Public Charitable Trust's Appeal Allowed for Rectification of Registration Certificate Error under Section 11

The Tribunal allowed the appeal of the Public Charitable Trust, finding the rectification of the initial mistake regarding the 12AA Registration Certificate Number led to the exemption under Section 11 of the Act being granted. The appeal was deemed infructuous due to the rectification order, resulting in the modification of the CIT(A)'s decision and dismissal of the appeal.

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Issues:
1. Validity of adjustment made under Section 143(1) of the Income Tax Act by CPC.
2. Consideration of Registration Certificate under Section 12AA and deletion of disallowance made under Section 11 of the Act.
3. Deletion of entire disallowance and acceptance of returned income.

Issue 1: Validity of adjustment under Section 143(1) by CPC
The appellant, a Public Charitable Trust, filed an appeal against the order of the CIT(A) dated 16.07.2021. The CPC disallowed the claim for exemption under Section 11 of the Act and determined the total income of the assessee. The appeal challenged the adjustment made under Section 143(1) of the Act by CPC, contending it was invalid. The CIT(A) dismissed the appeal, upholding the CPC's decision due to the absence of the 12AA registration number in the return of income.

Issue 2: Consideration of Registration Certificate under Section 12AA
The appellant argued that the CPC rectified the order and allowed the claim under Section 11 of the Act, resulting in a nil income and a refund. The CIT(A) upheld the CPC's decision, emphasizing the absence of the 12AA registration number in the return of income. The Tribunal noted a bonafide mistake by the appellant in not providing the registration number initially. The rectification application filed by the appellant was allowed by the CPC, leading to the exemption under Section 11 being granted. The Tribunal found that the appeal had become infructuous as the relief claimed by the appellant was already allowed through the rectification order, modifying the CIT(A)'s decision and allowing the appeal.

Issue 3: Deletion of entire disallowance and acceptance of returned income
The Tribunal acknowledged the mistake made by the appellant in not including the 12AA Registration Certificate Number initially. The rectification application rectified this error, allowing the exemption under Section 11 of the Act. As the relief claimed by the appellant was already granted through the rectification order, the Tribunal found the appeal to be infructuous. Consequently, the Tribunal allowed the appeal, modifying the CIT(A)'s decision and dismissing the appeal as infructuous instead of deciding it on merit.

In conclusion, the Tribunal allowed the appeal of the assessee, emphasizing the rectification of the initial mistake regarding the 12AA Registration Certificate Number, which led to the exemption under Section 11 of the Act being granted. The appeal was found to be infructuous due to the rectification order, resulting in the modification of the CIT(A)'s decision.

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