 516/VIZ/2026 (निर्धारण वर्ा/Assessment Year: Not Applicable) SREE VASAVI JYOTH MANEPALLI NARAYANA MURTHY MEMORIEL VRUDHA JANASRAM 1, DLK ROAD, IRAGAVARAM COLONY, TANUKU-534211, ANDHRA PRADESH Vs. THE INCOME TAX OFFICER, EXEMPTION WARD, INCOME TAX OFFICE, AAYAKAR BHAVAN, KAMBALA CHERUVU, VEERABHADRA PURAM RAJAHMUNDRY-533105, ANDHRA PRADESH अपीलार्थी Appellant प्रत्यर्थी Respondent Permanent Account Number of Assessee: AAETS2695B अपीलार्थी द्वारा/Appellant represented by: Adv GVN Hari (HYBRID) प्रत्यर्थी द्वारा/Respondent represented by: Sri Nilanjan Dey, CIT(DR) सुनवाई की तारीख / Date of conclusion of hearing: 03-Sep-2026 घोषणा की तारीख / Date of pronouncement: 16-09-2026 Printed from counselvise.com 2 ITA No.516/Viz/2026 आदेश / ORDER PER MANJUNATHA G., A.M : This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Exemptions) [“Ld. CIT(E)”], Hyderabad dated 17.02.2026, rejecting the application filed by the assessee in Form No. 10AB seeking registration under Section 12AB of the Income Tax Act, 1961 [in short “the Act”]. 2. The brief facts of the case are that, the assessee Trust has filed an e-application in Form No.10AB seeking registration u/s 12AB of the Income-tax Act, 1961. The Ld. CIT(E) issued notices to the assessee in respect of proceedings u/s 12A(1)(ac)(ii) to produce the registration certificate granted prior to 01.04.2021 / order in Form No.10AD, along with other relevant information for verification. In response to the same, the assessee submitted information. The A.O./CPC had issued the regular registration in Form No.10AC as per the provisions of Section 12A(1)(ac)(i). 3. The Ld. CIT(E), however, observed that only those assessees who were already registered u/s 12A/12AA prior to 01.04.2021 were eligible for extension of registration for the period from A.Y. 2022-23 to A.Y. 2026-27. Since the assessee failed to furnish the Printed from counselvise.com 3 ITA No.516/Viz/2026 registration copy evidencing registration prior to 01.04.2021, despite opportunity being provided, the Ld. CIT(E) rejected the application filed by the assessee in Form No.10AB seeking renewal of registration u/s 12AB, treating the same as infructuous. 4. Aggrieved by the order of the Ld. CIT(E), the assessee is now in appeal before the Tribunal. 5. The learned counsel for the assessee, Shri GVN Hari, Advocate, submitted that, the assessee Trust was registered u/s 12A of the Act prior to 01.04.2021 and, therefore, the assessee is eligible for registration under the provisions of Section 12AB of the Act. He further submitted that, the assessee could not furnish the relevant registration details before the Ld. CIT(E) and, on that ground, the application filed by the assessee was rejected. He submitted that the assessee is in a position to establish the fact of registration u/s 12A of the Act prior to 01.04.2021 by filing the relevant registration certificate and other supporting details. Therefore, he submitted that one more opportunity may be given to the assessee to establish the fact of registration before the Ld. CIT(E) and the matter may be restored to the file of the Ld. CIT(E) for considering the application in accordance with law. Printed from counselvise.com 4 ITA No.516/Viz/2026 6. The Ld. CIT-DR, Shri Nilanjan Dey, on the other hand, relied on the order of the Ld. CIT(E). However, he fairly agreed that the matter may be restored to the file of the Ld. CIT(E) for providing one more opportunity to the assessee. 7. We have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The issue before us is with regard to the rejection of the application filed by the assessee in Form No.10AB seeking registration u/s 12AB of the Act. We find that, the Ld. CIT(E) has rejected the application on the ground that the assessee failed to furnish the registration copy evidencing registration u/s 12A/12AA prior to 01.04.2021, despite opportunity being provided. It was the argument of the learned counsel for the assessee that the trust had a valid registration before 01.04.2021 and the registration number is provided to the Ld. CIT(E) by furnishing income tax returns filed for the assessment years as a proof, however, the Ld. CIT(E) has rejected the application only on the ground of not furnishing the copy of registration certificate. But fact remains that once the valid registration number is provided, Ld. CIT(E) ought to have verified the records and Printed from counselvise.com 5 ITA No.516/Viz/2026 ascertain whether the claim of the assessee is correct or not before rejecting the application filed by the assessee. We find that, once the assessee claims that, there is a valid registration and filed relevant registration number, it is the obligation of the Ld. CIT(E) to verify the claim of the assessee with records available with the department to ascertain whether the registration number furnished by the assessee is valid or not before rejecting the application. Since the Ld. CIT(E) rejected the application without considering the claim of the assessee, in our considered view, the order passed by the Ld. CIT(E) cannot be upheld. Therefore, considering the facts and circumstances of the case, in our considered view, one more opportunity should be given to the assessee to establish the fact of registration u/s 12A of the Act prior to 01.04.2021 by filing the relevant details before the Ld. CIT(E). 8. In view of the above, we set aside the order passed by the Ld. CIT(E) and restore the matter to the file of the Ld. CIT(E) to give one more opportunity to the assessee Trust to establish the fact of registration u/s 12A of the Act prior to 01.04.2021 by filing relevant details and thereafter consider the application filed by the Printed from counselvise.com 6 ITA No.516/Viz/2026 assessee in Form No.10AB in accordance with law. Needless to say, the assessee shall be provided reasonable opportunity of being heard. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 16th September, 2026. Sd/- (श्री रिीश सूद) (RAVISH SOOD) न्याययक सदस्य/JUDICIAL MEMBER Sd/- (मंजूनाथ जी) (MANJUNATHA G.) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- Hyderabad, dated 16.09.2026. TYNM/sps Printed from counselvise.com 7 ITA No.516/Viz/2026 आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तनर्ााररती/The Assessee : SREE VASAVI JYOTH MANEPALLI NARAYANA MURTHY MEMORIEL VRUDHA JANASRAM 1, DLK ROAD, IRAGAVARAM COLONY, TANUKU-534211, ANDHRA PRADESH 2. राजस्व/ The Revenue : THE INCOME TAX OFFICER, EXEMPTION WARD, INCOME TAX OFFICE, AAYAKAR BHAVAN, KAMBALA CHERUVU, VEERABHADRA PURAM RAJAHMUNDRY-533105, ANDHRA PRADESH 3. The Principal Commissioner of Income Tax (Exemptions), Visakhapatnam 4. तवभागीयप्रतततनतर्, आयकर अिीिीय अतर्करण, तवशाखाित्तनम / DR, ITAT, Visakhapatnam 5. गार्ाफ़ाईि / Guard file आदेशानुसार / BY ORDER Senior Private Secretary, ITAT, Hyderabad. Printed from counselvise.com TIRUPATI YAMINI NAGA MALLESWARI Digitally signed by TIRUPATI YAMINI NAGA MALLESWARI Date: 2026.09.23 10:05:42 +05'30' "