STELLA MARIS TRUST,ALAPPUZHA V. CIT(E), KOCHI

ITA 249/COCH/2025

AI Insights

The case involves Stella Maris Trust, a charitable trust, which appealed against the decision of the CIT(Exemption), Kochi, denying their registration under section 12A of the Income Tax Act. Initially, the trust had mistakenly applied under section 12A(1)(ac)(i) instead of the correct section 12A(1)(ac)(iv). The CIT(Exemption) rejected their application and cancelled their registration, citing the error as a reason. The Tribunal, after hearing the Departmental Representative and reviewing the records, decided to set aside the CIT(Exemption)'s order and remand the case for a fresh decision, acknowledging the technical mistake made by the trust.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633612 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURESH SIVANANDAN IRS
• Keywords: Set aside; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Sonjoy Sarma, Judicial Member ITA No.249/Coch/2025 Assessment Years: 2025-26 Stella Maris Trust 19/292 Bishops House Ambalapuza Taluk Alappuzha Bazar S.O Alappuzha West, Alappuzha Kerala-688012. PAN : ABETS6388Q. v. CIT(Exemption), Kochi (Appellant) (Respondent) Appellant by : None Respondent by : Shri Suresh Sivanandan IRS, CIT-DR Date of Hearing : 02.06.2025 Date of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 26.12.2024 of the CIT(Exemption), Kochi [hereinafter referred to as ‘CIT(E)’] denying the assessee’s registration u/s 12A of the Act. 2. Brief facts of the case are that the assessee is a charitable trust. Form no.10AC was issued on 05.07.2024 granting registration u/s 12A(1)(ac)(i) of the Act from A.Y 2022-23 to A.Y 2026-27. The assessee committed a technical mistake in making ITA No.249/Coch/2025 Stella Maris Trust 2 the application u/s 12A(1)(ac)(i) of the Act instead of u/s 12A(1)(ac)(iv) of the Act while preparing and submitting the Form 10A. 3. The CIT(E) rejected the application in Form 10AB filed for registration u/s 12A observing as under: “The applicant was requested show cause as to why its application in Form 10AB filed for registration u/s.12A should not be rejected, on or before 20/12/2024, vide order sheet noting dated 17/12/2024. In its reply, the applicant stated that they have selected section code 12A(1)(ac)(i) instead of 12A(1)(ac)(iv) due to inadvertent oversight. Thus, the applicant has not denied the fact that it has obtained regular registration in form 10AC under sub clause (i) of clause (ac) of sub-section (1) of section 12A erroneously. Since the applicant has obtained regular registration under section 12A erroneously, the same has to be cancelled as per the provisions under sub rule (6) of Income Tax Rules 17A. The various ITAT orders quoted are not applicable in the case of the applicant. Based on the above discussion, Form 10AB filed for registration u/s.12A of the Act is rejected. Further, regular registration u/s.12A obtained in Form 10AC is cancelled, being erroneous, as per provisions of Income Tax Rules 17A (6).” 4. No one has appeared on behalf of the assessee despite serving notice. We proceed to adjudicate the case after hearing the ld. DR and perusing the materials on record. 5. After hearing the ld. DR and going through the records , we find that the assessee has made a technical mistake in applying u/s 12A(1)(ac)(i) of the Act instead of u/s 12A(1)(ac)(iv) of the Act and hence, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) for fresh adjudication in accordance with law. ITA No.249/Coch/2025 Stella Maris Trust 3 6. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 10.06.2025. Sd/- (Inturi Rama Rao) Sd/- (Sonjoy Sarma) Accountant Member Judicial Member Cochin, Dated: 10.06.2025. RS Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), Concerned. 4. The CIT Concerned. 5. The DR, ITAT, Cochin. 6. Guard File. Asst. Registrar/ITAT, Cochin "