2024 (1) TMI 1437 - AT - Income Tax

Denial of grant registration u/s 12AB(1) - assessee has already been granted registration which is valid till 2026-27 - HELD THAT -Clause (c) of Section 12AB(1) provides for grant of provisional registration for a period of three years from the assessment year from which the registration is sought which the assessee has been granted. Now the assessee has applied for permanent registration u/s 12AB(1) Clause (b) of the Act and CIT (Exemption) is required to call for the documents and information and after recording his satisfaction grant registration for a period of five years. Thus the assessee has filed the application for grant of registration for a period of five years and nothing else. Therefore we find that ld. CIT (Exemption) has not properly appreciated the facts of the case and has wrongly dismissed the application of the assessee for permanent registration as premature in nature. The case of the assessee finds support from the decision of Fatika Nazrul Sukanta Educational Training Center 2023 (11) TMI 1271 - ITAT KOLKATA wherein a similar issue has been decided in favour of the assessee. Set aside the orders of ld. CIT (Exemption) in all the above four appeals and restore the issue back to the file of ld. CIT (Exemption) for afresh adjudication. Appeals filed by the assessee are allowed for statistical purposes.

Summary

The Appellate Tribunal, ITAT Kolkata, considered four appeals by the assessee against orders by the Commissioner of Income-tax (Exemption). The main issue was the denial of registration under section 12AB(1) of the Income Tax Act, 1961. The Tribunal found that the Commissioner had dismissed the application as premature without considering the merits. The Tribunal noted that provisional registration had been granted, and the assessee applied for permanent registration, which the Commissioner should have assessed. Citing a similar case, the Tribunal set aside the Commissioner's orders and remanded the issue for fresh adjudication. Consequently, all appeals by the assessee were allowed for statistical purposes. (Judgment dated 9th January, 2024, Kolkata)