Permanent registration under section 12AB requires fresh consideration after hearing where rejection was not on merits.

An application for permanent registration under section 12AB was rejected as premature and non-maintainable because the earlier Form 10AC registration was treated as continuing up to assessment year 2026-27. The ITAT Kolkata noted the assessee's contention that the procedural requirements had been complied with and that the rejection was not a merits-based disposal. It therefore directed the competent authority to reconsider the Form 10AB application in accordance with law and after affording the assessee an opportunity of hearing.

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Issues: Whether the application for permanent registration under section 12AB was required to be reconsidered in accordance with law after affording an opportunity of hearing.

Analysis: The assessee had applied in Form 10AB seeking permanent registration, but the application was rejected as premature and non-maintainable on the premise that the earlier Form 10AC registration remained valid till assessment year 2026-27. The Tribunal noted the assessee's plea that the necessary procedural requirements had been complied with and that the rejection was not a proper disposal on merits. In these circumstances, the matter required fresh consideration by the competent authority after giving the assessee an opportunity to be heard.

Conclusion: The application was directed to be reconsidered by the CIT(E) in accordance with law after granting an opportunity of hearing to the assessee.

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