TaxTMI 
TaxTMI 
2026 (1) TMI 234
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....rovisional application was not filed by selecting the appropriate clause, without pointing out any discrepancy on merits. 3. That the rejection order passed by the CIT(E) is required to be set aside and form 10AD be issued by allowing the final registration under section 12A(1)(ac)(iii) for AY's 2024-25 to 2028-29. 4. That The CIT(E) has failed to appreciate that the expenses incurred, as per the financial statements, are consistent with the aims and objects of the society. That, the CIT(E) failed to appreciate that the reason for rejection is not embedded in the specified violation as per section 12AB(4). 5. That the rejection of the final registration by the Learned CIT (Exemption), Chandigarh, is unjustified. The CIT(E) failed to consider that the typographical error in the provisional registration application, where the provision was incorrectly cited under Section 12A(1)(ac)(vi)(B) instead of Section 12A(1)(ac)(vi)(A), should not invalidate the final registration. 5 1. That CIT(E) failed to appreciate that the typo error in selecting the appropriate clause cannot be the reason for rejection. Furthermore, if the same had been pointed out ....
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....ther word he submits that Since this rejection order is passed solely on this procedural defect without pointing out any other deficiency regarding the genuineness of the activities or application of income for other than chartable purpose or for violation of any other object clause of the society, this application should have been accepted and registration should have been granted. 5.4 He further submitted, drawing reference to the financial statements of the assessee, that the said expenses has been incurred wholly to meet the objects of the society and there is no violation on financial count. 5.5 He further referred to the meaning of specified violation as per the provisions of section 12A(4) of the Act which reads as follows: "(a) where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or (b) the trust or institution has income from profits and gains of business which is not incidental to the attainment of its objectives or separate books of account are not maintained by such trust or institution in respect of the business w....
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....on was furnished under section 12A(1)(ac)(vi) which was not applicable to assessee since deduction under section 11 was claimed by assessee Accordingly, Commissioner(Exemption) rejected application filed by assessee - Assessee submitted that due to a typographical/inadvertent error application was filed under section 12A(1)(ac)(vi) whereas assessee was required to file application under section 12A(1)(ac)(iii) - Whether since Commissioner (Exemption) had not given any adverse finding on merits of case, against assessee, application was to be treated as filed under section 12A(1)(ac)(iii) and order rejecting application was to be set aside - Held, yes [Para 61 [In favour of assessee. (ii) [20251 173 Taxmann.Com 179 (AHMEDABAD - TRIB.) IN THE ITAT AHMEDABAD BENCH B' NIRAVADYA FOUNDATION V. COMMISSIONER OF INCOME-TAX (EXEMPTION) (Refer Page no. 4-8 of Case Law PB) Section 12A, read with section 12AB, of the Income-tax Act, 1961 - Charitable or religious trust - Registration of (Scope of provision) - Assessee filed an application for registration in Form No, 10AB under section 12A(1)(ac)(iii) - Commissioner (Exemption) rejected application on ground that assessee ....
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....e of rendering its objects. 7.2 Further we also refer to the scope and applicability of section 12A(1)(ac)(iv)(A) and section 12A(1)(ac)(vi)(B): Section Particulars Remarks 12A(1)(ac)(vi)(A) Applicable to newly established institutions that have not yet commenced their activities That Ld. CIT(E) rejected the application solely on technical grounds-first, holding that since the appellant commenced its activities in F.Y. 2021-22, the provisional registration u/s 12A(l)(ac)(vi)(A) granted under Form 10AC on 20.02.2024 was invalid as the option required to be selected was 12A(l)(ac)(vi)(B) instead of 12A(l)(ac)(vi)(A). That the CIT(E ) rejected the final registration filed under 10AB dated 19.08.2025 without pointing out any adverse comments on the genuineness or merits of the appellant's activities. 12A(1)(ac)(vi)(B) Applicable to institutions that have commenced activities and have not excluded any income under sections 11, 12, or 10(23C) prior to filing the registration application. 7.3 We also observe that the assessee was actually supposed to have filed the application u/s 12A(1)(ac)(vi)(B) of the Act instead of wrongly filed u/s 12A(1)(ac)(vi)(A)....