2024 (2) TMI 1574 - AT - Income Tax

Reconsideration ordered for permanent registration under section 12AB after premature rejection based on 10AC validity

ITAT directed reconsideration of the assessee's application for permanent registration under section 12AB after finding the CIT(E)'s rejection - premised ... Denial of permanent registration u/s 12A(1)(ac)(iii) - application of the assessee filed before CIT(E) was rejected by citing that the application filed by the assessee was premature and non-maintainable as earlier order has been passed in Form 10AC is still valid till 2026-2027 - HELD THAT:- As per the material available on record and we find it necessary to direct the ld. CIT(E) to reconsider the application of assessee for permanent registration filed u/s 12AB of the Act in accordance with law after giving necessary opportunity of being heard to the assessee. Appeal of the assessee is allowed for statistical purposes. Assessee filed application under section 12A(1)(ac)(iii) in Form 10AB seeking permanent registration under section 12AB; CIT(Exemptions) rejected it as premature because an earlier order in Form 10AC remained valid till AY 2026-27. Assessee contended compliance with Rule 17A, submission of requisite documents and conditions of section 12AB(1)(b)(i). Revenue supported the CIT(E) decision. Tribunal, after perusal and hearing, found the matter required fresh consideration and directed the CIT(E) 'to reconsider the application of assessee for permanent registration filed u/s 12AB of the Act in accordance with law after giving necessary opportunity of being heard to the assessee.' Appeal was allowed 'for statistical purposes.'