SRI NATARAJA TRUST,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 2540/CHNY/2024

AI Insights

The case involves Sri Nataraja Trust, an old Trust established in 2003, which initially enjoyed registration under Section 12AA of the Income Tax Act, 1961. Following the enactment of TOLA 2020, the Trust applied for re-registration under Section 12AB and was granted provisional registration. However, due to an inadvertent error, the Trust applied under the wrong sub-clause, leading to the rejection of their application by the CIT (Exemptions). The Trust appealed this decision, arguing that the mistake should not result in the loss of their registration rights. The Tribunal agreed with the Trust's position, setting aside the CIT's order and directing the proper processing of the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107135 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM
• Assessee Lawyers: SURAJ NAHAR
• Keywords: Competent authority
• Section: 12A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद\t क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2540/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: - Sri Nataraja Trust, 08, Royal Enclave, Besant Avenue, Chennai-600 020. v. The CIT (Exemptions), Chennai. [PAN: AAHTS 6689 J] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr. Suraj Nahar, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. Nilay Baran Som, CIT सुनवाईक\u001aतारीख/Date of Hearing : 24.12.2024 घोषणाक\u001aतारीख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter in short ‘the Ld.CIT(E)’), Chennai, dated 27.07.2024. 2. At the outset, the Ld. Counsel for the assessee submitted that there is a delay of ‘5’ days in filing of this appeal and explained the cause for :: 2 :: delay which we note are sufficient cause, which prevented the assessee from filing of appeal within the time prescribed, therefore, we condone the delay of ‘5’ days and proceed to adjudicate the appeal on merits. 3. Brief facts are that the assessee is an old Trust formed on 02.06.2003 which enjoyed registration u/s.12AA of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘), from the year 2007 onwards; and after the Parliament passed TOLA 2020 w.e.f.01.04.2021, the assessee had to apply for re-registration under sub-clause (i) of Clause (1) of Sec.12A of the Act, which assessee did and was granted provisional registration on 27.05.2021 for five years. Thereafter, as per the Scheme of the new regime, the assessee had to file for renewal under sub-clause (iii) of clause (1) of Section 12A of the Act, whereas, it inadvertently applied under sub-clause (vi) of this provision and because of which, it was inter-alia rejected by the Ld.CIT(E). Aggrieved, the assessee is in appeal before us. 4. Having heard both parties, we find that assessee Trust is an old Trust which enjoyed registration u/s.12A of the Act from the year 2007 onwards; and after TOLA 2020, the assessee was granted provisional registration u/s.12AB of the Act for five years by order dated 27.05.2021. Thereafter, the assessee inadvertently filed application under sub-clause (vi) of clause (1) of section 12A of the Act, whereas assessee had to file :: 3 :: application under sub-clause (iii) of clause (1) of section 12A of the Act. The Ld.CIT(E) inter-alia, taking note of the wrong provision under which assessee filed for registration u/s.12AB of the Act, was pleased to reject the same, which we do not approve; and is of the view that merely because of inadvertent mistake in filling up sub-clause (vi) instead of sub clause (iii), the assessee’s right for renewing the registration u/s.12AB of the Act can’t be denied. Therefore, we are of the considered opinion that the inadvertent mistake of the assessee clicking online for renew its registration under clause (vi) of sec.12(1)(ac) needs to be intervened and rectified; therefore, the assessee’s application for registration under sub- clause (vi) needs to be treated as if assessee has applied under clause (iii) of sec.12A(1)(ac) of the Act. In the light of the discussion, we set aside the impugned order of the Ld.CIT(E) dated 27.07.2024 and restore the assessee’s application for renewing the registration back to the file of the Ld.CIT(E) and direct him to process the application filed by assessee on 01.01.2024 in Form 10 as if filed u/s.12A(1)(ac)(iii); and the competent authority is at liberty to call for any documents including asking assessee to file hard copy of Form 10 u/s.12A(1)(ac)(iii); and thereafter, decide to grant renewal of the registration u/s.12AB(1)(b) of the Act for five (5) years as contemplated under sub-clause (ii)(A) of section 12AB(1)(b) of the Act. Needless to say, assessee be given opportunity of hearing and assessee to file relevant documents and :: 4 :: written submissions as called for by the Ld.CIT(E) and pass orders after hearing the assessee in accordance to law. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 05th day of February, 2025, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 05th February, 2025. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\r/Appellant 2. \u000e\u000fथ\r/Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड\u001eफाईल/GF "