2024 (6) TMI 1128 - AT - Income Tax

Rejection of the application filed in Form No.10A u/s.12A(1)(ac)(ii) - application should have been filed under a different section of the Act - CIT(Exemption) rejected the assessee s application treating it as infructuous and non-maintainable by stating the reason that the assessee ought to have applied u/s.12A(1)(ac)(iii) of the Act instead of 12A(1)(ac)(ii) - HELD THAT -After hearing both the sides and going through the facts it is noted that the assessee has simpliciter made a technical mistake in applying u/s.12A(1)(ac)(ii) instead of 12A(1)(ac)(iii) of the Act. It was informed to the Bench by the ld.counsel for the assessee that even now the assessee has filed fresh Form No.10AB seeking registration u/s.12A(1)(ac)(iii) of the Act which can also be considered. In our view the same purpose will be served by adjudicating the same application. Hence we set aside the order of CIT(Exemption) and remand the matter back to his file for fresh adjudication either considering the subsequent application of assessee u/s.12A(1)(ac)(iii) of the Act or he can call a fresh application from the assessee. In term of the above matter restored back to the file of the CIT(Exemption). Appeal filed by the assessee is allowed for statistical purposes.

Summary

Issues:
1. Delay in filing the appeal.
2. Rejection of the application filed in Form No.10A u/s.12A(1)(ac)(ii) of the Act.

Issue 1: Delay in filing the appeal
The appeal filed by the assessee was delayed by 135 days, which was beyond the prescribed time limit. The assessee submitted an affidavit along with a condonation petition explaining that the delay was caused due to a technical error in the initial application process. The assessee sought professional advice, which led to the filing of a new application and an appeal before the Tribunal. The Tribunal, considering the reason provided as reasonable, condoned the delay and admitted the appeal.

Issue 2: Rejection of the application filed in Form No.10A u/s.12A(1)(ac)(ii) of the Act
The assessee, a charitable trust, applied for registration in Form No.10A u/s.12A(1)(ac)(ii) of the Act, which was rejected by the CIT(Exemption) as infructuous and non-maintainable. The rejection was based on a technical ground, stating that the application should have been filed under a different section of the Act. The CIT(Exemption) observed that the application was erroneously filed, considering the trust's provisional registration status. The Tribunal noted that the error was technical in nature and directed the matter to be remanded back to the CIT(Exemption) for fresh adjudication, allowing the consideration of a subsequent application filed by the assessee under the correct section of the Act.

In conclusion, the Tribunal allowed the appeal filed by the assessee for statistical purposes, setting aside the initial order of rejection and remanding the matter back to the CIT(Exemption) for reconsideration based on the correct application filed by the assessee.